Orchards University Washington Rob

CORNELL ORCHARDS

Table of Contents Section/Title Page Executive Summary 3 Company Description 4 Introduction 4 Market Summary 5 Market Needs 6 Strategic Focus and Plan 7 Mission Statement 7 Brand Footprint 7 Goals 8 Core Competencies 8 Sustainable Advantage 9 Situational Analysis 9 SWOT Analysis 9 Product Market Analysis 10 Industry Analysis 11 Competitors 12 Marketing Plan Objective 12 Identified Strengths 12 Opportunities to Consider 14 Improving Weaknesses 15

Threats 16 Objective 17 Survey 17 Target Market 19 Points of Difference 20 Branding & Positioning 22

Executive Summary The Cornell Orchards has operated on Cornell’s campus since around 1910. It has represented a symbol in and out Cornell responsible not only Cornell University’s growth, but the growth of the New York State produce industry through its research and corporate extensions; the retail shop was established shortly after the Orchards were founded. Cornell Orchards represents Cornell Dairy products have an established tradition of excellence, and are a source of school pride for students, faculty, and alumni. The Cornell Orchard enables the community to partake , while facilitating community involvement and social interaction. To increase student trafficking to the Dairy Bar, we have chosen to target freshmen undergraduates in the hope of making them repeat customers throughout their academic careers and as alumni. These first year students need a convenient place to relax and eat lunch that utilizes their meal plan options (Big Red Bucks). While the Dairy Bar is not the most convenient location, through increased marketing and promotion to freshmen we can reposition the Dairy Bar to being worth the walk. Our objective for the Cornell Dairy Bar is to increase the number of visits by freshmen to the Dairy Bar by 15% during the 2008-2009 academic year through increased promotion with the implementation of the “Freshmen Fifteen” in-house marketing program. This program entails giving out an ice cream card to all customers through which they can buy five get one free; similar to the coffee card given on campus. Also, “happy hour” will be held monthly for freshmen to come and sample free ice cream in a social environment. Finally, the program increases the use of the ice cream cart, utilizing its mobility and increasing its reach to students. The cart will be made available at sporting events and on north campus at specified times. With the adoption of the “Freshmen Fifteen” program, the Dairy Bar will no longer be a dining option whose location curtails their business.

Works Cited 31 Appendix 32

Company Description 4

Introduction The Cornell Dairy Bar is a unique institution within Cornell University that has been a long standing tradition and has a highly regarded reputation. It was first established in 1880 on the grounds near Bailey Hall, then moved to Goldwin Smith Hall, and then in 1923 settled into Stocking Hall, where it is currently located. Located on route 366 near the Veterinary Medical Center, the Cornell Orchards is run by the Department of Fruit and Vegetable Sciences. Apples and apple cider are available in the orchard sales room from September to May. Pears, grapes, and raspberries are sold in the fall. Cornell Orchards is a working orchard, vineyard and fruit farm managed by the Department of Horticulture. We sell fruit from our research and teaching plantings at our retail outlet, on Route 366 south of the College of Veterinary Medicine. That site includes our storage and packing facilities, cider press and research lab, surrounded by 37 acres of fruit plantings. ‘The Orchards’ also includes our 100-acre facility in Lansing, where the waters of Cayuga Lake moderate the temperature and extend the growing season. This allows us to grow European wine grapes, peaches and other cold-sensitive crops. To stretch out the fresh-apple harvest season from mid-summer to late fall, we grow more than 50 varieties – from the latest selections to centuriesold antiques. We sell about 20 for fresh eating and grow others especially for use in our custom-blended ciders. In addition to apples, we grow peaches, plums, cherries, pears, grapes, blueberries, strawberries, raspberries, blackberries, gooseberries, currants, pawpaws, chestnuts, and beach plums. We also sell some produce from our Thompson Vegetable Research Farm in Freeville. But we donate the vast majority of that harvest (as well as some of our fruit) to local food charities – more than 80 tons in 2005 alone. Cornell Orchards Located on campus, Cornell Orchards is a primary research facility and teaching tool in the fi eld of horticulture and beyond. Its research helps the fruit industry remain competitive while still producing high quality fruit for consumers with minimal environmental impact. The Orchards has also become a campus center for interdisciplinary research and long-term experiments. As a teaching facility, it is used by several Cornell departments; elementary school students who annually visit during apple harvest to observe cider making; and junior and senior high school students from throughout the state as part of the 4-H program. Much of the fruit grown at the orchards is sold at the on-site Sales Room. The number of apple varieties is unmatched at any retail outlet. The Sales Room also sells other Cornell fresh fruits and vegetables.

(1) http://pccw.alumni.cornell.edu/events/spring06/tours.pdf The Bar contains a quaint indoor and outdoor dining area consisting of approximately 75 seats (“Case Study: The Cornell Dairy Bar”). The Cornell Dairy Bar offers a number of

products ranging from lunch sandwiches and wraps to a plethora of different ice cream treats and desserts. The Bar capitalizes on selling their numerous dairy products that include: cheeses, milk, pudding, yogurt, and the ever so famous ice cream. The Dairy Bar’s number one seller is their delectable ice cream with this product enjoying a large share of the high-growth market, which makes it their “star.”(Appendix, Figure 1) All of the ice cream is made on campus with fresh milk from nearby farms. The Dairy Bar offers over 20 different flavors, including various seasonal flavors. One way that they have enabled their ice cream to become a star is through their ice cream cart, which sells ice cream on warmer days of the year and is located just outside of Day Hall. Ice cream has a profit margin of 200% (“Case Study: The Cornell Dairy Bar”) and maintains its position as a local ice cream power. Milk is the Dairy Bar’s “cash cow” with high market share and large cash generation, with slower growth. They also offer many lunch items including wraps, hot soups, pizza, subs, and sandwiches. A newer product that has recently been introduced is their “made-to-order” wraps. There are a number of wraps that customers can choose from such as, the chicken Caesar, buffalo chicken, tuna dill, or the classic BLT wrap. These new wraps are considered to be a “question mark” or “problem child” because although they have shown popularity, it is uncertain as to whether or not they will increase market share and continue with a high growth rate and become a “star”, alongside the Dairy Bar’s ice cream. One product that has a slower growth rate and low market share, especially in the warmer months, is the soup, which is considered to be a “dog.” (Appendix, Figure 1) Although the Dairy Bar is a fine institution overall, there are still many areas for which it could improve. Some of the biggest issues are that the layout is rather poor and that it is not run very efficiently. Throughout the store there are bottlenecks, which block access to the cashier line and food areas. At various times throughout the day there are very long lines. There have even been times when there are extremely long lines with only one employee working. These are just a few areas that could be improved upon to increase efficiency (“Case Study: The Cornell Dairy Bar”). Market Summary 5

Within Cornell University there are 13,562 undergraduate students on campus, ranging from ages 17 to 23. There are 6,077 graduate students, ranging between 23 and 29 years old on average. Of the 20,638 students enrolled in the university, 60% are Caucasian, 16% are Asian, 5% are African American, 5% are Hispanic, and 7% are International students. Also within the university there are 2,722 faculty members. The faculty is composed of non-professorial and nonacademic employees. There are also 11,504 staff members who are full-time or part-time professorial members (“Facts about Cornell”). Not only the school but the groceries stores compose the most important part of the market for the Cornell Orchards. These three sectors (students, faculty, and staff) compose the Dairy Bar’s target market, which comprises about 75% of their market. Within this targeted market the Bar concentrates on targeting students and faculty in the areas closest to the Bar. The veterinary school and the Ag quad are both relatively close to the Cornell Orchards and it is easy for students to walk to. The other 25% of the market is made up of residents in the surrounding Ithaca area. The Ithaca area and Tompkins County is approximately 84% Caucasian, 9.6% Asian, 4% Black, and 4% Hispanic. The median household income is

$38,890 and 13.5% of persons are below poverty. In Tompkins County there are 2,220 private non-farm establishments, 44,715 private non-farm employments, and 6,470 nonemployer establishments (US Census Bureau). Between the two markets (the Cornell market and the Ithaca area/ Tompkins County Market) the Dairy Bar sees approximately 328 customers daily. A goal for the Bar is to expand the two target markets, but it has been a difficult task due to limited advertising. The Bar places advertisements on the scoreboard of athletic competitions and also in the football media guide book (“Case Study: The Cornell Dairy Bar”). This has helped the Cornell market to grow, but the Ithaca market has fairly stagnant growth due to the fact that the Cornell Orchards has restricted advertising ability. It often advertises in the daily newspaper but its publicity works rather by words of mouth. Another factor that helps their market growth is the fact that the ice cream at the Bar gives them a competitive advantage over Trillium, a dining area that lacks a diverse dessert menu.

Market Needs 6

-Researching environmentally friendly practices (3)http://hort.cals.cornell.edu/cals/hort/about/about_orchards.cfm (4)Teaching the next generation of fruit growers The Cornell Dairy Bar fulfills market needs by supplying an escape from the hectic lives of Cornellians while satisfying their sweet tooth. It is a place where students and faculty can come to indulge in fresh apple cider, and other cornell orchards fruits, such as delicious food and also be in a warm, yet sociable atmosphere. Customers can pay with Big Red Bucks, which definitely fulfills a mark need for the frugal college student who does not want to spend his own money. The Cornell Dairy Bar will supply customers with a pick-me-up and send them on their way feeling as if the sun is shinning, even on the rainy days in Ithaca. Also, the Dairy Bar needs to expand their target market and reach more potential customers. The ice cream market is sensitive to seasonal fluxes so it has the potential to have many high growth months and months were revenues are declining. The market needs the Dairy Bar to differentiate itself from being an ice cream shop to being an actual dining option, to balance some of those growth and decline phases. Teaching the next generation of fruit growers

Strategic Plan and Focus Mission Statement The Cornell Orchards is a primary research and teaching facility for the Department of Horticulture and other departments in Cornell’s College of Agriculture and Life Sciences. Our research focuses on developing environmentally friendly, sustainable practices that provide consumers with healthy, high-quality fruit and help New York fruit producers flourish. (1) Also The objective of the research conducted here is to help the fruit industry remain competitive while producing high quality fruit for the

consumer with minimal environmental impacts. (2) http://vivo.cornell.edu/index.jsp?primary=121 The Cornell Dairy Bar is an established part of the Cornell tradition, with a long history and valued reputation. For both the Cornell Dairy Bar and Store its mission statement is to engage in undergraduate and graduate instruction in food science, participate in basic and applied research, perform public service through extension programs, offer training for New York State Agriculture & Markets and dairy industry personnel, and create high quality dairy products for the Cornell community (“Case Study: The Cornell Dairy Bar”). Brand Footprint and Positioning Statement Founded almost 100 years ago in 1910, the Cornell Orchards has been an integral part of not only Cornell University’s growth, but the growth of the New York State produce industry through its research and corporate extensions; the retail shop was established shortly after the Orchards were founded. Cornell Dairy has operated on Cornell’s campus since 1880. The tradition of Cornell Dairy products goes back over 100 years, and is a source of school pride for students, faculty, and alumni. The brand name Cornell Dairy conveys that tradition of excellence in dairy products to the entire Cornell community, and the Cornell Dairy Bar expands on that established community connection. The Cornell Dairy Bar as a brand encompasses the established quality associated with Cornell dairy products along with the growing reputation of its diverse lunch options not offered at Cornell Dining facilities. Core Values Personality 0 Quality Community Involvement 1 Tradition Personal 2 Diversity Sociable Essence: The lunch time café that will provide an enjoyable atmosphere and quality food. The positioning statement: For Cornell Students who want a break from over-crowded central campus dining, the Cornell Dairy Bar is the dining experience that they rely on to deliver a wide variety of foods and delicious dairy based desserts. Goals We have established three goals for the Cornell Dairy bar that we believe if met would greatly increase both the popularity and profits enjoyed by the Dairy Bar. The goals are as follows: 1Increase student awareness about the Dairy Bar and its products 2Increase the average number of customers seen per day to around 350 3Make store layout and employees more efficient Core Competencies

to stretch out the fresh-apple harvest season from mid-summer to late fall, we grow more than 50 varieties – from the latest selections to centuries-old antiques. We sell about 20 for fresh eating and grow others especially for use in our custom-blended ciders. In addition to apples, we grow peaches, plums, cherries, pears, grapes, blueberries, strawberries, raspberries, blackberries, gooseberries, currants, pawpaws, chestnuts, and beach plums. We also sell some produce from our Thompson Vegetable Research Farm in Freeville. But we donate the vast majority of that harvest (as well as some of our fruit) to local food charities – more than 80 tons in 2005 alone. All sales proceeds support our teaching and research programs. The Dairy Bar’s core competency is dairy products and more specifically, ice cream, no matter the season. The bar has a capacity to hold 24 different flavors, varying with season and popularity. Its profit margin on ice cream sales is 200%, far greater than any other category. Ice cream and milk are the two most highly purchased products with 89% of Cornell faculty polled rating the dairy products as above average (“Case Study: Cornell Dairy Bar”). There is no doubt that dairy is the key to the Dairy Bar’s success. 9 Sustainable Advantage from The Dairy Bar’s sustainable advantage is their featured dairy products, especially Cornell ice cream. Ice cream is the clear crowd favorite and sets them apart from other dining options on campus that either does not offer Cornell ice cream or in limited variety. Furthermore, the Dairy Bar’s association with the Cornell Dairy Brand and the reputation of quality it provides enables the Dairy Bar to have a significantly different menu Cornell Dining options. The ice cream and quality dairy products will keep customers coming to the Dairy Bar. sus-advant from The Cornell Orchard’s sustainable advantage is their featured products, the apples and Apple syrup. Apply syrup is the clear crowd favorite and sets the Orchards from other dining options on campus and other orchards in the region, that respectively either does not offer Cornell ice cream or in limited variety or just do not have the expertise to make it. Furthermore, the Orchard reputation of quality enables it to have a significantly different impact than any other orchard The quality of the apple syrup and the apple picking events will keep the customers coming to the orchard.

Situational Analysis SWOT Analysis Figure 2 in the Appendix shows the SWOT analysis chart. The Cornell Dairy Bar has many strengths and opportunities that it can continue to capitalize on. A major strength is the management’s openness to suggestion and change. They brought in a specialist to make suggestions and help to improve the Dairy Bar. They are also open to expanding their marketing budget to increase their revenues. A major weakness of the Cornell Dairy Bar is its location. It is constantly listed as a weakness and a threat. It is in a location that is not frequented by many of the Cornell students/staff/faculty. The location makes it necessary to make a special trip down to the Dairy Bar for the majority of customers and many simply feel that the opportunity cost of making a trip to the Dairy Bar is not worth the time it takes there and back. Another

advantage is that besides the location, many of the weaknesses and threats are easy to turn into strengths and opportunities by applying different methods, which management is open to. 10 Product- Market Classification As an organization grows, it can do so by following one of the growth strategies of the Product/Market Grid: Market Penetration, product development, market development, and/or diversification. The Cornell Orchards could penetrate the current market by reaching out to the current market and expand on its products. It can do this by expanding its advertising, and also creating incentives, such as giveaways and discounts, for people to make the journey to the Cornell Orchards. The Cornell Orchards could develop new products for the current market, such as new flavors of ice cream. It can also offer a wider selection of fruits derived products; such as pies, and juices. This might help to bring in more revenues through the current market. By offering more options, the Cornell Orchards could associate itself with the Cornell Dairy Brand and offer yoghurts, and lots of derived products, associating dairy and fruits. Furthermore, the Cornell Orchards could as well organize events located in Central campus as opposed to keep events at the boundary of it. These represent options that the Cornell Orchards has in terms of growth strategies. Types of possible uses:  Bakery  Clafoutis  Pies  Sauces  Sorbet  Appetizers  Foie Gras  Retail  Jams  Entrée  Venison  Chutney  Compote  Pickled  Brandied  Nouveau  Dried/salted blossoms  Unripe for sushi

11 Industry Analysis

The objective of the Orchards conducted here is to help the fruit industry remain competitive while producing high quality fruit for the consumer with minimal environmental impacts.(1)http://research.cals.cornell.edu/index.jsp?home=3&primary=121 As American society changes, the farm industry needs to adjust as well. 2 years ago, in 2006 around the harvest festival at Cornell Orchards, and beach plums (Prunus maritima), commonly found on coastal dunes, are one of the newest fruits being harvested this year, thanks to an ambitious Cornell project to turn the unusual plant into a crop. That's because beach plum jam is in high demand, but finding enough fruit to make it has been increasingly hard. (2) http://www.news.cornell.edu/stories/Sept06/BeachPlum.kr.html

so, we see that the university has associated with other universities and northeastern farms to realize that project. Therefore it seems that the cornell orchard remains in search for new products to grow. Cornell Orchards doesn’t face much competition on the campus because it is one in its kind, and deliver products to the Cornell dining halls and eateries. In that matter it is able to serve the all campus with its products. It also brings its products through the vending machines that sells cider. The market outside campus is wider and more difficult obviously to control. Since Cornell Orchards donates most of its productions or use the proceeds of the sells for research, it is not such a avidly seeking profit organization. This is why they were able to team with competitors in oder to bring the project of beach plum alive. Americans are becoming more health conscious and as a result, ice cream with high fat content may see a drop in sales. Many companies have developed low-fat or fat-free ice cream products as a response to changes in consumer preferences. According to Rachael Kyllo, the vice president of marketing for Kemps, “Consumers are striving to eat as healthy as possible and are looking for products that take the guesswork out of calorie control. Kemps 100 Calorie Minis are perfect for on-the-go snacking without having to worry about overindulging” (Kemps). Products such as these will see growth in the market with a widening consumer base. With the growth of the ice cream market, more manufacturers are using powdered ingredients, instead of fresh dairy products. According to one article, “because of ease of handling and storage, there is likely to be increased interest in examining the functionality and consistency of dried dairy ingredients in icecream” (Udabage). The ice cream industry as a whole is also becoming more brand intensive. According to sales figures in 2006, “overall sales appear to be trending down, several brands are undergoing decent to outstanding growth, while private label sales continue to shrink in 2006 as they did in 2005” (Ice Cream). As a private brand, the Cornell Dairy should be aware that it is more difficult for private labels to grow in the current industry. One subcategory that appears to be growing is ice cream/ice milk desserts, which includes ice cream cakes. Although it still makes up less than 10% of the market, it shows consistent growth (Ice Cream). 12 Competitors Many of the competitors are very good competition within the area. http://www.allaboutapples.com/orchard/ny03.htm New York Apple Association.

Trillium competes for customers on campus while Purity and Eat Dessert First compete off campus. Although the Cornell Dairy Bar does not compete directly with companies outside of Cornell, there is still competition for providing ice cream and other goods to the residents of the local area. All of these competitors have a good reputation with the community, and Purity also is a tradition in the community much like the Dairy Bar is a tradition at Cornell University. All of these other stores also offer easy and convenient locations and also quick service. One main advantage that both Purity and Eat Dessert First have over the Dairy Bar and Trillium, is their flexible advertising options. This severely limits the Dairy Bar’s ability to attract other consumers that are not affiliated with Cornell University. The prices of ice cream products are very comparable, so no one store has a competitive advantage over the other in that respect. The other stores also have an advantage in that there are more workers and the stores are more efficient than the Dairy Bar at serving customers (except Eat Dessert First). No one store has a significant competitive advantage over another and so they will continue to compete for the same business. Marketing Plan Objective Identified Strengths Research and Storage A major selling point for the orchards is their controlled atmosphere holding tank. This is a practice developed nearly 50 years ago at Cornell in the College of Agriculture and Life Sciences.

It has since become an industry standard around the world and Cornell

continues to be at the forefront of apple and other agriculturally-minded research. The reduced oxygen levels slow the apples aging and as a result they can be stored for over 6 months after the harvest. Apple harvesting typically begins in mid-summer and lasts until late fall; this exceptionally long harvest is due, in part, to the large variety of apples the Orchards grow. Harvested apples are either stored in the regular storage room or the controlled atmosphere cold storage room. While the air we breathe contains roughly 21% oxygen, the oxygen in the Controlled Atmosphere (CA) tank is depleted to 2.5% and carbon dioxide levels are not permitted to rise above 2%. CA-kept fruit is firmer, more flavorful, and more nutritious as compared to fruit stored in a standard cooler for a

comparable period of time. Preserving the harvest for longer provides apples nearly year round for research in the following: • • • • • •

Identification of pest and disease-resistant fruit varieties Testing biological pest controls Development of organic, integrated pest management (IPM) and integrated fruit production (IFP) systems that use fewer pesticides and rely on safer products Studies on soil quality and how it affects the hearth of plants Studies pertaining to fruit crop’s nutrient uptake from the soil and how healthier roots affect the health of trees, vines, and fruits Extending fruit harvests

Therefore this contributes to the branding of the Cornell Orchards, and poses it as a very good quality brand. Now, the Cornell Orchards can continue to build upon this fabric recognition. The Cornell Dairy bar has several strengths to their credit which they can continue to build upon. The most important strength is the Dairy Bar’s reputation for tradition and quality of products. The Dairy Bar has many repeat customers who return based on the quality of ice cream alone. Alumni will return to campus and visit the Dairy Bar and 13 students visiting campus on college visits will make a stop at the Dairy Bar because of its reputation. Also, management is open to new suggestions regarding their store, which is positive because without their openness, it would be difficult to implement any new ideas. In addition to ice cream, the Cornell Dairy Bar sells a variety of other diverse products. These items include sandwiches, beverages, soups, pastries, and many more. When products prove to be unprofitable, the Dairy Bar substitutes them with a different option. This proves to be a strength because with a diverse product mix, customers can come to the Dairy Bar for items other than ice cream, potentially bringing more business. Because the Cornell Dairy Bar does not let unprofitable items remain on the shelf, it opens the door for higher profits with more successful products. In addition to varying products, the Cornell Dairy Bar has variety in their ice cream flavors every season. Each semester, the Dairy Bar produces the winning ice cream flavor from Food Science 101 for a limited period of time. This process gives incentive to students to create new, inspired flavors and give the Cornell Dairy Bar a unique new flavor of ice cream to serve their customers. The ice cream cart that the Dairy Bar situates outside of Day Hall proves to be another strength. The location provides students traveling through central campus the chance to purchase ice cream at a more convenient place. The cart also acts as advertising for the Dairy Bar. Students can taste the delicious ice cream and when the cart is not in front of Day Hall, they can plan a trip to the Dairy Bar. In terms of the actual facility, the Cornell Dairy bar offers both indoor and outdoor seating. During the hot summer months, customers can escape the heat in the Dairy Bar’s

air conditioned store or enjoy a pleasant afternoon at the outdoor tables. One strength that the Cornell Dairy bar needs to capitalize on is the bus stop located immediately in front of 14 the store and the pay lot located across the street. The bus stop and parking area represent major opportunities because of the Dairy Bar’s distant location from central campus. The above strengths mentioned need to be continually capitalized in order to maximize the Dairy Bar’s presence on Cornell University’s campus. Opportunities to Consider Expanding Markets - In September of 2003 we conducted a series of interviews with 6 gourmet chefs in the New York City area. Each chef was given 5 pounds of beach plum fruit to experiment with and to share their results with us. The chefs were excited about beach plum in general. One chef requested to purchase additional fruit from us and added a beach plum sauce to his restaurant menu for the holiday season. Another chef plans to put on a beach plum dinner in late winter of this year, where every course contains beach plum in some part of the recipe. This upscale restaurant market is always looking for something innovative and could possibly be a lucrative outlet for beach plum and other specialty fruits. (1) http://www.fruit.cornell.edu/Berries/specialtyfru%20pdf/beachplum.pdf vending machines on campus and outside campus as well, for apples, fruits, apple pies, fruit pies...etc… (2) http://www.news.cornell.edu/stories/Sept07/appleVending.html (3) http://www.beachplum.cornell.edu/2002fd/pdfs/4consumer.pdf analysis of the beach blum market. n March 2002, Dr. Wen-fei Uva, Department of Applied Economics and Management at Cornell University, conducted a focus group study of beach plum products. Key conclusions include: • • • • •

Market expansion potential exists for beach plum products among gourmet consumers in coastal metropolitan areas. Packaging with price is the primary marketing tool to communicate that beach plum products are gourmet, giftable and otherwise special. Gourmet jams and jellies are purchased from various independent stores or farm markets and not from supermarkets. Jams or jellies made with cultivated beach plums will not impede consumers' interests in trying the product. Consumers' interests in beach plum presented market opportunities for new product development.

The Cornell Dairy Bar has succeeded in selling ice cream at more campus athletic events, but the opportunity exists to sell at events campus wide. With the plethora of extracurricular groups that exist on Cornell’s campus and the number of events

orchestrated each semester, it is crucial that the Cornell Dairy Bar sell ice cream at these times. Not only will it give the Dairy Bar a chance to make additional profits, but it will also raise awareness about the quality of ice cream available right on campus. Since they already have a cart to use, the only additional costs would be for labor. Another opportunity the Cornell Dairy Bar should exploit is marketing their ice cream more heavily to the Cornell student body. While they may have been aware of it at one point in their college careers, many students may have forgotten the many options that the Dairy Bar provides. Not only is delicious ice cream available, but one can also purchase a full meal. This option can make the trip out to the Dairy bar even more rewarding for busy college students because it can accomplish the tasks of finding a meal and enjoying a treat afterwards. The biggest opportunity that the Cornell Dairy bar has is with matriculating undergraduate students. When incoming freshmen learn of the options presented at the Dairy Bar, they will potentially become customers for life. Not only will they return frequently to have ice cream and food during their years at Cornell, but they come back 15 once again as alumni. The key is to effectively market the Dairy Bar to the freshmen in the beginning. Expansion with the cornell dairy brand to consider to cross product. Improving Weaknesses Advertising and Promotion –doc ProfFruits format. Powerpoint beach plum. Packaging Purchase preference Supply Consistent quality Freshness Bakery use Cornell Dairy Brand?

The management at the Cornell Dairy Bar has a few aspects to improve upon. The Dairy Bar is frequently understaffed, especially during frequent hours. During peak hours, there should be at least four people on staff. One person can be working the register, two people serving ice cream, and one person controlling the sandwich area. If additional people were staffed, they could help with ice cream or ensure the facility stays tidy. The management should also ensure that restocking is only done during low traffic times. In relation to food offered, the Cornell Dairy Bar can offer a more diverse soup selection which can entice people to purchase a full meal. Also, more options also need to be made available for vegetarian customers. To inform customers about the additional food options available, the Dairy Bar needs to advertise more. People need to know that they can go to the Cornell Dairy Bar for more than just ice cream because it will make the trip out there more worthwhile. As American society becomes more health conscious, the

Dairy Bar needs to adjust as well by offering low fat foods. Ice cream with lower fat content also needs to be offered to tempt customers. Many people watch their calorie intake, so there need to be low fat options to attract them to the Dairy Bar. One threat to the Cornell Dairy Bar is the student’s unawareness of products sold by the company. Many people are uninformed of the wide range of products that the Dairy Bar offers, from soups and sandwiches to beverages and pastries. The Dairy Bar is missing out on potential profits because of this oversight because people can come in for more than just ice cream. Customers can enjoy a full meal, which will make them more 16 likely to come to the Dairy Bar. This threat can be avoided through improved advertising and promotion on campus. The final weakness that needs to be improved at the Cornell Dairy Bar is the store layout. While the facility offers limited space for major change, little changes can be made to use the space more effectively. While standing in line at the Dairy Bar, it is not clear what the ice cream options are. Currently, the customers go to the register first to state what size they are getting and pay, then they move to the right and choose a flavor of ice cream. This could cause a significant back up during peak hours if people do not know what they want to order. To correct this, a sign could be hung to state what ice cream flavors are offered and a short description of the ingredients. This would give customers a chance to decide exactly what ice cream they will choose before they order, and keep the line moving faster. Finally, the Dairy Bar could rope off a more efficient area for the line to form during peak hours. Improving these weaknesses will serve to increase the Dairy Bar’s business. Threats One threat to the Cornell Dairy Bar is a low advertising budget. With an increased advertising budget, the Cornell Dairy Bar can promote their products and make Cornell students more aware of what is offered. The advertising restrictions that the Dairy Bar faces are another threat to the company. The Dairy Bar’s affiliation with Cornell University restricts their ability to advertise in the Ithaca community. It can only advertise in the Ithaca Times, the Cornell Daily Sun, and VBR (“Case Study: The Cornell Dairy Bar”), which limits its contact with people outside of Cornell. If the Dairy Bar could 17 advertise in newspapers like the Ithaca Journal, which has a very high circulation in the community, it may raise customer awareness. The threat of other dining facilities exists as well. With places like Trillium and the Vet School Cafeteria in such close proximity to the Dairy Bar, it is possible that they are losing business to those facilities. To battle this threat, the Dairy Bar needs to make students aware that they offer products other than ice cream, in order to draw more business. If students can go to the Dairy Bar for lunch as well as an ice cream treat, they will be more inclined to do so. By combating these threats, the Cornell Dairy Bar will prevent losses of business. Objective The Cornell Dairy Bar’s objective is to increase the number of visits of freshmen to the Dairy Bar by 15% during the 2008-2009 academic year through increase promotion with the implementation of “The Freshman Fifteen,” the in-house promotion plan for the Dairy Bar.

Survey The Cornell Dairy Bar will complete two rounds of surveys in order to assess the success or failure of the objective. First, a survey will be given to freshmen who come to the Dairy Bar, and the Dairy Bar should aim to survey at least 500 students. The cashier will be responsible for giving the survey to freshmen after they order and pay for their food. The number of people who receive this survey will depend on the number of freshmen who come into the Dairy Bar, as it should only be completed by students once. The purpose of this study is to find out how well the promotion is reaching the target audience. Questions will include items such as, how many times the person has been to 18 the dairy bar, how they heard about the Dairy Bar, the quality of food or service, and what food they ordered (Appendix, Figure 5). By finding out how the students heard about the Dairy Bar, it can be shown how the promotion and advertising is working. The information will allow the Dairy bar to note what is not working and correct the problems, and also inform the staff about what is working. By asking what products the student is purchasing, the Dairy Bar can see what products are appealing to customers. The scale of quality and service will tell the Dairy Bar how its business is perceived overall to customers. Questions and comments will prove to tell the Dairy Bar what they can improve upon in the future. This information will be printed on a piece of paper and distributed by the Dairy Bar. The completed forms will be collected and analyzed by the people administering the survey. The data will be analyzed manually, and then the compiled data will be entered into an Excel spreadsheet for further analysis. The information can later be made into charts and graphs to see figures more visually. The second survey can be given out to freshmen in the spring toward the end of the academic year. The Dairy Bar should aim to survey at least 1,000 students by handing out the survey during several introductory classes (Appendix, Figure 6). The Dairy Bar can collaborate with professors of courses to hand out the survey during the last few minutes of class. By targeting introductory classes, there will be a higher rate of freshmen students. Since the survey will be given at the end of the year, it will give the Dairy Bar a sense of how many students visited the Dairy Bar or are aware of the promotions going on there. Questions will ask about the number of times the student visited the Cornell Dairy Bar, what their overall experience was, and how did the student hear about the Dairy Bar. This survey needs to be kept short because most students do not have the time or patience to 19 deal with long, involved surveys. These questions will give the Dairy Bar a sense of how well they completed its objective. The survey will show how well the promotion has reached the target market and how well the Cornell Dairy Bar reached its objective of increasing the number of freshmen to the store.

Target Market Currently the three sectors that comprise 75% of the Dairy Bar’s market are students, faculty, and staff. Within this market, we have chosen to specifically target first-year students. For the 2007-2008 academic year there are 13,562 undergraduate students, 3,055 of which are freshmen. Of the newly enrolled freshmen, 82% scored above 650 on the math portion of the SAT and 66% scored above 650 on the

critical reading portion of the SAT. Of the students who were ranked in their secondary school, 87% were in the top 10% of their graduating class. Also, 67% of freshmen attended public schools, 23% attended private schools, and 10% were chartered, homeschooled, or other. For the 2007 fall semester 23.5% of students are enrolled in Agriculture and Life Sciences, 3.6% in Architecture, Art, and Planning, 31.0% in Arts and Sciences, 20.6% in Engineering, 6.3% in Hotel Administration, 8.9% in Human Ecology, 6.1% in Industrial and Labor Relations. Within the class of 2011 48.2% are female and 51.8% are male. In addition, demographic statistics include 39.5% Caucasian, 15.2% Asian, 5.9% Bi/Multiracial, 5.6% African America, 5.2% Hispanic, 0.5% Native American, and 18.1% who did not report their information. New York native freshman account for 32.4% of the freshman class; 21.3% are from the Mid-Atlantic region, 11.4% are from the New England region, 9.8% from the West, 8.3% are International students, 7.4% from the Midwest, 20 5.4% from the South, and 4.0% from the Southwestern region. Also of the 2011 class, 38% are receiving need-based scholarship/grant aid and 44.5% have been awarded financial aid. Freshman retention rate has been reported to be 96% and first-year students who entered in the fall in 2000 and graduated within six years has been reported to be 92%. These two numbers have stressed our importance for targeting freshman. If we can get them hooked on the Dairy Bar the first year, they will tentatively become loyal customers over their following academic years and when the return as alumni. The best and most logical way to segment the new target market is by each student’s college. This segmentation variable will identify which students are in each college, and furthermore it can determine what each student’s major is. By using this segmentation variable the Dairy Bar staff will be able to zero in on the students who belong to the colleges closest in proximity to the Dairy Bar, for example, the College of Agriculture and Life Science. Another useful variable is to find out what time most students are on campus. This information will be collected via survey and will tell the Dairy Bar, on average, what time the majority of the students are on campus. This data is crucial in informing the Dairy Bar of when they should most effectively target customers. By targeting specific colleges and determining class times, the Cornell Dairy Bar will further segment the student population and focus advertising on particular student groups.

Points of Difference The Cornell Dairy Bar is renowned in the local ice cream market. There are many points that distinguish it from its competitors. One of these is that it is part of a tradition at Cornell University. The Dairy Bar has established itself in years past as a maker of high 21 quality ice cream, and because of this, many alumni and other previous customers continually return to Cornell and make purchases at the Dairy Bar. They are also able to order it through the mail, which is a service that not many places offer. Another point of difference is that the Dairy Bar is located on the Cornell Campus. This provides a distinct advantage over the competition because it provides access to thousands of students, faculty, and staff, especially those who do not have a means of transportation off campus.

It is within walking distance and also a short bus ride to these students, faculty, and staff, so if they have time in between classes or are on a break, they are able to go to the Dairy Bar if they only have a short break. One other distinction is that the Cornell Dairy Bar is mentioned to all of the newcomers that come to the Cornell Campus and take the tour. It is recommended that all visitors go to the Dairy Bar and try the ice cream, which draws people there and they might potentially make more purchases in addition to the ice cream. This, along with other word of mouth advertising by previous customers, gives the Cornell Dairy Bar a lot of free advertising to help boost its small budget. The plan will create another point of difference because the target market is specifically freshmen. The Dairy Bar has an advantage over other competitors because they have access to and can target the freshmen. The University has provided the freshmen with free bus passes, making their trip to the Dairy Bar just a short bus ride away. Since it is a part of Cornell University, it is easier to go to freshmen events and promote its products. The Dairy Bar has the resources to target the freshmen well, where as a lot of its competitors cannot. More detailed information about specific targeting measures will be provided in the Promotion section of Component three. 22 Branding and Positioning With the main objectives of reaching first-year students and converting them into repeat customers during their academic careers, the brand footprint developed for the Cornell Dairy Bar will not change. The Dairy Bar’s core values of quality, tradition, and diversity will help promote the café to newly enrolled students. Similarly, The Dairy Bar’s intimate yet social personality sets it apart from the overcrowded dining options on North and Central campus. The positioning statement will change slightly to address the new target audience. Core Values Personality 0 Quality Community Involvement 1Tradition Personal 2Diversity Sociable Essence: The lunch time café that will provide an enjoyable atmosphere and quality food. The positioning statement: For first-year Cornell students who want a break from over-crowded central and north campus dining, the Cornell Dairy Bar is the dining experience that they rely on to deliver a wide variety of foods and delicious dairy based desserts. With a target market of firstyear undergraduate Cornell students, the perceptual map consisting of the Cornell Dairy Bar and its competitors orients itself with quality rating on the vertical axis and convenience ratings on the horizontal axis (Appendix, Figure 7). Relative quality is important compared to the other dining options both on and off campus, and convenience is of major importance due to the members of the target market. The majority of freshmen do not have access to a car and only mode of transportation is walking and the TCAT bus. Therefore, convenience plays a huge role in dining options. All dining options located on

23 campus are rated relatively convenient due to their accessibility by bus or short walk. The dining halls located on North are the most convenient for the majority of the target market (freshman), and Cornell dining is known for its quality nationwide. Trillium Dining has good, quality food and is convenient with its location in the Ag quad and access to CALS students. The Dairy Bar’s ice cream cart located in front of Day hall has a nice, central campus location and the ice cream is viewed as above average by 89% of Cornell faculty polled (“Case Study: Cornell Dairy Bar”). One of the Dairy bar’s biggest ice cream competitors is Purity ice cream located in downtown Ithaca. However for the target market, Purity is inconvenient for regular weekday visits. The Cornell Dairy Bar is currently enjoying high quality ratings but lower convenience ratings. The Dairy Bar wants to be considered more convenient by students and therefore enjoy higher trafficking throughout the day. Since their location is unlikely to change, the challenge is to change the consumer’s opinions about the Dairy Bar’s convenience and move the Dairy Bar rightward on the perceptual map. Some other competitors include fast food restaurants that sell dairy based desserts and food, which are considered both inconvenient and low quality. Also, the restaurant Friendly’s is known for their ice cream but overall the restaurant is of lower quality and inconvenient to the target market. Therefore, it is important for the Cornell Dairy Bar to move from inconvenient to convenient for students on the perceptual map.