Pinkberry Swirls in Buckhead

OUTLINE

Introduction Company Overview

External analysis Macro-environment Industry (Competitive) environment Industry life cycle

Conclusion

COMPANY PROFILE:“The taste that launched 1,000 parking tickets.”

Founded in 2005 in West Hollywood.

Founder: Shelly Hwang and Young Lee.

Funded by venture capital firm, Maveron.

Business Type: Franchise.

Number of Restaurants: more than l30 restaurants

Tagline: “Pinkberry is Swirly Goodness.”

Vision “Goodness every day”

Mission deliver a one-of-a-kind experience made up of

delicious products Creating an inspiring environment and emotional

connections Value

Connection ,customer , brand , quality ,performance and innovation

“Pinkberry goal is deliver smoothing taste to people”

EXTERNAL ANALYSIS

MACRO-ENVIRONMENT

Political : Possible changes in foreign trade regulations

since Pinkberry is a franchises company Taxation policy Entrance to WTO

Economical : US Dollar rate Disposable income of customers

MACRO-ENVIRONMENT

Social / Cultural Seasonal time Place to hang out Relief from stress Celebrity & Fashion Less Fat & Healthy Treat

Technological Developing localized corporate Pinkberry websites Social Media

Pinkberry Groupies (proprietary) and Pinkberry blog Facebook, Twitter

MACRO-ENVIRONMENT

Environmental Eco-Friendly containers

Legal The prohibition in Muslim countries of the

contents of the pork-derived

MACRO-ENVIRONMENT

Demographic Attracts ages 16-34

Global Forces Pinkberry has over 130 global locations and they

are continually opening new franchises

INDUSTRY:

The frozen yogurt industry has expanded very rapidly.

The porter’s 5 force model are:o Intensity of rivalry among established firms.o Risk of entry by potential competitors.o Bargaining bower of buyers.o Bargaining bower of suppliers.o Threats of substitutes.

PINKBERRY FROZEN YOGURT:PORTER’S FORCE MODEL

PinkberrySnogRed

mangoTCBY

Plain yogurt, flavored yogurt, choosing option.

Threat of substitute products or services

Frozen yogurt, fruits,

chocolate ,cups, spoons.

Law fat ice cream with acid flavor.

Locations, rents, working hours.

Bargaining power of suppliers

Threat of new entrants Bargaining

power of buyers

Rivalry

PORTER’S FORCE MODEL:

There are 4 elements of an attractive industry in Porter’s force models:

o High entry barriers.o Suppliers and buyers have weak positions.o Few threats from substitute products. o Moderate rivalry among competitors.

ENTRY BARRIERS:

It’s easy and inexpensive to open a frozen yogurt store in compare with other food options.

The core issue about it is the location, it must be in a success driving locations. Such as malls or famous streets.

the businesses can’t pay the high rent for these locations.

BUYERS AND SUPPLIERS POSITION:

The supplier of the frozen yogurt to pinkberry is Cielo USA. They really have a strong and high position because of the high demand of the frozen yogurt.

The buyers (Not final buyers) also have a power but not as high as the suppliers.

o Some retailer take the sponsorship for Pinkberry in their countries such as Alshaya Co. in Kuwait and also HSMHost has signed with Pinkberry to open stores in several countries in the middle east.

SUBSTITUTE PRODUCTS:

The substitute product for the frozen yogurt is the plain yogurt or mixed with many flavors.

It has no threats on the frozen yogurt industry because it targets a different demographical group.

RIVALRY AMONG COMPETITORS: The competitors for pinkberry are:o Red mango: -One hundred stores in US.

o TCBY - Five hundred stores only in US and many stores in

the middle east (Qatar,Bahrain).

o Snog: -Seven stores and planning to open 1 more (2 of them

in he middle east), Dubai &Kuwait.

INDUSTRY LIFE CYCLE:

GROWTH STAGE:

Pinkberry store is considered to be in the growth stage in this period of time.

They have many new customers and the celebrities are giving it a famous name.

The have many stores all over the world and it’s a well known name in the frozen yogurt industry, so the entry of barriers are relatively law in this stage.

CONCLUSION:

Pinkberry cannot survive if it attempts to cling to customers solely interested in eating frozen yogurt for being a fad. Once Pinkberry is no longer determined to be “hip” or “cool”, their sales will decrease dramatically

In order to be able to sustain profits in the long term, the optimal strategy is to try and establish Pinkberry as a national brand. Being a national brand offers stability and profits on an entirely different scale compared to Pinkberry’s current situation .

REFERENCES :

 http://buckhead.patch.com/articles/pinkberry-swirls-in-buckhead

http://www.careerbuilder.com/JobSeeker/Jobs/JobDetails.aspx?SiteID=glassd01&Job_DID=J8D4G76QTTXBCT6H6B6

 http://en.wikipedia.org/wiki/Pinkberry http://www.pinkberry.com http://www.foodservice.com/articles/show.cf

m?contentid=17876&title=Frozen%20Yogurt's%20Two%20Minute%20Problem

http://www.alibaba.com/member/us101897423.html

http://www.fundinguniverse.com/company-histories/TCBY-Enterprises-Inc-Company-History.html

http://en.wikipedia.org/wiki/Red_Mango