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ICE cream

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Vestina Jasinskaite

on 5 September 2014

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Transcript of ICE cream

Dreyer's Grand Ice Cream
DSD System (Direct-Store-Delivery)
Successfully increased market volume, revenue and market share

Low profitability

External: Increasing cost of material
Internal: Huge investment on Grand Plan
Human resources
"I can make difference" philosophy
Findings - Success
Collect data by salesmen
- allow Dreyer’s to tailor flavors and inventory
Findings - Failure
Lack of Market Prediction
- Customer preference

Thank you
Findings - Investing Grand Plan
Market analysis 1
Recommendation 1
Recommendation 2
Findings - failure
Respect for individuals
People involvement
Face-to-face communication
Upside-down organization

Abstract, not clear statements

No convinced award or promotion

Outsider’s Opinion - Hire an external adviser

Dispassionate analysis of important issues

Agency problem
Produce their own butterfat

Stable source of material & price
Quality control

Increase operational cost
Damage supplier relationship
Lack of Goal Planning
- Over estimation of outcome &
Under estimation of Grand Plan length

Findings – Lack of Market Prediction

1. The shift from nonfat ice cream to full-fat ice cream

Human Resources
Source: Dreyer’s Grand Ice Cream

Findings – Lack of Goal Planning

2. Grand plan completed by 1998

1. A four-fold increase form 1993 to 1998

Findings - Increased cost
86% of all U.S. households
1. Marketing Prediction

Avoided inventory costs.

Improved cash flow
Higher market share
Production plan----reduce risk
Technical, sales and marketing support
Prediction can be inaccurate

2.Short-term Marketing Planning

Motivate employees
Decrease risks
3. Develop Long-term Partnership

Decrease the cost of DSD, package, advertising…
Stable income

Fix cost: $100,000 refrigerated truck
Need to distribute rival brands to meet the cost
Loss of the Ben & Jerry’s distribution contact (7.5%)
No responsibility for Retailers
Stop investing on the DSD system

Outsourcing the delivery service

"...Search of Excellence..."
"...assume that.."
"...people issues are the primary responsibility of our managers.."
Cost saving

Too much attention to the form
rather than on realty
"Employees accused the executive team... developing philosophy only on paper, but not truly on practice"

Lack of team to arrange the feedback

No instruments implemented measuring the performance
No supervision
Over reliance on two people
Strategic plan
Recommendation 1
Recommendation 2
Improve "Grooves"
Clear direction
Practical incentives
Human Resource Department
Focus on motivation
Hygiene factors

Clear companies' policies
Salary based on performance
Data feedback from retailers
skyrocketing butterfat
Market analysis 2
Full transcript