Dippin Dots Essay
Since its inception in 1988, Dippin’ Dots has identified itself as “the ice cream of the future.” Relying on the financial and administrative support of his family, founder Curt Jones utilized his entrepreneurial spirit to combine his experience as a microbiologist with America’s favorite frozen dessert and launched a novelty product that grew into an international brand. Although the company initially experienced rapid growth through its franchising structure and was consistently highly ranked by trade publications and industry analysts, things took a dramatic turn after leadership was restructured in 2006. Moving from president to chairman of the board, Jones became less involved in day to day operations of the company. Despite new initiatives …show more content…
Their distinctly different, cryogenically created dots enjoyed years of market differentiation with little or no substitute or counterfeit competitors. The brand also benefits from consistency through production centralization. Although Dippin’ Dots operates in 48 states and 11 countries through multiple venues, including online, all products are manufactured at a single facility in Paducah, Kentucky.
Weaknesses
Due to the high costs associated with storing and transporting sub-zero products, Dippin’ Dots struggles to improve the value and efficiency of their distribution chain. Most research and development is focused on product innovation at the expense of distribution efficiencies. The unique needs of their novelty products limits their market availability and renders nearly half of the frozen dessert market, that of in store purchases for at home use, unreachable.
Opportunities
Dippin’ Dots has several avenues for expansion. Acquisitions of smaller competitors with similar product offerings can consolidate and sustain their competitive advantage. Specifically, Mini Melts, who has replicated their process in manufacturing facilities around the world. Entrance into emerging economies can incorporate international celebrities to heighten brand
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While Jones’ original idea was a unique blend of cryo-technology and food production, since the first Eureka batch of dots there has been little interest in exploring new innovations for production. Instead, new product offerings incorporate the original dot technology in some method. Without serious investment in innovating for their future, Dippin’ Dots runs the risk of their tagline becoming a joke and themselves the
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