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Dino Conti Ice cream

CONTENT

Subject: English 3
Discussion Group 1

Backgroud

Members:

Investment options

Dino Conti ice cream

1. Phạm
Phạm Thị
Thị Oanh
Oanh
1.

2. Đức
Đức Thị

Thị Nhung
Nhung
2.
Our investment plan
3. Nguyễn
Nguyễn Thúy
Thúy Nga
Nga
3.
4. Hoa
Hoa Văn
Văn Long
Long
4.


Background

Distribution in Supermaket and company-own stores.

Dino Conti ice cream
Dino’s have 15 flavours
Based in Santa Barbara (USA)

It is classic chocolate ice cream,
the name “ Dino Conti’s SupaKool”


Problem

Why the growth rate of
the company is slowing down?

Reasons for
falling profit


Dino Conti's main products (as a % of turnover)

Classic SupaKool chocolate ice cream

Six top flavours

7%
6%
14%

41%

Other flavour
Iced yoghurts
Novelty products

32%


The future
Paolo Conti has $3 million to invest in his company
so that it continues to expand
and
become an international business


Investment option
Build a bigger factory
Cost (estimated): $2.4 million
Benefit: More production capacity; lower unit costs

Export to China and Russia
Cost (estimated):
(estimated): $1.2
$1.2 million
million
Cost
Benefit: New
New markets
markets –– great
great sales
sales potential
potential
Benefit:

Buy out its major competitor
Cost (estimated): $2 million+
Benefit: Reduce competition; increase production capacity


Investment option
Develop a range of exotic fruit drinks
Cost (estimated): $2.5 million
Benefit: Move into a new area

Upgrade its equipment and fleet of trucks
Cost (estimated): $1.2 million
Benefit: Lower costs

Distribute to more outlets
Cost (estimated): $500,000
Benefit: Increase sales and profits


Investment option

Increase its advertising budget
Cost (estimated): $500,000
Benefit:Increase sales/ Improve company image

Make the company more ‘green’
Cost (estimated): $800,000
Benefit: Improve company image and sales

Improve the products ‘packaging’
Cost (estimated): $400,000
Benefit: Increase sales

Offer free ice cream to all comsumers one days a years
Cost (estimated): $600,000
Benefit: Raise awareness of the company; good PR


III. Our investment plan

Upgrade its equipment
and fleet of trucks

Total cost is estimated
Export to China and

at $ 2,9 million
Russia

Increase its advertising
budget


The reason
Reduce costs, increase productivity and product quality.

China and Russian is a potential market for development.

Expand the market and improve reputation for the company.

Increase distribution channels to increase sales.


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