Gelato Mobile’s Positioning Statement:
Providing a unique product combined with convenience and innovative delivery of the product through active customer online engagement.
The market for Gelato Mobile can be estimated using a few sources, and although this venture offers a unique product through unique channels, competition does exist in the form of other mobile food units (ice-cream, hotdogs) and fixed food services (Dairy Queen, other restaurants, as mentioned in Appendix C).
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Based on Facebook users who fall into the target market (101,620), if 4% (4064 customers) were engaged through social media enough to consume Gelato Mobile just once, and 40% of them (1625 customers) were retained for a second visit, Gelato Mobile would receive 5689 customers.
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Twitter user numbers in Saskatoon is not available. However, conservatively assuming 5% of Facebook target market users also use Twitter, and 8% of them were engaged through social media enough to consume Gelato Mobile just once, 406 customers would be obtained. With 40% retention for a second visit, this number increases to 569.
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These numbers do not include children under 16, people above 50, or those non-social media user who may accompany the social media target consumer. These “accompaniers” would increase projected number of customers.
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Foot and vehicle traffic: assuming 5% of the Saskatoon population (209,40019) would be aware of Gelato Mobile through word of mouth and seeing the unit, and 1% of the 5%, 104 customers could be obtained.
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These numbers also do not include the number of tourists who visit Saskatoon each summer, both from surrounding areas in Saskatchewan and those from out-of-province, who may come across Gelato Mobile in one of its high-traffic areas.
Based on the market analysis above, and on the viral nature of its social marketing channels, Gelato Mobile is estimated to have on average 20 individual customers per hour, with a total 16,880 customers, as show in the Financial Section below.
4.4 Marketing Strategy
Gelato Mobile’s marketing strategy is social media marketing: utilizing two-way social media channels to create community and awareness of; drive traffic to; and engage customers in the total, fun purchasing process of gelato. This fun process engagement will be through letting customers choose locations, flavours of the week, and track down Gelato Mobile to receive free product. The channel of distribution is social media, such as Facebook and Twitter, which is intricately part of the business strategy: “[s]ites will adopt Facebook Connect for two reasons: First, their users are already actively using it. And second, because it’s not just a registration system, it’s a marketing channel.”20
Other channels include foot/vehicular traffic unaware of the social media communications, who may come across Gelato Mobile and want a delectable, cool treat on a summer day.
However, it is the two-way communication using social media channels, through social media marketing, that is key to this business. Not only will Gelato Mobile communicate to potential customers, it will be creating a community centered on Gelato Mobile. This community will be fostered by customer engagement by allowing people to communicate with Gelato Mobile through Facebook and Twitter, by voting to choose the unit’s location, and by overall creating a fun purchasing process. In fact, 40% percent of Canadian interviews use social media “to communicate with organizations”21 and “in the current stormy economy, as companies look for new ways to market their products and engage their customers, chief executive officers are finally looking more and more at how social networking tools can extend their brands, create corporate cultures based on listening and learning [. . .] .”22
Due to the ever changing online environment, Gelato Mobile will need to closely monitor competitors’ movements and emerging trends that could affect its position.
4.5 Selling and Advertising
The advertising objective will be to create high awareness, or “word of mouse”, through social media marketing, to generate traffic to ultimately purchase gelato and be actively engaged in the Gelato Mobile community. As discussed below, the advertising mix has been determined to optimize social media channels and minimize advertising costs.
The advertising mix includes:
Facebook – Facebook’s number of users has grown exponentially in the past few years (77% of Canadians interviewed use Facebook23) and continues to be one of the most popular social media spaces. As shown above, there are currently 101,620 Facebook users who fall into Gelato Mobile’s target market. A Facebook page will be created and published by April 20, promoting Gelato Mobile, gathering fans listing events (i.e. Grand Opening) and informing fans of current promotions – all of which is instantly sent to its fan base, either online or redirected to fans’ mobile phones. As well, once a week, Gelato Mobile will set up a poll through Facebook, asking its fans where it should park for the day. The highest chosen answer (i.e. Centre Mall) is where Gelato Mobile will park for that day. Facebook expenses will be $500 for the season.
Twitter – Twitter is relatively newer than Facebook, and immediately ‘Tweets” a specific message to all your “Followers” about what you are currently doing. The following shows the age of visitors to Twitter24 (US stats) indicating a favourable alignment to Gelato Mobile’s target market.
Gelato Mobile will use Twitter to inform its Followers of location movement, of “2 Hour Price Promos”, and to immediately drive traffic (i.e. sample Tweet Gelato Mobile is at The Centre Mall – first 2 people to find us and say “Gelato” get a free scoop!”). These “Tweets” are immediately sent to Twitter Followers’ accounts, and cell phones connected to the Twitter account. This means these mobile phone users will immediately receive the messages, wherever they are.
Newspaper Ad – The Star Phoenix will provide a “New Saskatoon Business” article, featuring Gelato Mobile, to be published in May 2009, at no cost. This will be the only newspaper advertising Gelato Mobile will do.
Website – A website in the first 5 years may not be necessary, since Gelato Mobile will be creating awareness through social media, which is much more engaging and involves two-way communication. Should Gelato Mobile grow to an unforeseen size, a website could be developed in future years.
Signage – As outlined in the mobile unit supplier unit, Mr Cool will include customized signage for the truck. This will include the logo, Jerry’s name (as per Jerry’s supplier letter of agreement), as well as “Find us on Facebook” and “Be a Twitter Follower”.
For selling, co-op and high school students will be selected based on personality, experience and expertise with social media outlets. Staff will be encourage to interact with customers, asking them how they found out about Gelato Mobile, providing small samples to taste, and encouraging them to become Gelato Mobile Facebook Fans and Twitter Followers to be constantly updated about the location and current promotions Gelato Mobile offers.
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