Chapter 2 - Project profile

Chapter Two: Project Profile

2.1   Project Name

        

        Stickhouse, Italian gelato on a stick

2.2   Product Classification

        Stickhouse is a consumer product because they are to satisfy an individual’s need and desire. It is a non-durable product because it is classified under food/edible goods that fit for human consumption and will eventually be finished. It is a shopping good because consumers get to pick and choose their desirable shop that fits their interest.

2.3   Product Characteristic

        Category: Ice Cream

        Type: Gelato & Sorbet

         Packaging: The gelato is served on a stick unlike the usual gelato which is normally in a
                             cup. Each of the stick has their logo imprinted on it.

            Figure 1 Stickhouse packaging

            Flavor Range: International flavors and local flavor which are fruit-based, milk-based or

                                      Soy based.

                      Unit of sale: Per stick

Price Range:

Price varies depending on the choices of gelato or sorbet and it toppings.

Choices of gelato and sorbet
Classic: RM 6.90
Premium: RM 8.90
Mini: RM 4.90

Toppings (hazelnut, pistachio, or almond) & dips (dark, white, or milk chocolate)
Half: RM 1.00 additional
Full: RM 2.00 additional

Figure 2 Stickhouse’s product price rannge

2.4.   Product Range

Stickhouse provides a wide variety selection of gelato flavors that are either local or international including various fruit flavors – which are very colorful. The fresh sorbets are made with fresh fruit such as green apple, pineapple, lemon, orange, watermelon and etc and .They are naturally sucrose sugar-free because they are produced with fructose. Other than that, their sorbets are gluten free,lactose-free and can be consumed by vegans. They also use natural ingredients such as almond, hazelnuts, pistachios for the choice of topping. For the oversea branches, they offer more flavors; as for the branches in Malaysia, they have more than 20 flavors as well. The latest flavor in Malaysia branch is the durian flavor.

Stickmenu

	CLASSIC	PREMIUM
Gelato	Chocolate Vanilla Milk Yogurt Soy	Giandula (mix of hazelnut and chocolate)          Hazelnut          Strawberry Cream          Green Tea          Coffee          Pistachio         Yogurt strawberry         Soy Chocolate            Milk Natura (no sucrose sugar)       Hazelnut Natura (no sucrose sugar)
Sorbet	Green Apple         Pineapple           Lemon          Orange         Watermelon	Grape       Strawberry        Mango         Blueberry         Kiwi

Figure 3 Stickhouse flavors

Lastly, the toppings (hazelnut, pistachio, or almond) & dips (dark, white, or milk chocolate)

 Figure 4 Stickhouse on display

2.5   Distribution

        Direct:

        Stickhouse  gelato is distributed directly to their retail outlets as consumers are able to buy

        them without the involvement of any intermediaries.   

2.6   Product Lifecycle

Stickhouse was launched in 2011; therefore the product range is still in the intro segment. The product is still new, but it will catch up once the product range enters the growth part with the right advertising methods and good marketing strategy.

2.7   The Brand

Stickhouse is a 100% foreign own company from Italy which has its core business of producing Italian gelato. Stickhouse Srl was founded in 2008, and is now setting up a franchising network that will lay the groundwork for anyone who wants to open a gelato shop, with new innovative procedures and with a low initial investment.

Since January 2012, the new work system is used to create a DESSERT products line to offer consumers original gelato desserts, snacks and cakes keeping the main features of the products: handmade quality and naturalness of the ingredients used. They have branches and franchises all around the world, such as Cyprus, Dubai, Indonesia, Italy, Kuwait, Philippines, Saudi Arabia, Singapore, Spain, Switzerland, London, South Korea and Syria.

They have the main 5 product range in Malaysia for now. First, the gelato (zero air is added for denser and creamier texture with full taste and flavors). Second, the sorbet (uses real fruit juice). Third, the natura (using only fructose).Fourth, the probiotic (contains the benefits of both yogurt and fresh fruit).Lastly, the soy (natural goodness that's suitable for vegans and the lactose intolerant).

Stickhouse green logo with an ice cream stick outline gives out the idea that this gelato is served on a stick instead of a cup. This is one of their unique selling points because they are different with their competitors. The green color is associated with nature and health. Their tagline is “Italian Handcrafted Gelato.” Handcrafted means is done by hand; which in the case of Stickhouse means the dipping and topping are all done by hands with beautiful design. Customers can customize their own gelato by choosing their gelato base mix with their choices ,dip and cover with their own choice of dipping and toppings.

2.8   Brand Image and Implication  

The brand image of Stickhouse product is still quite unknown yet as it is still new in the market. Due to the newness, the implication of the product feedback is lacking from becoming the main product selection of the customers. With the market that is full with competitors, Stickhouse product is currently not the main choice in an ice cream product selection.

2.9   Strengths and Weaknesses

       
  2.9.1 Strengths

• The gelatos are made fresh daily in the shop.
•  Stickhouse method of producing gelato is different with the rest. Stickhouse gelatos do not contain any air AT ALL (ZERO air is added), retaining all the flavor and ingredients, thus making it 100% genuine and natural.
• Only use carefully chosen high quality ingredients and raw material imported from Italy.
• Stickhouse products are ideal products for children for their nutritional values. It is  a healthy and original alternative snack for children,
•  Stickhouse products even have flavors suitable for people who are intolerant to gluten, lactose and sugar! 
• The gelatos are served on a stick instead in a cup, which is very different than the other gelato in the market.

              2.9.2 Weakness

·         Consumers take them to be expensive as compared to their competitors.

·         The brand still very new in the market, not many people know about it yet.

·         They only have 3 outlets for now in Malaysia, and all 3 of them located at Klang Valley.

·         Limited advertising and promotion on the brand.

 2.10 Advantages and Disadvantages

        2.10.1 Advantages

• ·         Produce soy-based gelato for those who are lactose intolerant.
• ·         Only the freshest and healthiest ice creams are served to customers as they are made daily.
• ·         Good quality ingredients as they are imported from Italy.
• ·         Uses fructose for their sorbet for those who are sugar intolerant. – Fructose is a low glycemic index (GI) natural product contained in fruits, honey and some vegetables and plants.
• ·         Benefits in terms of health are guaranteed to customers who are health-conscious.
• ·         The use of no air whipped/added in the making of gelato giving it a very creamy texture, and it also helps to prevent them from melting quickly.

             2.10.2 Disadvantages

• ·         Competitions from brands who offer cheaper price of ice creams-customers prefer to spend less.
• ·         Consumers that are living in non-urban areas will not know about the brand as their outlets are focused mainly in urban areas.

         2.11 Unique Selling Proposition (USP)

         Stickhouse is the art of gelato on a stick, the authentic Italian gelato with all the goodness  

         minus the guilt.

     2.12 Promotional History and Advertising Schedule.

      Stickhouse is new in the market, so there is nothing much on the promotional history and the advertising schedule. But, they still did their promotion in order to get their brand recognize by the public. The ongoing promotions are being done in Stickhouse Facebook Fan Page and online deals. The online deals include deals that are offered on Ilovedeals.my, Ilovediscounts.my, dealsnavigator.com and many more. Below are some of them.

               Events and Activities

        1.      14th February 2012

          Valentine Special: Stickhouse Moments Contest

          Stickhouse outlet,Sunway Pyramid, Citta Mall

                  

  Figure 5 Photo of the contestant enjoying Stickhouse gelato 

Photos with the most "LIKES" on facebook will be chosen as the winner and win amazing

prizes.

         1.       25th of May - 3rd of June

         Chocoholic & Candylicious Fair 2012

         First World Plaza, Genting Highlands   

      

Figure 6 Chocoholic & Candylicious Fair 2012

    Promotions and Coupon Deals

           1.      Ilovedeal.my

-40% off- RM 6 for RM 10 Gelato Cash Voucher (Originally RM 10)

          2.      Ilovediscounts.my

-- 40% off- RM 6 for RM 10 Gelato Cash Voucher (Originally RM 10)

           3.      Dealsnavigator.com

           -40% off- RM 6 for RM 10 Gelato Cash Voucher (Originally RM 10)

    2.13      Positioning Statement

                 Stickhouse is the art of gelato on a stick, the authentic Italian gelato with all the goodness minus the guilt and they target customers who are health conscious but love to have the jolly-good time when they are eating the gelato.