Chapter 3 - Company

Chapter Three: The Company

                                                                                           

1.1      Company Overview

                     

 Stickhouse company was founded in 2006 when it started producing and selling the machine launching a novelty product in the Italian and world market: gelato on a stick. The machine is the only fully-automatic in the world that produces gelato on a stick. The machine utilizes micro-crystallization in order to produce an intensely flavorful ice cream, by using simple, genuine and all-natural ingredients. After that, the company also established Stickhouse SRL 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.

The company manufactures various flavors of gelato, sorbet, soy-based ice cream and yogurt ice cream that are aimed for not only health-conscious customers but those who just love ice cream. The company comes up with a soy-based product for consumers who have lactose intolerant. Stickhouse currently have 3 branches in Malaysia which are located at Klang Valley and they are planning to open their fourth branch in the time being.

3.2   Business Description

The Stickhouse brand originated from an Italian company. In 2008, Stickhouse Srl was founded, 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. Thanks to this great franchising network, this brand has brought in to Malaysia in 2011. The company introduces stickhouse as a new innovative healthy gelato concept from Italy. 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.

Stickouse main business consists of retail in frozen desserts predominantly on its gelato and sorbet production in Malaysia.Their production focused mainly on its ice cream retail which is their main source of profit in this business. Their expertise is in the making of Italian gelato and sorbet introduced to consumers. Stickhouse outlets can be located around the Klang Valley are in Malaysia. This brand has captured consumers who have a big heart for ice creams but are also health-conscious.

Stickhouse Malaysia’s director, Hu Sau Keong said in an interview that they are looking at various mediums to promote the brand. Firstly, he wants people to associate Stickhouse with healthiness and that is why most of the promotional materials focus on the fact that Stickhouse gelatos are healthy. Stickhouse  are currently active on Facebook and have been also mentioned in a few blogs. The target markets are youth and young parents and Stickhouse designed their promotional initiatives to attract these groups. They will also focus on special deals during school holidays and other occasions. The director also wants people to differentiate between Stickhouse Gelato and other gelatos through the advertising process.

3.3    Company History

With the experience gained by founders in 30 years in the ice cream industry, Stickhouse company has developed a machine "The Ghiacciola", able to produce ice cream on a stick using a new technology. They didn’t just stop there, they are ambitious and wanted to sell the machine.Those goals were reached in 2006, and they started producing and selling the machine launching a novelty product in the Italian and world market: gelato on a stick. The machine is the only fully-automatic in the world that produces gelato on a stick. The machine utilizes micro-crystallization in order to produce an intensely flavorful ice cream, by using simple, genuine and all-natural ingredients. Then,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.

Hu Sau Keong is the man responsible for bringing the Stickhouse brand to Malaysia for our ever-changing taste buds after he got a taste of it on his trip to the country that started it, Italy. He is the Stickhouse Malaysia’s director, who has been working in the fashion industry for about 10 years before getting into the F&B industry for diversity and interest. He introduced Stickhouse brand to the Malaysian market in the year 2011 and the response is good. People were skeptical at first, but once they tasted the gelatos, they were hooked. Some of the customers would come back and become the regulars. Customers also comments about the rich taste of the gelato and the genuine fruity tastes of the sorbet sticks.

3.3  Key People

Name	Job title	Board
Hu Sau Keong	Director	Executive

 3.5   Location and Subsidiaries

Stickhouse can be located at the following venues:

·         CITTA Mall

GK-07, 
1 Jalan PJU1A/48, 
PJU 1A, Ara Damansara, 
47301 Petaling Jaya, Selangor

·         Sunway Pyramid

 Lot LG2.RINK,
Jalan PJS11/15, Bandar Sunway,
46150 Petaling Jaya, Selangor

·         Setia City Mall

Lot-69,

No. 7, Persiaran Setia Dagang,

Bandar Setia Alam  Seksyen U13,

 40170 Shah Alam, Selangor.

·         Publika (opening soon)

LEVEL UG

1      Jalan Dutamas 1, Solaris Dutamas, KL.

3.6   Brands, Major Products and Services

Stickhouse is specialized in the manufacturing of gelato and is made using a tradition Italian recipe. The brand guarantees that their gelato is made fresh everyday which are using only 100% natural and genuine ingredients without adding artificial flavoring, coloring, or preservative.

Their major products contain 5 ranges, which are the gelato, sorbet, natura, probiotic and soy based.

                   

Figure 7  Stickhouse’s product range

Tasty gelatos -For people who prefer a denser, creamier texture and full tasting ice creams. Zero air is added in the churning process of the gelatos.

Fruity Sorbets- The sorbets are made with real fresh fruit juice.

Natura - Made using fructose instead of sucrose(a non-reducing sugar).This range is suitable for people who have sugar intolerant problem.

Wholesome Probiotic - Containing benefits of yogurt and fresh fruit, good for the digestion.

‘Soy’-ful Goodness - Natural goodness that's suitable for vegans and the lactose intolerant.

3.7   Corporate Vision

To be one of the world class gelato brand providing quality products with excellent services through continuous improvement and innovation.

3.8   Corporate Mission

·         To strengthen the current market with the support of advertisement, promotions and publicity to build a stronger brand identity and brand awareness level.

·         To be the number 1 brand that comes to customer mind whenever they feel like getting a gelato.

3.9   Company’s Current Promotional Strategy

2011- Launch Loyalty card to the customer in the first week.

2012- Valentine Special: Stickhouse Moments Contest Entries

        - Invitation to the bloggers: Blogger’s Review

        - Genting's Chocoholic & Candylicious Fair

 

 

3.10   Product Sales History

 

 

3.11. Current Marketing Strategy

 

Short Term Objective

To provide only the best quality of Italian Gelato to customers and stand against their

unfailing promise to produce the freshest and healthiest content in their gelato manufacture.

Long Term Objective

To develop more branch outlets as well as be the forerunner and market leader in the retail of

gelato.

3.12. Media Expenditure

Stickhouse knows the power of the media, especially on internet and social website. The influence of the media is very strong in this 21^st century and no doubts that stickhouse plays a smart move using the media to promote their brand. They have depended on a great deal of online advertising such as coupon discounts and promotions. Consumers may purchase these coupons online and get a great discount deal when purchasing the gelato at Stickhouse outlet upon using it. In the case of consumer location, the use of social media has also been a factor to gain recognition as stickhouse outlets are more concentrated in the big cities.

                                                                                                   

A word on Stickhouse can also be found through online reviews that include food review blogs or even customers sharing experience on Stickhouse’s outlets. They also produce give away brochures and flyers to the public so that the potential customers will get the information of Stickhouse.News and updates on the brand can also be found on their official website and Facebook Fan Page which are updated regularly. As of now, Stickhouse is gathering a big fan base on Facebook.They get the total of 18,902 users to like it on their facebook page.

Figure 8 Stickhouse Facebook page