Frosty Boy Manufacturing And Distributing Company

Running head: FROSTY BOY
FROSTY BOY
Name of the University:
Name of the Student:
Author Note:

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Executive Summary:
The following report is based on one of the most popular desert house of Australia, the Frosty
Boy. It is a manufacturing and distributing company of Soft Serves and Frozen Yogurts, and had
been in business for a long time now. Therefore, in the following report, upon a basic
introduction of the company, the marketing plan for the company for this New Year has been
discussed. The Frosty Boy is one of the most successful beverage and desert organizations of the
country, and the organization has gone through a number of changes, over the time. Therefore, in
the year 2020, the organization is aiming at including certain new aspects and implementing a
new marketing plan, along with expanding its branches across the world. Therefore, in the
following report, a new marketing plan has been shared, along with the implementation of
certain levels of control and along with the inclusion of a new marketing plan.

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Introduction:
Frosty Boy is the leading manufacturing house of deserts in the country with a number of
variants in flavours and with a huge range of products items and types. Established in 1976, with
it’s headquarter in Queensland, the company is one of the major leading organizations in the
food and beverage industry, in the country. The organization has not only included a huge range
of products and items, but at the same time it has included the manufacturing of various food
equipment which are often needed in the food and beverage industry. The organization has also
included a sustainable approach in their business proceedings. The organization practices and
helps the aspirant entrepreneurs in order to expand their business, and encourages in the start- up
projects. The organization essentially provides importance to establishing and maintaining a
loyal customer base, and therefore, they include ethical, legal, and sustainable approaches in
their business processes. They also believe in research and development, in order to enrich and
expand their product base and to successfully involve into import business (frostyboy, 2020).
They also believe that in order to maintain the loyal customer base, it is important to actively
take part in the innovation process, and to come up with newer products and newer approaches.
There are three main products, upon which they are further expanding, first is, soft serves and the
yoghurt bases, the beverage powders and the smoothie bases, and finally the toppings and the
syrups. Along with these, there are also certain customised products, which are made according
to the requirements of the customers. Therefore, it can be said that the organization has, over the
time, included a number of innovative approaches, and has tried to expand their business as
much as possible. The company has earned $35.4 million, last year (frostyboy, 2020). Therefore,
the organization is aiming to develop and extend the financial revenue structure.

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Therefore, in the following report, a marketing plan for the organization will be
presented, as the organization wants to expand further and along with this, the organization
wants get incorporated into the globalized and digitalized business processes. Therefore, in this
report, firstly, a SWOT analysis will be presented, in order to understand the current situation of
the organization, and upon this the further recommendations will be made. The aim of the report
is to present a marketing plan, for the organization which will be acknowledging the objectives
that have been included by the organization for this upcoming year.
Situation Analysis:
The situation analysis refers to the factor analysis of an organization considering the
internal and the external factors that influence upon the organization. Therefore, it e3ssnetially
includes the approaches of SWOT and PESTEL analysis of the organizations, in order to
understand the current market representation of the same. Therefore, the SWORT and the
PESTEL analysis of the organization is provided in the following.
Internal or SWOT Analysis:
Strengths Weaknesses
 Being one of the oldest business
house, it has a huge loyal customer
base.
 Excellent quality management, and
skills or maintaining the brand equity.
 A variant range of products
 The operation cost is huge.
 A lack in the promotional
approaches.
 The sorbet range is rather new and
needs variation and rigorous

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contributing to good product
portfolio.
 A strong supply chain.
promotion.
Opportunities Threats
 Exportation policies and approaches
must be strategically put into use, and
it must be given good thought.
 The organization has a huge future
market base in the Asian and African
countries.
 Promotional practices through
multimedia, and digitalization of the
products, and the marketing
approaches.
o A huge market competition from,
Weis, Ferguson Plarre Bakehouse,
Wendy’s Supa Sundaes, Lion Dairy
and drinks, So Natural, and the like.
o Product diversification, with the
inclusion of approaches to health and
wellness.
o Online retail marketing done by other
industries in the market.
External or PESTEL Analysis:
Political Factors The political conditions of Queensland has helped the country to grow
and expand domestically.
The organization has also a partnership with a number of major

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organizations of the market.
In their approaches to market expansion, the organization has
effectively used the political aspects. It is especially true for their
market expansion in the Asian and African countries.
The organization has also tied up with certain elementary schools of the
country.
Economic Factors The investors have been very effective for the growth and expansion of
the company.
The investments by other investors have increased the revenue almost 3
times, in the previous decade.
The entrepreneurs, who have made an affiliation with the company,
have increased the sales of the organizations thus, helping in increasing
the sakes and revenue.
Social Factors The peer group or the family member can have a huge impact in the
consuming pattern of the customers, and this has been effectively used
by the organization.
The organization has incorporated a sustainable approach in the
business processes.
The diversity management within the organisation is impeccable.
Technological The organization noticeably makes very little investment in the updating

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Factors the technological factors.
The website of the organization is been made in a very amateur way.
However the organization has made a huge investment in the making of
the equipment.
Also, the organization has made a hug investment in maintaining the
fiscal year.
Legal Factors The organization strictly follows its own legal conducts, and thereupon,
the organizations that want to make a partnership or the organizations
involved in a supply chain relationship with the company, has to sign
the contract papers.
The organization encourages many entrepreneurs, and therefore
specifies upon the legal relationship.
However, there are certain legal misconducts that the organization had
to face because of the exploitation of the legal clauses by the
entrepreneurs, and the domestics channel sales.
Environmental
Factors
The organization effectively incorporates a sustainable approach in its
business processes.
It includes a green technology and energy system.

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Objectives:
Therefore, the above mentioned SWOT and PESTLE analysis have helped in identifying the
organizational objectives that it is aiming to incorporate. Therefore, considering the situational
analysis, the following objectives must be included, idealistically.
 Increasing promotional activities.
 Making a platform for the online retail services.
 Including the concept of internationalization or globalization.
 Product diversification, as well as market diversification, for being a long time in the
industry, and to compete in the current competitive global market (frostyboy, 2020).
Strategy and Tactics:
In order to develop a marketing plan, it is important to analyse the marketing mix for the
company, which includes the analysis of the 4ps of the market, being, Product, Price, Place, and
Promotion.
Product:
The product strategy of the organization includes a range of products, which are quite
diversified. Since the organization essentially focusses on the frozen food, therefore, all their
items are related to the same field. The organization is essentially a manufacturer of the frozen
products, and the product range includes, they have soft serves, cup and cone ice creams,
beverages like the smoothies, and the sorbet, frozen yoghurt which is essentially made by a
powder base, and granita or slushy, which is basically flavoured ice. They also make the
toppings and the flavourings and along with these, they have two customized and patent

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products, the Frosty Whip, which is a non- dairy whipped cream, and the Frosty Krem, which is
used as a savoury cream for the cooking applications. The mentioned products refer that there is
a specific market that the products of the organization includes.
However, the organization must include more variations in their product base. They are
also the manufacturer of the frost food equipment, however, the organization must include a
diversified product range, which will fit into their specialized market. Since the organization has
specialized in non- dairy frozen market, therefore, they must come up with other products which
are available in the dairy market, but not in the non- dairy market. They must include sundaes
which are similar in nature. Alsop, they can venture into other frozen food industries.
Price:
One of the most crucial and effective feature of the organization is their effective and
affordable price range. Over the years, the increase in the prices of the products have been
comparatively less than the other frozen organizations. This is one of the most important reasons
for the market expansion of the organization. The primary aim of the organization is to keep the
prices lower than the other competitors in the field, and since there are a number of organization
which get the frost equipment from this organization itself, therefore, Frosty Boy, has
strategically kept the prices lower (Sun. 2016). However, since the organization is in the business
for more than 40 years now, and since it is going to celebrate its 50th anniversary, very soon,
therefore, it is important for the organization to come up with a product which will be their
flagship product, and which will be introduced in the market at a higher price, claiming itself to
be the premium product of the organization. Such attributes give the organizations a premium
positioning in the market.

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Place:
One of the primary reason for the successful survival of the organization amongst the
competitors, is its unique supply chain management, or its distributive channel. The organization
includes a very unique and effective distributive channel. From the supply of the raw materials,
till the supply of the products, the channels of distribution of the products are not only effective
but very efficient, thus benefitting the organization (Sun. 2016). The joint conducts with the
aspirant entrepreneurs and the joint ventures with the start- ups, and other organizations, have
also enabled the organization to create its niche place in the country.
Promotion:
There is a huge lack in the areas of promotion of the organization. The organization must
take active part in the promotional processes. Apart from the posters, put up by the channels of
distribution, and their presence in the market for more than 40 years, and some promotions
through the modes of television, apart from these, the organization has not included any rigorous
forms of promotional practices, which is a crucial aspect for the market expansion, and market
growth (Sun. 2016). Therefore, the organization must take an active and rigorous promotional
aspects. Market promotion is important for generating awareness among the customers regarding
the products and the services. Therefore, the organization must include an active forms of
promotions in order to create an expanded market and customer base.
Strategizing:
In order to restate its position in the market and to gain more market expansion, and
market exposure, the organization should involve the followings in order to manage its position.

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 First, the organization must include the aspects of product diversification and should aim
for including newer range of products in the market.
 Secondly, the organization must include the aspects of rigorous promotional activities
into its strategy. The promotional activities are very important for the strategic expansion
of the organization and its products.
 Thirdly, the organization must include a premium object into the industry, thus
repositioning itself. Introducing premium products is one of the exclusive business
strategy, therefore, the organization must include certain trademark premium products.
Along with this, the organization must also consider its pricing strategy.
 Lastly, the organization must consider the market expansion in the Asian and African
countries, since it has an exclusive future and an arena of opportunities in this sector
(Hodder. 2015).
Budgeting:
Budgeting is one of the most important aspect of the marketing plan, and it should be
done in a very strategic manner, in order to succeed in the market, and at the same time, to be
able to forecast the profit and further plan and strategize the sales according to them.
Profit & Loss Analysis:
The organization is expected to achieve profit in the next three years.

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PROFIT & LOSS ANALYSIS
Sales Direct Sales Cost
Other Total Cost of Sales
Gross Margin Gross Margin Percentage
Expenses Payroll
Sales and Marketing Expenses Depreciation
Cost of Leased Equip Systems Utilities
Insurance Cost Other Taxes
Tax of Payroll Other
Break- Even Analysis:
There is a gain of 53% monthly, as per the analysis.
0.5 1 1.5 2 2.5 3 3.5
0
10000
20000
30000
40000
50000
60000
Break- even
Scenario Analysis:
Considering the scenario, the organization is expected to view a growth of 33.33%, and
considering the worst situation, the organization is expected to observe a 5% growth over all.

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SCENARIO ANALYSIS
Sales Price Marketing Cost
Profit or Loss Profit or Loss Percentage
Implementation:
Business Structure:
The organization includes a divisional structure, as each of the segment of product has its
own division and own supply chain management therefore, in such structures it is rather easy to
include, and thereupon, practice the developmental attributes. One of the best features of this
types of organizations is that, it is rather easy to meet the requirements of the industries or the
market and to establish an effective communication chain, in order to maintain the practices,
within each of the divisions, and thus, ensuring the profit.
Planning Process:
Strategic Planning:
Strategic planning refers to the environment and budget oriented planning, whereby, the
organizations include the aspects of organizational budgeting and the sustainable approaches into
the planning of the sales and marketing of the products and services. The strategies must be

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included in determining the objectives and the mission statement of the organization as well, and
within the environmental factors the internal and the external factors must be reviewed properly
(Knoke. 2018).
Resource Management:
In order to get optimum efficiency, it is important for the organizations to manage and
put into use effectively, the resources of the organization. Resource management helps the
organizations in being able to foresee the barriers and restricts the organizations from getting
burnt out (Knoke. 2018). Therefore, the resource management process follows the following
steps.

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Product and Service Management:
Product and service management refers to the changing information regarding the profile
of the company. It refers to the process of designing, creating and therefore, maintaining the
product life cycle. This enable the organizations to understand and manage change, and follow
the market trends (Chatthipmongkol, and Jangphanish. 2016).
Control:
From the above discussion it can be stated that there is a potential gap in the business
processes of the organization. The organization must include a number of objects and products
and services in order to expand its business, and to restructure its position in the market. The gap
is found because of the lack of understanding of the current trends in the market and
acknowledging the business processes. Also, it has been mentioned that the organization must re-
posit itself in the market, through the forces and processes of promotion and premium products.
Since the organization has been in the business for more than 40 years now, therefore, it is
important for the organization, to have restate its position in the market (Yahya, Samicho, and

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Azmi. 2016). However, it will need the organisation sometime, to get the position, and a detailed
understanding of the timeline has been given in the following.
Gantt Chart:
January-
March
March-
May
May- July July-
September
September-
November
November-
January
Particulars
Selection of
topic
Dividing the
work
Finding
Data
Situational
Analysis
Preparation
of Budget
Implementati
on and

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Control
Appendix:
particulars Amount
Monthly Beak- even of the revenues $102, 189
Assumptions
Variable Cost Percenetage approximate 53%
fixed cost analyzed monthly $54,160
Factor Best Case Worst Case
Sales Price 1.5 1
Marketing Cost -10% 30%
Profit or Loss 0.5 0.05
Profit or Loss
Percentage 33.33% 5%

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Particualrs
YEAR 1 YEAR 2 YEAR 3
Sales $2,100,469 $2,186,601 $2,456,611
Direct Sales Cost $1,511,679 $1,450,531 $1,543,469
Other $0 $0 $0
Total Cost of Sales $1,231,350 $1,450,531 $1,543,469
Gross Margin $588,790 $736,070 $913,142
Gross Margin
Percentage 47.82% 50.74% 59.16%
Expenses
Payroll $298,670 $298,670 $298,670
Sales and Marketing
Expenses $63,650 $63,650 $63,650
Depreciation $5,900 $5,900 $5,900
Cost of Leased Equip
Systems $10,600 $10,600 $10,600
Utilities $15,000 $15,000 $15,000
Insurance Cost $12,600 $12,900 $13,200
Other Taxes $15,000 $15,000 $15,000
Tax of Payroll $65,500 $65,500 $65,500
Other $0 $0 $0
Total Operating
Expenses 486,920 487,220 487,520
Net Profit $166,420 $230,543 $300,412
Amount

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References:
Chatthipmongkol, M. and Jangphanish, K., 2016. Factors Influencing Consumer Decision—
Making Process of Thai Frozen Food Products. International Business Management, 10(2),
pp.166-175.
Frostyboy, a. (2020). Frosty Boy – A leading manufacturer of frozen dessert bases. [online]
Frostyboy.com. Available at: http://www.frostyboy.com/ [Accessed 16 Jan. 2020].
Hodder, P., 2015. Bodies under stress. Kai Tiaki: Nursing New Zealand, 21(5), p.31.
Knoke, D., 2018. Changing organizations: Business networks in the new political economy.
Routledge.
Sun, D.W., 2016. Handbook of frozen food processing and packaging. CRC press.
Yahya, H., Samicho, Z. and Azmi, A.F.M.N., 2016. A Review on Application of Halalan-
Toyyiban Risk Management Plan (HTRMP) and Frozen Food Chain during Warehousing
Activities for Maintaining Halal, Safety, and Quality. J. Appl. Environ. Biol. Sci, 6(11), pp.96-
102.