Fra and Pa's Yoghurt Shop in Birmingham: Market Entry Strategies

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Case Study
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This case study delves into Fra and Pa’s Yoghurt Shop, an ice-cream parlor style shop specializing in frozen yogurt located in Birmingham's Bullring Shopping Centre. Founded by Frank Jones and Paddy Jackson, the shop aims to capitalize on the growing trend of frozen yogurt consumption and health-conscious eating. The analysis includes a partnership evaluation, focusing on Frank and Paddy's investment and roles, followed by an assessment of the market using Porter's Five Forces, examining the threats of new entrants, buyer power, substitute products, supplier power, and competitive rivalry. The study further explores the macro-environmental factors through a PESTLE analysis, considering political, economic, social, and environmental influences on the business's decision-making process in Birmingham. The case study concludes by highlighting the challenges and opportunities for Fra and Pa’s Yoghurt Shop in the competitive Birmingham market.
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Fra and Pa’s Birmingham’s Yoghurt Shop 1
FRA AND PA’S YOGHURT COMPANY CASE STUDY
Student’s Name
Professor’s Name
Institution Affiliation
Date
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Fra and Pa’s Birmingham’s Yoghurt Shop 2
I. Introduction
Actually, frozen yogurt shops have always existed for quite a long time and are dominating
around the globe, particularly in the United States of America. Such patterns have additionally
developed within Europe, and as of late in Birmingham. Brand new worldwide pattern reveals
the new yogurt shops, which are showing up in different cities and states. The paper points out
how the idea of yogurt shops emergence by two potential accomplices, Blunt and Paddy. The
paper is partitioned into an examination of the yogurt shops association, an investigation of
Porter's five forces, lastly an assessment of the organization's Macro environmental factors,
which influences the organization to set up itself in Birmingham's commercial center. The paper
is centered around the Organization's market and the dialog of how to adjust the idea to its
commercial center and demonstrate that yogurt shops in Birmingham are because of social
contracts which vary from one yogurt shop to another in a few perspectives (AL-SALEH,
METWALLI, and ISMAIL, 2011).
II. Partnership evaluation
A vast number of partnership evaluation processes will always avail enough data pertaining
certain development processes and accountability. Every evaluation criteria comprise of certain
flaws, which must always be prioritized. In our case, the partnership evaluation to be done is
based on potential and well-experienced chefs who designed the Fra and Pa's frozen yogurt shop
(Analianasari and Apriyani, 2018). The partnership evaluation is through the comparison and
estimation of individual partnership strategies.
Therefore, prior beginning analyzing about partnership evaluation criteria for Fra and Pa's frozen
yogurt shop it is fundamental to focus on the shop’s administration and innovative considerations
in order to weigh if the advantages of establishing the business will meet the partner’s amount of
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Fra and Pa’s Birmingham’s Yoghurt Shop 3
capital invested. Thus in our case partnership evaluation based on the frozen yogurt shop
commences by engaging each stakeholder who is Frank Jones and Paddy Jackson (Step one).
When focusing on customer engagement process, the most recommended individuals who are
liable for company’s developments processes are Frank and Paddy since they have heavily
invested about $30,000 of their money in establishing the frozen yogurt shop in Birmingham
city. The partnership engagement process can have numerous benefits and help identify an
appropriate partner who will be in support of every process done within the business.
The next step to be done is the description of the partnership, which includes stating the present,
prospected events, results, phases through which the partnership progresses, together with the
social and political aspect. Therefore reflecting upon Frank and Paddy’s business the most
probable description is on the frozen yogurt to be introduced which will outfit other yogurt
designs introduced by other shops around Birmingham city.
Step 3 involves formulating a plan that takes into account the amount of data to be provided prior
to the establishment of the Fra and Pa's frozen yogurt shop. During the evaluation process,
focusing on the evaluative designs is the most vital aspect before you establish the business. This
is because the specific purpose intended during the evaluation process may far more be
dissimilar compared to the partnership’s objectivity.
III. Porter’s five forces
The segment has focused on a few exceptional attributed for the Fra-Pa's Organization yogurt
shop. Social contracts have been considered since exceptional qualities can be exceedingly
influenced by it. The type of method employed can always differ crosswise over societies in the
coordination of customer conduct and their inclinations. Therefore, through the creation of a
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Fra and Pa’s Birmingham’s Yoghurt Shop 4
legitimate recommendation of which attributes in adjusting a yogurt shop in Birmingham, the
market will be evaluated (Aydin, 2017). Consequently, the examination will comprise of Porter's
five forces, trailed by an analysis of the macro environment in which the business operates.
Figure 1: Illustration of Fra and Pa's Yoghurt Company’s Porter's five forces
I. New entrants
Direct competitors would be yogurt shops everywhere in Birmingham and restaurants amid it.
These shops do not exist around Birmingham presently, although yogurt shops could be
benchmarked and duplicated. The main two yogurt shops that are sold in Birmingham are
Frozberry and My FroYo Glass, which serve as the frozen yogurt. Therefore, they can get into
the market by complementing the fresh frozen yogurt in its product range. Along these lines,
there is a high probability of new contestants together with client’s steadfastness is critical for a
conceivable yogurt shop in Birmingham. Potential participants are anyway not considered of
Rivalry
(Medium)
New Entrants
(Medium)
Substitutes
(High)
Suppliers
(Low)
Buyers
(High)
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Fra and Pa’s Birmingham’s Yoghurt Shop 5
being at high risk, subsequently, comparable ideas in the marketplace can rigidly create a clear
comprehension of the idea and in this manner fill in a favorable position.
II. Buyers
Frozen yogurt shop will be appealing to each Birmingham subject who likes yogurt and who has
worried for wellbeing and calorie consumption. Research conducted by Birmingham scholars
found out that about 90 percent of Birmingham's ate more fat and less starch than suggested.
This inclination has changed point forward, and a review led by Birmingham's Sustenance
Organization in 2003, demonstrated that 33% of the members were worried about wellbeing, and
those worried about wellbeing were regularly reflected back to the women. Frozen Yogurt
consumption has expanded ten times, the previous four years Mette Hoffman from Arla
Nourishments guarantees that the pre-pressed yogurt container with muesli is the item with the
most noteworthy development in deals from Arla’s item extends.
III. Substitutes
Substitutes to a yogurt shop in Birmingham are many, anyway, coordinate substitutes are few.
Substitutes are sandwiches, pizzas, juices, franks, servings of mixed greens, frozen yogurt, buns,
in short, all littler sustenance's. In Copenhagen, there are various suppliers of such nourishment.
Consequently, for the client who needs something simple to destroy from home, substitutes are
incalculable. Nevertheless, for the client with worry for wellbeing and calories, substitutes are
less. The immediate substitute is crisp yogurt from an alternate provider. The main option is to
buy an Arla yogurt with muesli or the new item. Different items that are comparative, in
wellbeing and calories are juices or servings of mixed greens (WANG, ZHUANG, XU, and
JIANG, 2011). As a choice to breakfast, clients could pick pastry specialists.
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Fra and Pa’s Birmingham’s Yoghurt Shop 6
IV. Suppliers
This is a bigger natural dairy, possessed by sixty-four individuals. Arla is the biggest
Birmingham's dairy in Birmingham and offers both natural and non-natural yogurt. The four
remote yogurt shops, which were explored utilized non-natural yogurt. The finishes of the two
center gatherings were of high significance while concerning meat and dairy items. This is
bolstered by the discoveries in the review, which demonstrated that 70 percent of the members
buy natural dairy items. With interims of a half year, yogurt providers that meet these guidelines
can be considered, and the providers with the best item/taste can supply the yogurt shop the
accompanying a half year (Investopedia, 2018). The uncommon qualities of the outside yogurt
shops inferred in segment one demonstrated that serving enhancing items to yogurt could assist
the shop's item with being perceived as tidbits, treats, and breakfast. The center gatherings
concurred that they would need some espresso or juice with the yogurt, and the people
referenced the requirement for a bun. About fifty-seven percent of the members in the study have
an espresso with their morning meal.
V. Rivalry
In this case, the biggest risks for a yogurt shop establishment around Birmingham its Substitutes
and its purchasers. Meanwhile, a comparable supplier does not exist within Birmingham's market
since it is a hazard to open a yogurt shop. There exist no suppliers of a comparable item to
benchmark from, accordingly, there is a hazard that frozen yogurt that is far from home will not
be marketable around Birmingham. Various alternatives for simple sustenance away from
Birmingham make it simple for the cynic client to depict an alternate solution. Within the
Birmingham society, yogurt shop will have possibly monopolistic market range and other
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Fra and Pa’s Birmingham’s Yoghurt Shop 7
organizations that wind up mindful of this can undoubtedly enter (Fitzpatrick, Nguyen, and
Cayan, 2015).
They can be monetarily solid and experienced, which would empower them to open more stores
rapidly and offer unique and more extensive items. In this manner, Birmingham's new businesses
could without much of a stretch benchmark, and maintain a strategic distance from the first
mover botches. The conceivable outcomes of these new contestants are anyway not just
comprehended as threats, because more organizations with comparable ideas increase the client's
comprehension of the item. The market additionally brings extraordinary chances; the market is
monopolistic, in this manner, providers are somewhat simple to consult with and a yogurt shop
would have restrictive privileges of clients who need fresh yogurt far from home (Khan, 2014).
VI. Macro environmental analysis
Examining frozen yogurt macro environmental item classification, a PESTLE investigation has
been utilized to distinguish five primary powers that influence the decision-making process of
the Fra-PA has frozen yogurt shop in Birmingham. In this section, five forces are dissected based
on the political, monetary, biological, and social elements. The elements analyzed are shown
below:
a. Political elements – Most firms that have a higher stake within the operational health can
frequently adjust a relatively careful technique rather aiming at substantial profits with
having upheld the EFSA grants. Therefore, relating to the Fra and Pa's yogurt company
adoption of the strategy has tended to be much more expensive. In Birmingham, the
objectivity of the business to join the health calorie minimization sector astute to make
more customers be in a position of consuming fewer calories as before (Mathison, 2007).
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Fra and Pa’s Birmingham’s Yoghurt Shop 8
b. The government through the recycling process has initiated ecological elements – The
use of environmental friendly frozen yogurt.
c. Social elements – Positive recommendations have been pointed forward about the proper
type of yogurts to be made in Birmingham. Therefore, the focus is on meeting the
customer's daily needs abiding the standard health procedures.
VII. References
AL-Saleh, A., Netwalli, A. and Ismail, E. (2011). Physicochemical properties of probiotic-frozen
yogurt made from camel milk. International Journal of Dairy Technology, 64(4), pp.557-562.
Analianasari and Apriyani, M. (2018). Characteristics of Frozen Yoghurt Enriched with Red
Dragon Fruit Skin Extracts (Hylocereus polyrhizus). Journal of Physics: Conference Series, 953,
p.012036.
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Fra and Pa’s Birmingham’s Yoghurt Shop 9
Aydin, O. (2017). Assessing the environmental conditions of higher education: in a theoretical
approach using Porter’ s five forces model. Journal of Higher Education and Science, 7(2), p.378.
Fitzpatrick, B., Nguyen, Q. and Cayan, Z. (2015). An Upgrade To Competitive Corporate
Analysis: Creation Of A Personal Finance Platform To Strengthen Porters Five Competitive
Forces Model In Utilizing. Journal of Business & Economics Research (JBER), 13(1), p.54.
Investopedia. (2018). Porter's 5 Forces. [online] Available at:
https://www.investopedia.com/terms/p/porter.asp [Accessed 29 Dec. 2018].
Khan, R. (2014). Entrepreneurship Development Through Institutional Network. Saarbrücken:
LAP LAMBERT Academic Publishing.
Mathison, S. (2007). The partnership of new directions for evaluation and the American
evaluation association. New Directions for Evaluation, 2007(114), pp.3-7.
WANG, Y., ZHUANG, D., XU, X. and Jiang, D. (2011). Design of Macro-ecological
Environment Remote Sensing Monitoring System and the Key Technologies. Geo-information
Science, 13(5), pp.672-678.
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