Analysis of Dan Eric’s Grand Ice Cream Dealership Business

COMPANY BACKGROUND

Dominic Lim is a registered dealer of Dan Eric’s Grand Ice Cream (Dan Eric). His dealership business operates as one of Dan Eric’s agents in delivering the ice cream orders of the different outlets to their respective locations. Dominic applied and was approved for dealership of Dan Eric in 1st District of Batangas in May 2013. This district is composed of six towns namely, Balayan, Tuy, Calaca, Lian, Nasugbu, and Calatagan. The dealership license entitles him to be the sole distributor of Dan Eric in the said area.

Dan Eric is a well-known ice cream brand in the South for its affordable yet delicious and creamy taste. It is owned and operated by Danilo Fortunado Flores and is located in Paranaque, City. It distributes its ice creams through dealerships. Its ice cream comes in different flavors and packages including 1.7 Gallon, 1 Liter, Ice Lolly, Ice Buko, Pint, Half Gallon, Cones, and many more. (See exhibit 1)

Dominic’s dealership started operating in July 2013 with one retail outlet/freezer in the town of Poblacion. In September 2014, the retail outlets/freezers registered under Dominic’s dealership grew to twelve. This was the time when Dan Eric was not yet popular to Batangas area. Dominic used Facebook in order to introduce Dan Eric to his networks. This somehow helped increase his retail outlet dealerships. Dominic’s vision is to have at least ten freezers in one town or a total of sixty freezers for the whole 1st District of Batangas. A retail outlet can have one or more freezers depending upon the owner’s choice. (See Exhibit 2 for sample freezers).

An unfortunate event happened in September 2014 where Dominic passed away due to heart attack. The wife of Dominic, Karen Lim who was still in mourning phase, assumed the management of the dealership. Karen is an accountant in a multi-national company in Cavite. Karen’s marketing strategy was a simple flyer that she and her siblings hand out to customers or passersby. In November 2014, the freezers increased to nineteen. At this point with nineteen freezers, the dealership was already making P200,000.00 monthly sales. Then came May 2015, the registered freezers of the dealership jumped to twenty five. This was the point where the dealership hit its first million. In February 2016, the freezers increased to forty-eight with a whopping P2.50 million in sales for February and P3.10 million in March. It is expected that sales will stay up at P3.00 million during this summer season. Out of this 48 freezers, 5 of which is owned by Karen and is managed by her siblings.

Karen was very happy with the turn out of the business and is eager to expand and reach his late husband’s vision of sixty freezers.

Delivery operations

Currently with forty-eight registered freezers, the dealership delivers ice cream four times a week (Monday, Tuesday, Thursday and Friday). Karen will send a text message to each outlet for their orders at 6AM, a day before the delivery. The cutoff time for the orders is until 12NN. After Karen summarized the orders, she will now send a text message of orders to the delivery man. This delivery man is paid and managed by the Batangas Dealership Head. Thus, Karen only uses her cellphone in order to transact her dealership business.