Dairy Queen Day
Tuesday, May 26, 2009
“Dairy Queen Day” – Our class objective is to increase the percentage of ice cream cake sales from 4% of overall sales to 10%. Our team needs to come up with a couple of ideas to try and make that happen. As part of our research, today we traveled around Shanghai visiting DQ stores throughout the city as part of our project. In all we visited about 6 stores. These are not like the DQ stores in the U.S. They are much smaller and typically in malls or in the subway stations. In addition to DQ stores, we also visited competitors to get an idea of what they are doing.
After our visits we had lunch at a Pizza Hut. The Pizza Hut we were at was the largest one in the world. This store has the largest sales of any other Pizza Hut in the world. It was HUGE and very nice inside. With the idea of experimenting, I had an Hawaiian Pizza – pretty crazy I know.
Next was the Textile Market. This is a market where you can buy fabric and have clothing items custom made. I went with the other member of my DQ team (including me there were 5 – 4 Americans and 1 Chinese). NOTE: It is ALWAYS very helpful to travel with someone who speaks the language. Shanghai is like NYC except very few people speak English.
In the textile market, negotiation is the name of the game. The first store we visited measured us for suits while we were picking out the fabric. They said they needed that info to give us a price. After they did that the initial price was 680 RMB (Chinese rembini) – that is about $100. Yes, that would be $100 for a custom made suit with a cashmere/wool blend. And that was the starting point. After a little negotiation, we go the price down to 1,000 RMB for 2 suits. Pretty good, but we thought we would check out some other vendors.
To make a long story short, I purchased 1 suit, 1 sport coat and 2 shirts all for 890 RMB – that is about $130. We ended paying 400 RMB per suit.
The most interesting part was getting measured. Let’s just say that were VERY diligent in getting their measurements! We go back on Tuesday to pick up our suits and see how they fit. I will make sure to include pictures the next time.
Then it was onto to dinner. We went to Hongmei Lui – which is an area for ex-pats. There is every kind of restaurant you could imagine. We settled on Thai food. It was pretty good. After that we went to the Captain’s Bar which was downtown Shanghai on top of a youth hostile. The bar overlooked the PuDong area of the city that I mentioned earlier. It was a pretty cool view and a neat little place.