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TARGET MARKET PROJECT
ICE CREAM INDUSTRY
KRISTEN SMITH
2	
TABLE OF CONTENTS
MARKETING ENVIRONMENT -------------------------------------------------------------- 3
INDUSTRY POTENTIAL ------------------------------------------------------------- 4
CURRENT TRENDS ------------------------------------------------------------------- 5
COMPETITIVE FACTORS ---------------------------------------------------------- 6
TECHNOLOGICAL FACTORS ----------------------------------------------------- 7
POLITICAL & LEGAL FACTORS -------------------------------------------------- 8
SOCIAL & CULTURAL FACTORS ----------------------------------------------- 9
CONSUMER BEHAVIOR FACTORS --------------------------------------------- 10
COMPETITOR #1 (BASKIN-ROBBINS) --------------------------------------------------- 11
POSITIONING MAPS ----------------------------------------------------------------- 12
PRIMARY TARGET MARKET ANALYISIS ------------------------------------- 14
PRODUCT -------------------------------------------------------------------------------- 15
PRICE-------------------------------------------------------------------------------------- 16
PLACE ------------------------------------------------------------------------------------- 17
PROMOTION ---------------------------------------------------------------------------- 19
WEBSITE ---------------------------------------------------------------------------------- 20
COMPETITOR #2 (COLD STONE) ---------------------------------------------------------- 22
POSITIONING MAPS ------------------------------------------------------------------ 23
PRIMARY TARGET MARKET ANALYISIS -------------------------------------- 25
PRODUCT -------------------------------------------------------------------------------- 26
PRICE --------------------------------------------------------------------------------------- 28
PLACE -------------------------------------------------------------------------------------- 29
PROMOTION ----------------------------------------------------------------------------- 30
WEBSITE------------------------------------------------------------------------------------ 32
TIME OUT-------------------------------------------------------------------------------------------- 33
ETHICAL ISSUE & ACTION PLAN --------------------------------------------------- 34
SWOT ANALYSIS--------------------------------------------------------------------------- 35
COMPETITIVE ADVANTAGES --------------------------------------------------------- 36
INTERNAL MARKETING STRATEGIES --------------------------------------------- 37
THIRD PRODUCT (COWLICK CREAMERY) ---------------------------------------------- 41
POSITIONING MAP------------------------------------------------------------------------ 42
TARKET MARKET ANALYSIS---------------------------------------------------------- 44
PRODUCT ------------------------------------------------------------------------------------ 46
PRICE------------------------------------------------------------------------------------------- 47
PLACE------------------------------------------------------------------------------------------ 48
PROMOTION--------------------------------------------------------------------------------- 49
WEBSITE-------------------------------------------------------------------------------------- 51
WORKS CITED-------------------------------------------------------------------------------------- 52
ARTICLES------------------------------------------------------------------------------------- 53
WEBSITES------------------------------------------------------------------------------------ 54
PROFESSIONAL INTERVIEWS -------------------------------------------------------- 56
CUSTOMER INTERVIEWS--------------------------------------------------------------- 59
3	
	
	
	
	
	
	
	
	
	
	
	
	
	
THE MARKETING ENVIRONMENT
4	
	
INDUSTRY POTENTIAL
The ice cream industry has a large opportunity for potential, especially as new consumer
preferences arise and large-scale shops fail to meet customer needs. Despite a demand for
healthier dessert options and the growing popularity of frozen yogurt and gelato, ice cream is still
America’s favorite dessert item (Website #14). The ice cream shop industry is a $12 billion
growing industry with an arising demand for creative innovation (Article #8).
The ice cream industry has won the hearts of Americans and has become the leading
staple dessert item and social event. People are always looking for an opportunity to celebrate, so
if a shop creates an atmosphere that cultivates celebration, the customers will come. A majority
of the industry is run by a younger demographic—whether it is a birthday, baseball game, or a
good grade, ice cream has become a leading form of celebration. Despite a consistent demand for
dessert shops, the industry has struggled to see growth in recent years. Health trends, the recent
emergence of frozen yogurt, and a drop in the economy have stolen ice cream sales in recent
years, causing concern for this industry. In 2009, Baskin-Robbins failed to meet their yearly
franchise expansion goal of 0.2% growth and other major contributors saw consistent declines in
expansion (Article #8). Baskin-Robbins sales dropped to $496 million from $570 million, Dairy
Queen, Cold Stone, and Ben & Jerry’s saw as much as 9.8% decreases in sales between 2009-
2014 (Article #8, Website #13). Cold Stone announced a 4.9% yearly sales decrease in 2009 and
has struggled to recover since (Article #8). Many of these publically held franchises are
struggling to remain where they once were, but the industry still appears promising.
While statistics of popular franchises show that American ice cream consumption is
likely down 45%, popularity in non-dairy and sorbet treats are soaring in popularity with a 46%
growth in 2013-2014 (Website #12). Artisanal brands have captured the imagination of
consumers and are taking over the industry. Small ice cream shops and privately held
manufacturers have pinpointed what consumers want: ice cream made with quality ingredients
(Website #13, Customer #3). Brands like Talenti, a privately owned gelato brand based out of
Minneapolis, are soaring, with pint sales of $30 million in 2013 overwhelming industry growth
(Website #13).
Studies show that 40% of American consumers will eat ice cream this week, just behind
coffee consumers at 47% (Website #13). The demand for ice cream continues to remain stable,
but customer needs are changing and franchises need to catch up. The frozen yogurt market
drove in $279-$485 million dollars between 2011 and 2013 (74% growth), while the ice cream
industry drove in $5.7-$5.9 billion (3.9% growth) (Website #17). The need for a sweet treat
remains, but the frozen dessert industry is changing quickly and large-scale ice cream franchises
may need to catch up before sales begin to melt.
Implications:
Starting an ice cream shop in the frozen desserts industry could prove incredible payoff right
now, if done correctly. Growth in frozen yogurt and gelato sales in recent years proves that the
industry does not lack a need for frozen treats. Preferences are simply changing. Research has
shown that there is a major gap in this industry. The popularity of small ice cream shops that put
more care and consideration into ingredients are soaring, but they lack the capacity to grow at a
rate of larger-scale franchises. The economy hit large franchises like Baskin and Cold Stone
hard, and they are struggling to recover sales growth after the recession.
5	
CURRENT TRENDS
In recent years, the United States has become more conscious of health risks and the
content of their foods. Elements such as organic products and the percentage of fat and sugar
content have caused consumers to become more aware of what they are eating (Customer #4,
13). In a 2011 study, 60.6% of Americans would prefer to eat organic foods to non-organic food
options (Website #9). Data indicates that over 78 million U.S. adults and 12.5 million children
are obese, and people are starting to listen to these statistics (Website #11). With increasing
media and cultural understanding of the implications of unhealthy eating, dessert experiences are
now approached by most adults with an element of guilt. According to 67% of US consumers,
health attributes are important for their deciding to choose certain foods (Website #12). With this
being said, most adults are shifting their thinking when deciding where and how they should
indulge in a sweet treat.
In the 1990s, the frozen yogurt trend invaded the frozen dessert industry with the self-
serve, mix-it-yourself frozen yogurt model (Website #17). In the past twenty years, more than
2,582 frozen yogurt shops have emerged in the United States with sales averaging at a 21%
increase each year (Website #13). However, researchers predict this trend will not last long.
Even at its height, frozen yogurt’s popularity is nothing close to ice cream’s sales (Website #13).
Regardless of the future of frozen yogurt, consumers want something different. Whether it is the
desire for lower fat and sugar options, a more personalized and self-served experience, or a
short-lived trendy experiment, consumers are raving about this new trend. IBIS World analysts
believe the frozen yogurt industry has capitalized on having a fun guest experience at a low price
(Article #8).
In addition to a cultural shift towards healthier eating and frozen yogurt, there is a
demand for a more entertaining dessert experience. In recent years, a shift towards trendier ice
cream shops has created a popular presence in the younger generation through social media and
celebrity experiences. Places like After’s Ice Cream, Honeymee, and Nitrogen7 are local shops
that have grown in popularity due to the unique experience and conversation pieces (Websites 6,
7, 8). Nitrogen ice cream, ice cream donuts, and honey-covered ice cream have proven to be
wildly popular, suggesting that the traditional ice cream franchise may not be cutting it. “Sterile”
or “impersonal” ice cream experiences are no longer enough for this new generation (Customer
#3). Of all the college-aged customers interviewed, the vast majority would choose a trendier
location over the typical franchise (CI #1, 2, 3, 4, 29, 31). The Millennial generation appears to
care more about the experience than past generations, indicating a need for change in the
industry.
Lastly, this industry is looking for creative flavors. While vanilla still remains America’s
favorite flavor, the emergence of new flavors and palettes is creating a desire for more thought
than simply a store-bought carton (Website #8). Visiting an ice cream shop is an experience, and
customers are beginning to crave a more unique and flavorful one (Customer #2, 3, 31). Studies
show that the most common purchase driver for ice cream in the US is flavor, at a nearly 70%
majority (Website #12, Customer #1, 2, 3, 5, 6, 9, 15, 19, 20, 22). Flavors ranging from salted
caramel, vegetable, and savory cheese and alcohol are opening the door to a more sophisticated
palate (Website #12). This category is the biggest opportunity for innovation and smaller stores
are starting to realize the possibility for industry growth.
6	
Implications:
The implications of the current trends show that entering a new market will require creativity.
Customers are looking for two conflicting elements: healthier options and more flavorful
experiences. While Americans are always looking for an opportunity to indulge in a sweet treat,
the trends of this industry prove that shops that provide positive eating experiences with healthy
and creative environments will stand out in their communities. Emerging interest in the trendier
shops, frozen yogurt, and healthier options clearly indicate a shift in this industry. As someone
considers entering into this market, factors of ingredients, atmosphere, culture, and experience
should be leading considerations. Customers now are expecting a personalized experience.
Whether this means adding their own toppings, choosing their own flavors through manual,
customer operated machines; it is the little things that matter to this industry. Being sensitive to
the health trends of this industry is crucial. Elements that will make people brand loyal will be
different for each demographic, but a common understanding of the health sensitivity and push
for creative thinking will set companies apart tremendously.
COMPETITIVE FACTORS
The ice cream industry is incredibly competitive. With the average American consuming
ice cream 1.6 times per week, ice cream has grown into a more than $12 billion industry, just
behind the coffee industry (Website #9). It is highly developed and large franchises consume a
majority of the industry. My focus is on the two direct competitors, Baskin-Robbins and Cold
Stone Creamery. Both shops offer sit-down and take out ice cream cone options. Ice cream
franchises such as Ben & Jerry’s and Dairy Queen are major national indirect competitors. All
these franchises represent over 56% of the ice cream industry (Article #8).
In regards to secondary competitors, purchasing ice cream from grocery stores takes over
75% of ice cream purchasing sales and is the leading industry competitor (Website #9).
Purchasing a carton of ice cream from the store is significantly cheaper than from a sit-down
shop and is much more convenient for families. It does not, however, offer the experience that
shops offer. In addition to grocery stores, emerging trendy ice cream shops have taken away the
college-aged and young adult demographic from mainstream ice cream franchises (Professional
#4). Local shops like After’s Ice Cream, Honeymee, and Nitrogen7 specialize in a more
experience-focused ice cream experience: these nitrogen-made, donut ice cream sandwiches, and
honey-covered ice cream shops have become very popular to the young adult crowd (Website
#6, #7, #8 Customer #2, 3, 6, 7, 8, 9, 10, 31).
Because of frozen yogurt’s appearance as being healthier than traditional ice cream, it has
become the local ice cream shop’s greatest competitor (Website #14, Article #8). Frozen yogurt
franchises and chains have taken away a large amount of business from ice cream shops because
they offer a healthier approach and a more personalized experience (Article #8). Additional
competitors in this industry would include any dessert option in the area: cupcakes, donuts, fast
food dessert menus, boba and shaved ice shops.
7	
Implications:
Starting a company in this industry is highly competitive but there is definitely a need in the
market for creative, healthy ice cream shops. The leading franchises in this industry have
demanded a large amount of consumer sales, but should not keep people from considering
starting new businesses. If a new player in the industry is considering starting a business, it is
important to know the needs of the consumers. If they can pinpoint a niche in the market for a
particular demographic, it will not be that difficult to succeed. Americans are dedicated to sweet
treats and are always looking for an opportunity to celebrate. Whether it is a birthday, a new job,
a date, or simply a reason to celebrate the end of a not-so-good day, ice cream shops continue to
be a celebrated necessity in society. This offers hope for my third product, especially during this
unique time in history. Addressing arising needs will be important to insuring success.
Understanding the ways my competition fails to meet needs is essential to creating a successful
third product.
TECHNOLOGICAL FACTORS
Technology has not played a major role in the ice cream shops industry in past years. In
regards to running a shop, it is expected that a shop would use technology like surveillance
cameras, cash registers, rewards cards, phone coupons, and the possibility of an online social
media presence (Customer #4). Customers do not seem to expect much in regards to technology
when they are comparing different ice cream locations. Studies do show that customers are
beginning to expect to use technology more often when ordering food (Website #16). Both my
direct competitors have their own phone applications, but both have poor reviews and little
traffic (Website #2, #3).
Some technologies that are currently being implemented in this industry include; mobile
cake ordering, iPad kiosks, electronic menus, social media incentives, data analytics,
computerized inventory, and rewards systems (Website #16). While customers do not currently
demand these technological advances, companies can definitely benefit from the use of these
factors to give them a competitive edge. Research shows that convenience is key for this
generation—especially Millennials (Article #1). If technology can be used to make the ice cream
experience faster and more specialized, it is likely that shops will see growth when they utilize
new functions. In the past years, digital amenities like online ordering and mobile payment have
gone from being futuristic extravagance to modern necessities for restaurant consumers,
especially in Millennials (Website #16, Article #2). When considering starting a new company, it
is important to exceed the demand for technological advances.
While the upfront technological investments appear costly for an emerging company, it
can make a major difference in saving time and drawing in customers. Choosing to invest in iPad
cash registers, new applications, and online coupons are small investments when you look at the
potential for profit. Southern California based liquid nitrogen ice cream is using technology to
create new gourmet flavors and ice cream textures. These new shops are emerging all over the
west coast and customers are lining up to try this unique ice cream (Website #17). While
technological factors are not necessary for a positive, delicious, ice cream experience, it can
leverage a company to address more customers and get the industry talking.
8	
Implications:
While small, mom-and-pop ice cream shops have continued to thrive despite a lack of
technological advances, emerging players in this industry should utilize new technologies.
Because we live in a technological age, stores that do not take technological factors into play will
likely suffer. It is simple to interact over social media with customers, thanking them for
choosing their store. Investing in technological advances such as iPad registers, electronic
menus, and rewards cards are simple ways a company can appear technologically involved with
the current generation. Studies are showing that Millennials are expecting to see technology in
the purchasing experience. Any opportunity to make the buying experience faster, more user-
friendly, and unique will set the player a part in the industry. While technology is not a
requirement for a successful ice cream shop, small factors can contribute to a more positive
buying experience. For my third product, I will take every chance I can to improve process
through data analysis and invest in technologies that will help customers remember the buying
experience.
POLITICAL & LEGAL FACTORS
Food contamination, allergies, and food-borne illnesses are a major legal factor in the ice
cream industry (Professional #16). Training employees to properly follow food laws and
regulations are crucial to avoid any customer illnesses and possibility for being sued. Before ice
cream hits the freezer, it must meet codified standards established by law in order to be
considered ice cream (Website #9). The possibility for customers suing because of health
allergies and requests will only increase over time. Properly training employees to handle the
foods is vital to avoid possible suing.
According to Alyssa Medd, a three-year industry professional, the legal implications of
employee hours and not overworking state laws were common themes throughout her career
(Professional #4). Managing employees who might face immigration troubles, situations of
employees misbehaving to customers, and unique situations between employees and owners are
important to keep in mind. Like any retail and food industry, owners run the risk of being sued
for injuries or problems with the store. America is referred to as “The Land of Lawsuits,” with
nearly 15 million lawsuits filed in 2011 (Website #18). Passing all handicap laws and structural
codes can avoid any trouble down the road in regards to your location. Being aware of how you
can avoid lawsuits are important when preparing to go into an industry.
Abiding by calorie listing laws through the FDA are essential as well. Increasing trends
towards more health conscious eating are only making this industry more at risk for lawsuits.
Insuring you have correctly labeled and measured ice cream scoops in order to provide a
customer with the advertised nutritional information can avoid lawsuit. According to the FDA
website, calorie and other nutritional labeling will be required for food establishments with more
than 20 locations (Website #19). Being sure that your establishment abides by these rules is
critical, so it is important to be aware of local and national laws. In addition to calorie and
nutritional listings, passing food law inspections becomes public information. On Yelp reviews,
customers can view the latest grade an establishment has received by the government in their
inspection (Website #1). In order to provide a positive image for your company, passing these
laws and tests is important to keeping a positive image for your location.
9	
Implications:
Opening a new restaurant or food service company offers a great amount of legal risk. In the ice
cream industry, this implies an awareness of food and service laws. Before starting my company,
I would create a binder of all the current laws and regulations in regards to food service, calorie
listings, employees, facilities, and contamination. Insuring that my employees are well trained
starts from the top, so it will be important to me that my facility is clean, well managed, and
passes all national codes. I would hope that my company would not face any lawsuits, but in the
case that this did happen, I would be sure to have a trusted lawyer ready to guide me through this
process.
SOCIAL & CULTURAL FACTORS
Some of the current social and cultural factors that relate to this industry are health
concerns, convenience, price, a desire to stand out and be unique, and a need for acceptance.
Many professionals I have interviewed mentioned that their time in the industry has only brought
more of an emphasis towards healthier eating (Professional #2, 3, 4, 6). The rising popularity of
frozen yogurt has indicated a desire to pursue healthier, low-fat options. One customer, when
asked what he considers before visiting an ice cream shop, admits that he recalls when he last
worked out when deciding what shop to go to (Customer #4). Coming out of a recession, our
generation places a higher emphasis on money than past generations (Article #3). Despite this
trend, a majority of interviewed customers admit that they do not put a considerable emphasis on
the price of ice cream, “Most ice cream is about the same price and I can expect to spend around
the same price on all ice cream so it doesn’t affect me much” (Customer #1). However, other
customers admitted a desire to go to certain shops because of a rewards card or coupon
(Customer #2, 4, 29).
Convenience is a major factor in our generation. The location, speed, and availability of
products are essential to this generation. Baskin-Robbins locations are putting considerable effort
into the convenience of their locations, by recently opening kiosk locations in airports, malls, and
universities to cater to a more fast-paced generation (Article #1). Our generation is also unique in
that it demands a need for acceptance. The need for social acceptance and quality time with
others is essential in caring for family and friends. Coffee dates, hanging out, and doing social
activities are a common part of society, and social media is only increasing this desire for social
acceptance (Article #4). Fitting in is essential for youth and they care deeply about the latest
trends.
These elements all impact the ice cream industry. Whether it is a growing desire to eat
healthier foods, connect with people, fit in through outlets like social media, and a growing sense
of busyness in society, all are shaping how and why people choose ice cream. Luckily for this
industry, the need for ice cream will likely never diminish. According to a Cold Stone ice cream
scooper, no matter what society and culture says about the health factors of ice cream, “People
will always make an excuse for a cheat day” (Professional #1). Whether it is celebrating a good
day, wishing you had a better day, or sampling wishing to spend time with someone you love, ice
cream is always a fitting excuse to celebrate life.
10	
Implications: When considering my entrance into the industry, it is important to be aware of the
social and cultural factors that are mentioned above. Society is often changing and being aware
of the needs—whether psychological, health-related, or a need for creativity—there are ways to
address these needs. Friendly workers, putting care into the ingredients, creating systems for
rewards and coupons, as well as taking the time to interact through social media with customers
will allow me to interact better with my customers.
CONSUMER BEHAVIOR FACTORS
The following factors exist in people making decisions to choose particular competitors in the
industry.
1. Specific flavor of ice cream (CI#1, 2, 3, 5, 6, 9, 15, 19, 20, 22)
2. Proximity to other locations (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12)
3. Welcoming environment (CI #2, 3, 5, 18 PI #3, 13)
4. Dietary restrictions (CI #2, 4, 5, 6, 7, 17 PI #2, 4, 5)
5. Affordable price (CI #1, 13 PI #5)
6. Cultural trendiness (CI #1, 2, 3, 4 PI #4, 9)
7. Nostalgia (CI #1, 3, 4, 5, 16)
8. Product customization (CI #1, 13 PI #4)
9. Friendly employee interaction (CI #1, 3 PI #2, 5, 7)
10. Unique Experience (CI #2, 3, 17 PI #2, 9)
11. Personality of shop (CI #2, 3)
12. Large serving size (CI # PI #4)
13. Organic options (CI #4, 6, 7, 9 PI #3, 8)
14. Health conscious (CI #4, 6, 7, 9, 17 PI #2, 3, 4)
15. Kid friendly (CI # 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 20, 22 PI #3, 5, 8, 10)
16. Provides celebration (CI #1, 19)
17. Creamy texture (CI #1, 2, 5, 6, 7, 8, 9, 15, 21, 26 PI #5)
18. Creativity in flavors (CI #1, 2, 3, 5, 11, 12, 22 PI #10)
19. Seasonal weather (CI #4 PI #5, 11)
20. Color of ice cream (CI #10, 12, 22 PI #10)
21. Social outing (CI #2, 3, 13, 16, 19, 26 PI #2)
22. Promotions (CI #29, 11-14)
Implications:
Customers care about the little things, but the big things are what get them in the store. Kid
friendly and creative options were two wildly popular reasons customers choose different ice
cream options. Know why customers choose certain shops helps understand the niche in a
marketplace. In the case of the ice cream industry, knowing what draws certain customers into
the shop helps understand how we can improve and achieve a more specific third product. By
knowing that customers are looking for kid friendly and accessible options, I can cater to these
needs more specifically. Certain elements of the decision process that I expected would be
leading behavior factors were not as popular as I was expecting them to be—atmosphere,
personality of shop, and environment. It is important to keep in mind what really gets customers
into your shop.
11	
COMPETITTOR #1:
BASKIN-ROBBINS
12	
POSITIONING MAP #1
Baskin-Robbins offers highly processed ice cream that is frozen and distributed to thousands of
locations around the country (Article #7). Customers do not associate their product with having
fresh ingredients (Customer #1, 2, 3, 4, 5, 17, 18, 19, 21, 27, 28). The highly processed, frozen,
and preserved product is clear in their shipped tubs and the way in which they are displayed for
customers (Customer #15). The Baskin-Robbins experience involves choosing your flavor and
sitting down. There is a lack of creativity and experience has affected customers in a changing
market of choosing flavor and toppings in the frozen yogurt trend (Article #10, Customer #28).
Creative	Experience	
Simple	Experience	
Fresh	Ingredients	Highly	
processed	
	
A à Cold Stone
B à Baskin-Robbins
C à Yogurtland
D à Honeymee
A	
B	
C	
D
13	
POSITIONING MAP #2
Baskin-Robbins appeals to children and has a variety of cotton candy and colorful flavors. Kids
are looking for a reason to celebrate and research shows that parents are looking for kid-friendly
options for dessert locations (CI # 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 20, 22 PI #3, 5, 8, 10).
Baskin is great for both adults and children because they offer classic flavors but also wild cotton
candy flavors. Customers are looking for seating and an inviting atmosphere. Baskin-Robbins
does not have an abundance of seating for busy times—their locations are both small and are not
designed for large groups of customers.
Always	Enough	Seating	
All	About	
Kids	
Hard	To	Find	a	
Place	to	Sit	
All	About	
Adults		
A à Cold Stone
B à Baskin-Robbins
C à Yogurtland
D à Honeymee
A	 B	
C	
D
14	
PRIMARY TARGET MARKET ANALYSIS
1. Primary Benefits: I ranked primary benefits first because Baskin-Robbins has offered many
benefits that set them a part from other shops. What makes Baskin-Robbins so special is the
benefits they offer for their customers.
1. Options (31 flavors): customers are able to choose the flavor of ice cream they want.
Sherbet flavors and non-dairy options are available as well.
2. Consistency: there are 6,000 Baskin-Robbins locations around the world. Customers
know the Baskin name because it has a consistent presence around the world (Article #7).
3. Samples: customers are able to try the ice cream in front of them until they find
the perfect flavor.
4. Nostalgia: customers feel like they are kids again because of the bright colors, variety
of options, and child-friendly decorations.
5. Inexpensive: Taking a large family out to ice cream would not break the bank.
2. Primary Geographic: People are not willing to drive very far for their ice cream and research
has shown that customers looking for an ice cream will consider what is closest first (Article #7).
Customer interviews proved that location was the major deciding factor in choosing this location.
1. Walking distance to homes: Families ride bikes to location to enjoy family time
(C.I. #11-15, 16)
2. Close to sporting activities: Parents take children after soccer game at nearby field
(C.I. #16)
3. Proximity to competition: Having other ice cream shops in the area takes away from the
business.
4. Visible from a busy road: Locations on busier areas create more customer traffic.
3. Primary Psychographic: This is ranked third because the values of this company can be
channeled in a variety of different ways. People can celebrate at a number of different shops, not
just ice cream.
1. Family is very important
2. Good morals
3. Quality time
4. Indulging
4. Primary Demographic: I ranked demographic last because Baskin-Robbins is appealing to a
fairly large demographic: young families and older adults. Baskin-Robbins caters to children
ages 3-11 and adults ages 50-90 from a variety of ethnicities. These children come with their
parents who are lower to middle class and are interested in an inexpensive treat for their children.
The first picture on the website is of a children’s birthday cake and photos of middle-aged adults
from a variety of ethnicities (Website #3). Baskin has highlighted the importance of diversity in
their in-store decorations online advertising (Professional #6).
1. Families with children ages 3-11 (C.I. #11-15)
2. A variety of ethnicities (Website #3)
3. Lower-middle class
4. Price conscious customers (C.I. #11-15)
15	
PRODUCT & CUSTOMER EXPERIENCE
Product Objective: Baskin-Robbin’s objective is providing an affordable, delicious ice cream
option to customers of all ages. Providing a variety of flavors for all the customers as well as a
variety of different milkshake and cake options creates a place for a low-cost treat for families
and people of all ages. Specific objectives in developing this product for Baskin-Robbins
include:
1. A variety of flavors (Customer #11-15)
2. Affordability (Customer #11-15)
3. Kid-friendly (Professional #3)
Product Strategies: Baskin-Robbins separates itself from the competition by providing an
affordable and simplistic ice cream experience at a variety of locations. Their product consists of
frozen tubs of ice cream that can be ordered in a variety of ways—single scoop cones, bowls,
milkshakes, or splits (Professional #10). The Baskin product is an experience and a delicious
treat. Customers are looking for a place to enjoy another’s company, a destination to bike or
walk to, and a reason to celebrate. The bright decorations and branding communicate of nostalgia
and child-like joy (Customer #27). The emotional connection of a colorful ice cream shop is a
major part of their technique. Customers know they will find and ice cream flavor that will suit
their cravings, whether young or old (Customer #11). Baskin products are frozen and shipped
around the country, which allows them to sell their product for cheaper.
Baskin-Robbins operates more that 7,100 retail stores worldwide, with 2,500 stores in 43
states (Article #8). They are famous for their 31 flavors slogan and the belief that customers
should be able to sample their own flavors. Their stores sells ice cream, sundaes, parfaits, pre-
packed tubs, cakes and beverages to customers (Article #8). Baskin-Robbins is always creating
new flavors and since 1945 has introduced over 1,000 flavors to their stores. The strategy of
allowing customers to see their options displayed by flavors in display allows the customer to
develop a real sense of pride in selecting their ice cream flavor. People like choosing their
products (CI #1, 13 PI #4). Baskin-Robbins stands by their passion of providing a consistent
ice cream shop around the country. Their thousands of locations communicate a steadfast
commitment to providing a place to celebrate. Their product is simple and easy—tubs of ice
cream are delivered pre-packaged and them sold to customers in scoops, sundaes, or milkshakes.
They offer a variety of gluten-free and dairy-free options for their customers, appealing to the
increasing demand for more health-conscious and dietary-sensitive needs (Article #8).
Unlike Cold Stone, customers are able to purchase a large amount of ice cream for a
fairly affordable cost. Their product appeals to a younger crowd, but also fulfills the needs of
parents as well (Customer #13, 14). They display their flavors so you know what you are
choosing from—a menu is hardly necessary (Customer #28). Unlike other stores, Baskin-
Robbins aims to appeal to a younger crowd with their decorations and music choices
(Professional #10).
16	
Product Strengths:
• Most affordable ice cream shop (Customer #13).
• Variety of flavors (Customer #11, 12)
• Cakes, milkshakes, and splits expand menu and give more options (Article #8)
• Kid-friendly decorations and flavors (Customer #12)
• Locations are convenient and near populated areas (Customer #14, 15)
• Offers specific dietary restrictive needs (Professional #10)
Product Weaknesses:
• Ice cream flavor and texture is not as rich a delectable as other competitors (Customer
#15).
• Lacks freshness and did not add to the ice cream’s taste (Customer #14).
• Lack of seating, updated decorations, and a more cleanly feel (Customer #1).
• Cones are not as fresh and delectable as competitors #1.
• Cakes are poorly made and overpriced (Customer #5)
• Struggled to pass inspection for cleanliness (Website #1).
• Customer service and friendliness is low (Website #4, 5, 17, 18)
• Only one employee working at a time (Customer #5)
• Cakes are poorly made and “unappetizing.” (Customer #5)
PRICING ANALYSIS & DISCUSSION
Pricing Objectives: Baskin-Robbins meets the “low end of meeting competition” pricing
strategy by serving a variety of affordable product while still obtaining a positive experience.
Pricing Strategy: Baskin-Robbins has a strategy of providing an ice cream experience with a
sit-down feel for a fraction of its high-end ice cream shop competitors. Because of Baskin-
Robbin’s consistent name and highly developed manufacturing techniques, they are able to
charge lower than normal industry prices for their ice cream while still allowing an impressive
margin. Like the rest of the industry, low price industry production allows the company to charge
cheaper prices for their ice cream (Article #5). Unlike Cold Stone, Ben & Jerry’s, and
Honeymee, Baskin utilizes the cheap production costs of making ice cream to appeal to their
customers with a low cost. Their lower-than-industry average prices makes customers more open
to the option of choosing this location over other competitors. If Baskin-Robbins were to
Baskin-Robbins Cold Stone Industry Average
Single Scoop $2.79 $5.00 $3.22
Double Scoop $3.99 $5.25 $4.35
Take Home Quart $5.99 $8.00 $6.33
17	
increase its prices by 20%, it would mean that a scoop of ice cream would be around $3.99 a
scoop. Customers did not indicate an overwhelming preference at the cost of their ice cream, but
the product that Baskin-Robbins offers is likely not equivalent to an above industry average price
(CI #1, 13 PI #5). It is likely that driving up the price would drive customers away to less
expensive competitors like fast-food ice cream options or to a more quality product at a similar
price.
Pricing Strengths:
• A wide range of flavors with a simple ice cream concept offered at a cheaper price than
most of the competitors in the ice cream shop industry (CI #1, 13 PI #5).
Pricing Weaknesses:
• Lower pricing may communicate a lower product value and could cause customers to go
to a higher-end competitor for a small percentage increase in cost (CI #1, 2, 3, 4 PI #4, 9).
PLACE ANALYSIS & DISCUSSION
Place Objectives: Baskin-Robbins locations are typically found in strip malls, near other food
options, and in busier areas of cities. Their locations are typically found in highly populated
suburbs, malls, and airports. The objective of this location is to be convenient for their target
market.
Place Strategy: Baskin-Robbins is a convenient sit down or take-home ice cream location that
provides a place for people to enjoy a social gathering with friends and family (CI #2, 3, 13, 16,
19, 26 PI #2). People who visit Baskin-Robbins are hoping to socialize and enjoy the company of
others. It is important for their location to be near their target market. For them, this means being
located near a busy street, in a highly populated suburb, and near sporting events and schools.
Customers indicated that location was a major factor in deciding where they would indulge in a
tasty frozen treat (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12). Customers do not likely go
out of their way to visit a Baskin-Robbins. Instead they go to them because they are near a
18	
baseball field, within biking distance of their house, or close to a school (CI #5, 11, 12, 13, 14,
15, 18, 21). Baskin exclusively sells their product in their store, which results in more of a desire
for their product. It is likely that if they were to offer an option in grocery stores or other
locations that it would lose its value.
A majority of the Baskin experience takes place in the process of sitting down with
friends and family to enjoy time with them. Customers came in groups, flocking to tables in
hopes of discussing various topics of their day’s events, the latest school gossip, or simply just
enjoying someone’s presence. Baskin does not currently offer a drive-through or delivery option.
This is largely to do with its emphasis on experience. Creating an emphasis on speed would take
away from a primary customer decision-maker – time and experience (CI #2, 3, 13, 16, 19, 26 PI
#2). Additionally, there is an element of keeping the ice cream cold and the product that could
take away from their image. Additionally, the presence of different competitors has a major
impact on the location of this particular store. Surrounding food stores and the fact that they are
the only ice cream shop in the strip mall brings customers into their stores. They have a variety
of close competitors within 3 miles of them, including other Baskin locations, Honeymee, Cold
Stone and Yogurtland
Baskin-Robbins is strategically placed near a busy road, middle schools, baseball fields,
and in a densely populated suburb. They are appealing to their target market by creating a
convenient location. They are open late at night and closed early in the morning to appeal to the
convenience of people hoping to celebrate late into the night (Professional #10, Website #3).
Place Strengths:
• Walking distance to homes: Families ride bikes to location to enjoy family time (C.I.
#11-15, 16)
• Close to sporting activities: Parents take children after soccer game at nearby field (C.I.
#16)
• Visible from a busy road: Locations on busier areas create more customer traffic.
• Open late at night
Place Weaknesses:
• Proximity to competition: Having other ice cream shops in the area takes away from the
business (Professional #10)
• Strip mall is not very busy and is run down (Professional #6)
19	
PROMOTION ANALYSIS & DISCUSSION
Promotion Objectives: Baskin-Robbin’s current promotional objective is to evoke behavior and
stimulate demand. They are aiming to lure in customers through promotional events and
discounts, advertisements, and new flavors. Baskin-Robbins has a nationwide presence, so their
promotional objective is to get customers who know their name into their stores to purchase
products.
Promotion Strategies: Baskin-Robbins aims to evoke behavior and stimulate demand through
the use of coupons and promotional rewards. Baskin-Robbins launched a campaign this year
called the “Celebrate 31” promotion, where $1.31 ice cream is offered each month with 31 days
(Website #3). Customers come to Baskin-Robbins because of their “Dollar Scoop Tuesday”
promotional events (Customer #5). They offer online coupons and promotions through their
website, including special email offers and cake discounts. You can sign up online to be a
member of their Birthday Club, where you can get a free ice cream on your birthday (Website
#3). Baskin-Robbins knows that customers use ice cream as a form of celebration and social
events; some customers only visit the shops a few times a year (Customer #12, 14, 28). In order
to stimulate long-term customers, Baskin participates in advertisements that get the nation
talking in order to stimulate sales and demand. They use their Twitter and Facebook pages as a
platform to announce specific promotions and giveaways (Website #3). Baskin relies on word of
mouth to make these promotional events a success, but does not do so to create long-term
customers. Instead, customers are reminded of the company’s presence through these events and
return if they have a positive experience (Professional #10).
In regards to their national promotional presence, Baskin-Robbins has created a variety of
successful commercials that get customers talking. In 2011, Baskin released an ice cream cake
commercial with the catchy lyrics “Ice cream and cake do the ice cream and cake (Website #21).
This in addition to a variety of other Mothers Day and Fathers Day commercials have
encouraged customers to purchase cakes to celebrate different occasions. Baskin-Robbins also
partners with Party City to create a brand continuation in regards to their birthday cakes (Website
#3).
The primary intent of Baskin-Robbin’s message is that they are affordable and they are
always present. The consistent promotions and events are a great reminder to customers that they
offer an affordable product and a great opportunity to celebrate any life event. Signs outside of
their doors, on Beach Blvd., and advertisements on the windows for their “Celebrate 31
promotion” give customers the idea that Baskin is looking for a way for them to save money
while still celebrating. Customers revealed that they are looking for that, too—affordable and
delicious is hard to say no to (CI #1, 13 PI #5).
Unlike competitors like Cold Stone, Yogurtland, Ben & Jerry’s and Honeymee, Baskin-
Robbins is always looking to remind their customers that they are present through the use of
promotional discounts. While this does drive conversation regarding their product, it does lower
the brand image and make the product appear lower quality to customers (Customer #4, 28).
20	
Promotion Strengths:
• Frequent promotional options bring customers in (Customer #28)
• Customers know they kind find ice cream here for less than more expensive competitors
(Customer #13)
• National recognition and promotional discussion brings customers into their stores
(Customer #12-16, 28)
• Commercials that draw attention to ice cream cakes (Website #21
Promotion Weaknesses:
• Signage could be improved for the La Mirada store to improve visibility from busy road
(Professional #6).
• Brand image and quality of product might be lowered because of the emphasis on
promotion and saving money (Customer #28,
• Too many promotional advertisements and decorations can be distracting and cluttered.
One interviewed customer mentioned they are embarrassed to go to shop because of
outdated and cluttered promotional advertising (Customer #4, 16, 17, 18)
WEBSITE ANALYSIS & DISCUSSION
Website Objectives: Bakin-Robbin’s website objective is to inform customers about what they
offer customers, promote their different products, and inform customers on where they can get
their products. The goal of their website is to convince customers to purchase their products and
promote the products that customers would not necessarily consider purchasing. Their website is
all about promoting who they are and how customers can get on board—whether that is through
promotions, online ordering, or opening up a new franchise (Professional #6). Baskin-Robbin’s
corporate website is found at: https://www.baskinrobbins.com/content/baskinrobbins/en.html
The company also has an application that is downloadable to mobile devices. Reviews can be
found on Yelp: http://www.yelp.com/biz/baskin-robbins-la-mirada-2
Website Strategies: The Baskin-Robbins website brings value to its customers because it aims
to make their product more appealing to customers. Whether it is through pictures of different
cakes, explanations of different flavors, a customizable cake ordering system, or looking up
where the nearest location is, their website exists to make their product more accessible and
appealing. The first thing that customers notice when visiting their website is their unique logo
and headings (Ice cream, cakes, the scoop, online ordering, and find a shop). The website
highlights a photo reel of four different shots of their products, whether they are cakes,
promotions, ice cream, or a flavor of the month.
These pictures help customers remember the delectable dessert options being offered and
inform them of new promotional opportunities. The website is also convenient because it has an
option for finding shops, learning more about the company, exploring the option of franchising,
and even ordering customizable cakes. The customizable cake option is interactive and creative,
allowing customers to choose exactly what they want and then allowing a delivery to their
preferred shop. The Baskin-Robbins website also has an account option where you can sign up
for promotions and interactive discounts. While their website fulfills a variety of needs due to its
corporate nature, it does appear impersonal and bland (Professional #6). While it seeks to interact
21	
with customers and fulfill informational needs, it is clear they are hoping to earn your business,
not meet your needs through clear information pathways and background regarding their store.
As far as La Mirada’s specific location, very few steps are being made to interact with
local customers online. While there is a Facebook page created for this specific location, it is not
operated by the owners. Customers use Facebook as a place to track where they have been
through social media tagging. Additionally, Baskin-Robbins La Mirada does not have an online
presence outside of Yelp. By choosing to interact with customers in the area through social
media, they could create more of a traffic flow into their location.
Website Strengths:
• Website has interactive personalization options for making cakes
• Represents their brand and displays their product well
• Offers promotional discounts and opportunities for free ice cream
• Answers questions regarding corporate franchising while also appealing to customers
Website Weaknesses:
• Promotional heavy and very clear they are hoping to earn your business rather that
answer questions you might have if you were a customer looking to answer basic
questions (i.e. where is the nearest shop, how is the product made, different flavor
options).
• Navigating the site can be difficult because there is such an abundance of information
being communicated.
• Impersonal and does not give customers a place to give feedback
• Customers with complaints go to Yelp and Baskin does nothing to address these concerns
22	
COMPETITOR #2:
COLD STONE CREAMERY
23	
POSITIONING MAP #1
Cold Stone offers an element of creativity and customization, both of which customers enjoy (CI
#1, 13, 28, 29, 30). While customers are looking to indulge in a sweet treat, they are also aware
that the product is highly processed and the mixtures are distributed throughout the country
(Customer #1, 3, 3, 4, 13, 14, 15, 28 Professional #11, 12). The product is mixed in the stores,
but the formula is shipped throughout the country and lacks freshness (Article #8).
Creative	Experience	
Simple	Experience	
Fresh	Ingredients	Highly	
processed	
	
A à Cold Stone
B à Baskin-Robbins
C à Yogurtland
D à Honeymee
A	
B	
C	
D
24	
POSITIONING MAP #2
Cold Stone appeals to a more adult environment with their abundance of rich and creamy
desserts. Kids often are looking for cotton candy and colorful options, something Cold Stone is
lacking in (Customer #12, 13, 21 Professional #11, 12). Customers also complained about a lack
of seating during busy times. A majority of customers attend ice cream shops in order to fulfill a
social need. Not having enough seating is a major deterrent for customers and this appears to be
the case for this particular shop (Customer #20).
Always	Enough	Seating	
All	About	
Kids	
Hard	To	Find	a	
Place	to	Sit	
All	About	
Adults		
A à Cold Stone
B à Baskin-Robbins
C à Yogurtland
D à Honeymee
A	 B	
C	
D
25	
PRIMARY TARGET MARKET ANALYSIS
1. Primary Geographic: I ranked primary geographic first for Cold Stone La Mirada because it
seems to be the leading reason why customers choose this shop. They are located in a strip mall
with proximity to the La Mirada Dollar Theater, Panera, La Mirada theatrical center, Biola
University, and a densely populated suburban area. When professionals at Cold Stone were
asked what the number one reason people came to their store they believed the movie theater and
proximity to other food places brings people there for social events.
1. Proximity in strip mall to other food places (Panera, Starbucks, Thai Cuisine)
2. Proximity to theaters: La Mirada Dollar Theater and the La Mirada theater for the
performing arts (Professional #7, 8)
3. Proximity to Biola University (Customer #1-5)
2. Primary Benefits: I ranked primary benefits second because the unique experience is what
sets Cold Stone apart from its competitors. Next to location, the benefits that Cold Stone offers
its customers are what brings them into their store. Because Cold Stone addresses a wide
demographic and psychographic, their product appeals to a large crowd and having a variety of
specific benefits is important for their company. What brings customers into Cold Stone is the
desire for a luxury ice cream—a benefit not many of their customers can address.
1. Creamy, rich, luxury ice cream (Professional #5)
2. Interactive experience
3. Choosing a variety of flavors and toppings
4. Creative “love it” “like it” options for sizing
5. Hand crafted waffle cones
6. Displayed ice cream flavors
7. Fruit options
3. Primary Psychographic: The psychographic section is ranked third because there are a
variety of different types of people who enjoy the product Cold Stone offers. When asked, Cold
Stone employees said a variety of their customers were families, teenagers, and adults. The
psychographic of the La Mirada branch is closely connected to its location and the geographic
elements that bring customers into their store. The values of these customers are commonly
related to a broader value for spending quality time with family and friends. Celebration is
another major element that brings customers into Cold Stone. I ranked psychographic third
because there are many ways customers could choose to celebrate beyond Cold Stone. Many
different values bring customers into Cold Stone locations that could be fulfilled in a variety of
other options.
1. Luxury ice cream
2. Spending quality time with family and friends
3. Celebrating
4. Morals
5. Trying creative flavors
6. Indulgence
7. Spending extra money for a more quality product
26	
4. Primary Demographic: Demographic is listed last because Cold Stone seeks to reach a larger
group of people. Anyone who likes delicious ice cream is the primary demographic of this
product. People from all races, ages, and genders enjoy ice cream. This does not mean, however,
that specific demographics do not tend to be more likely to visit Cold Stone shops. Cold Stone
appeals to a more mature audience than Baskin-Robbins due to a more mature branding
technique and a richer texture and flavor options. Male and female 16-35 year olds that are white
are most likely to attend this particular location.
PRODUCT & CUSTOMER EXPERIENCE
Product Objectives: Cold Stone’s product objective is to create a premium frozen dessert option
with customizable toppings that appeals to customers looking to enjoy a social outing with
friends and family.
• Creamy and delicious frozen treat (Customer #1, 3, 5, 17, 18, 19, 20, 28)
• Customizable (Customer #28)
• Unique experience (Customer #18, 19)
• Create a higher-end experience than competition (Customer #4)
Product Strategies: Cold Stone prides itself in being the “Ultimate ice cream experience”
(Website #2). They separate themselves from the competition by providing a premium product at
a premium price. The product was developed in 1988 and they sell ice cream, prepackaged
cartons, cakes, pies, shakes, smoothies, frozen yogurt and sorbet (Article #8). The Cold Stone
product is directly connected to the experience of choosing and developing what the customers
wants. While they offer a variety of different products, a majority of customers are looking for a
single scoop customizable treat (Professional #2). Customers begin by walking in and identifying
what they want their standard ice cream flavor to be. Customers can choose a pre-selected
product from a menu or customize their dessert to fit their exact customization needs. A unique
strategy that Cold Stone uses is that they allow the customer to choose exactly what they want
and they get to watch the process of their creation come to life in front of them through the
handcrafted process of a granite slab. Everything that is made, from cones to ice cream, is fresh
and handcrafted (Professional #5). Cold Stone is the creamiest ice cream in the industry and they
deliver a premium product.
Cold Stone customers are looking for delectable culinary experience. Customers of Cold
Stone are committed to the treat being made in front of them and are willing to spend premium
money and calories to experience what their unique dessert has to offer. Employees begin by
asking customers what flavor they would like, then they mix the various toppings on a granite
slab and place it in either a “like it” “love it” or “gotta have it” bowl. Employees are trained to be
friendly and engaging—whenever a customer tips the employees, they are asked to sing a song
for the customers (Article #5, Professional #2).
When customers walk into the store, they are immediately surrounded by rich colors and
textures. The rich red paint and chocolate posters and menus highlight the product itself,
displayed for customers to see. Their compelling advantage to the customer is just this—they
exist to serve the customer’s sugary needs at a premium level. The ice cream is creamy and
fresh, displayed in stainless-steel tubs rather than pre-shipped tubs of already made ice cream.
Professionals hand make the waffle cones each day. Ice cream cakes are hand crafted with rich
decorations and displayed in refrigerator cases in the front of the store. The emotional connection
27	
for customers is completely directed in the food that they are eating—the creamiest, richest, most
delectable ice cream in the market that is made just for you.
Unlike competitor #1, Cold Stone has created a product image and experience that
communicates premium value and indulgence. Cold Stone appeals to a more adult audience with
its customizable and delectable creamery options. Everything from their cones to their ice cream
cakes are handcrafted with the customer in mind.
Product Strengths:
• High brand image is communicated to customers through their creamy ice cream and
premium product (Customer #1, 3, 5, 18, 19, 20)
• A variety of topping options and flavors (Customer #1, 5)
• Fresh ingredients displayed in stainless steel cases (Professional #6)
• Waffle cones made daily (Professional #2)
• Employees are friendlier than competitors and sing for customers (Professional #1
Customer #19, 20, 21, 28)
• Nostalgia for many customers because they grew up going to shops around the country
(Customer #3)
• Trendier than competitor #1 (Customer #2, 3, 4, 27, 17, 18, 28)
Product Weaknesses:
• Seating is lacking (Customer #24)
• Unhealthy and rich (Customer #5, 6, 10, 28)
• Very few kid options and not as kid friendly (Customer #13, 14, 16 Professional #8)
• So creamy and rich it makes people’s stomachs hurt (Customer #2, 5)
• High price for a small cup of ice cream (Professional #5)
• Few sorbet options and doesn’t cater to dietary restrictions (Customer #2)
28	
PRICING ANALYSIS & DISCUSSION
Pricing Objectives: Cold Stone’s objective is prestige—they price high in order to communicate
that their product is the best in the industry. If they marketed their ice cream as being one of
quality and the best in the industry then failed to communicate that with their pricing, it would
likely create an inconsistent message for the customers. Cold Stone has taken the unique
objective of communicating that their ice cream is made with quality and is worth the extra
money spent. A family going to Cold Stone would likely be spending $20 more than they would
if they went to the grocery store and bought a carton of ice cream. Creating a premium product at
a premium price is what sets them apart in the industry.
Pricing Strategy: Cold Stone wants to make it clear to their customers that they take their ice
cream seriously. Charging more money for their product can create the illustration that they put
the extra money into their product to get a better product for their customers. Cold Stone takes a
unique strategy of presenting three different sizing options: “Like it” “Love it” and “Gotta have
it.” This unique naming strategy communicates an encouragement to invest the extra money to
get a little more. The $0.25 price difference between the “like it” and “love it” is another
encouragement for customers to put in a little more money to get a lot more ice cream. Cold
Stone has used this unique marketing strategy to convince customers that they are getting more
for their money. The main goal for Cold Stone is to sell more ice cream. Convincing customers
that they are getting a gourmet product and convincing them to spend a little more for a lot more
product shows that they are interested in creating a premium product for their customer. Behind
Ben & Jerry’s ice cream, Cold Stone sells the most expensive product in the industry (Website
#20). Interviewed customers were aware of the high expense of this product as well. Many said
they only purchase Cold Stone ice cream 3-4 times a year, but when they do it is a major treat
and expense (Customer #1, 3, 4, 5, 14). One customer even said that they go to a certain shop
with certain friends if he knows that they are wealthier because he doesn’t want to make his
friends spend more money than they want. Cold Stone has clearly communicated that their ice
cream is premium and customers have caught on.
Baskin-Robbins Cold Stone Industry Average
Single Scoop $2.79 $5.00 $3.22
Double Scoop $3.99 $5.25 $4.35
Take Home Quart $5.99 $8.00 $6.33
29	
Pricing Strengths:
• Incredible margins because of their premium pricing (Article #8).
• “Like it” “Love it” “Gotta have it” sizing technique
• They have marketed themselves as being a leader in the industry because they charge
more for their ice cream than most and customers respond with a high respect and
appreciation for this delectable product (Customer #4, 5, 18, 19, 20, 23, 28).
Pricing Weaknesses:
• High end of the pricing scale—1.8% higher than the industry average (Professional #6)
• Incredibly rich and unhealthy (Customer #2, 5, 20).
PLACE ANALYSIS & DISCUSSION
Place Objective: Cold Stone La Mirada’s place objective is to provide a convenient location for
their customers with proximity to highly populated suburbs, other eateries, theaters and Biola
University. Cold Stone locations around the country are typically in malls, shopping centers, and
near other eateries. Cold Stone was trying to accomplish a location near their target market—
customers looking to celebrate on the weekend or weeknights after a movie, on a date night, or
simply close to a populated area.
Place Strategies: Cold Stone makes their product available to customers by advertising their
sign from Rosecrans Avenue. Customers can see their sign from this busy road and from La
Mirada Dollar Theater, so it allows customers to understand their options before or after a movie.
Cold Stone is within close proximity to Biola University, La Mirada Dollar Theater, La Mirada’s
Center For Performing Arts, Panera Bread, La Mirada Park, and four densely populated suburban
communities. They strategically have chosen to keep their stores open later because they know
their customers are looking for a late night reason to celebrate (Website #2). Most of their target
market is working during the day, so they have chosen their hours to be 12pm-10pm Sunday-
Thursday and 12pm-10:30pm Friday and Saturday (Website #2). Customers getting out of
30	
movies late, looking for a late night adventure, or have just finished a play at the Performing Arts
Center are looking for a treat late at night (Professional #8). Cold Stone does not have any direct
competitors in their shopping center, a strategic move to get customers from the surrounding
theaters and eateries to only choose them for a dessert choice. Surrounding high schools and
university students choose Cold Stone as a great place for social outings in the evenings and
afternoons (Customer #28).
If Cold Stone were to move their location two miles away from their current location it
would likely cause them to lose business because of the various surrounding establishments that
currently bring in customers. Cold Stone would do well in a shopping mall, but would need to be
near surrounding activities such as movie theaters and shopping centers to bring in the customers
they currently see. While the current location of Cold Stone La Mirada is doing well, choosing a
larger location with more seating would likely drive in more business for their company
(Professional #8). Changing the way they deliver their product by creating a more convenient
means (Drive through or stand) would likely take away from their image of being a sit-down ice
cream experience (Article #4). While their location is centrally located to a variety of
establishments that draw customers in, choosing to place that makes their location stand out
could prove more beneficial for Cold Stone.
Unlike Baskin-Robbins, you can see Cold Stone from a busy road, they are yards away
from the busiest theater in La Mirada, and are in close proximity to Biola University. Because
Cold Stone appeals to an older audience, this is a strategic choice for them.
Place Strengths:
• Open late at night (Customer #1, 2, 3, 4, 5, 17, 18, 20, 21, 28).
• Close to La Mirada Theaters (Customers #22, 23)
• Close to Biola University (Customer #1, 2, 3, 4, 5, 28, 29)
• Easily accessible for surrounding suburbs (Customers #22, 23)
Place Weaknesses:
• Small sign and store does not stand out (Professional #6)
• Not enough seating for customers (Customers #22, 23)
• Strip mall location does not communicate the prestige and expense of Cold Stone’s
product (Customer #28)
• Parking can be difficult when crowded (Professional #3)
31	
PROMOTION ANALYSIS & DISCUSSION
Promotion Objective: Cold Stone’s promotional objective is to emphasize the benefits of their
product in the marketplace in order to draw customers into their stores. Their goal is not to bring
customers in for the first time. Instead, they are aiming to remind customers about why they like
their product.
Promotion Strategies: Cold Stone’s promotional strategies range from national attention to
local promotion. Their objective of reminding customers of their benefits is evident in their TV
commercials and website (Website #2). Like Baskin-Robbins, Cold Stone has an online
promotional subscription that gives customers the opportunity to get free ice cream. Their online
promotional program, or My Cold Stone Club™, allows customers the opportunity to buy one
creation and get a free creation coupon delivered to your house (Website #20). Gift cards, 20%
discount for Biola students, and Birthday coupons encourage customers evokes behavior and
stimulates demand (Professional #1).
The main goal of the promotional goals of Cold Stone is to emphasize the benefits of
their products in the marketplace. They do this through their in-store decorations, online
advertisements for Holiday cakes, and the way in which they display the products they are
serving to their customers (Website #2, Professional #2). The different labels for sizing—“like
it” “love it” and “gotta have it” for the individual servings and the “mine” “ours and “everybody”
option for the pre-packaged sizing emphasize the benefits of the product, encouraging customers
to develop a respect and need for the product (Website #2). Other promotional options involve
creating your own ice cream online, ordering your ice cream from a smartphone app, an online
social stream page, and a page on their website dedicated to their history (Website #2). Instagram
offers free promotion by displaying the delectable different treats customers, emphasizing the
way in which each store individually handcrafts their ice cream (.
Cold Stone’s promotional strategies are effective because customers have developed an
appreciation for the value of their products rather than feeling an incentive or promotional
coupon getting them into their stores. Customers have developed a respect for the Cold Stone
name because they have a respect for themselves (Customer #1, 2, 3, 4, 5, 17, 18, 19, 20, 24).
Additionally, word of mouth is an effective tool for their company. Many customers interviewed
from Biola came to love Cold Stone near Biola after hearing from others about the value of the
product.
Unlike its competitors, Cold Stone does not bribe their customers into their shops. In
fact, they have found this to be incredibly detrimental to the financial success of their franchises,
even putting different locations out of business due to a loss in profits (Article #3). Additionally,
Cold Stone is critical about the ways in which they reward their customers. They promote an
appreciation for the product they are rewarded by the product itself, not necessarily a discount.
Promotion Strengths:
• High brand respect from customers (Customer #1, 2, 3, 4, 5, 17, 18, 19, 20, 24).
• An understanding of the product’s value (Customer #1, 2, 3, 4, 5, 17)
• Promotion emphasizes the benefit of the product rather
• Customers want their product because it’s good not because Cold Stone wants to sell
their product
32	
Promotion Weaknesses:
• A lack of promotional effort to communicate what the product is to those who have never
heard of what they offer and the experience it brings
• Customers perceive the product as premium and avoid the product because it appears too
expensive (Customer #13).
WEBSITE ANALYSIS & DISCUSSION
Website Objective: Cold Stone’s objective with their website is to inform customers of the
value that their product has to customers, provide convenient ways for customers to order food,
and provide promotional deals and coupons. Cold Stone’s website is found at:
https://www.coldstonecreamery.com. The company also has an application that is downloadable
to mobile devices. Reviews can be found on Yelp: http://www.yelp.com/biz/cold-stone-
creamery-la-mirada-2
Website Strategies: Cold Stone’s website opens up to a large photo of a delicious ice cream
treat. It continues to a reel of various delectable Cold Stone creations. The main goal for their
website is to offer convenience for their customers by offering easier ways to order cakes, food,
and gift cards. Cold Stone’s website communicates a deep pride for the way that the make their
food—through the focal point of their logo, slogan “Because the world deserves better ice
cream,” and an emphasis on information about their ice cream. Cold Stone is looking to inform
their customers about their product by communicating what it is they are offering to their
customers. Pages are devoted to the health information of each product offered, the history of the
corporation, and the various steps they are taking to offer more options for people with different
health restrictions.
This website provides value to their customers by creating convenient store look up
functions, an application that allows customers to order food from their phones, and social media
displays with their follower accounts. Instagram offers free promotion by displaying the
delectable different treats customers, emphasizing the way in which each store individually
handcrafts their ice cream.
Website Strengths:
• Everything on the website is about the customers and the value of their product
• Unlike their other competitors, they do not beg their customers to visit their stores with
promotional coupons.
• Franchising information is hidden
Website Weaknesses:
• App is poorly designed and customers are unlikely to download simply to purchase their
product
• Graphics can appear outdated at times
• Yelp complaints are not channeled to address complaints
33	
TIME OUT
34	
ETHICAL ISSUES & ACTION PLAN
A. The Situation: A mom and her three kids walk in to my ice cream shop. It is late in the
afternoon and they are wearing dirty clothes and appear to be coming from school. The kids look
excited and the mom looks especially tired. I welcome the family in and ask how their day is
going. The kids are timid but are noticeably excited about being in the shop—Their eyes as wide
as saucers and it is fun to see them get so excited. As the kids decide which flavor they are going
to get I start talking with the mom. When she first walked in I noticed she looked tired, but now
she looks sick. Her eyes are bloodshot and her arms have red marks. It is clear after talking with
the mom that she struggles more with a lack of sleep—Her words are slurred and she is
struggling to answer basic questions. I let the kids all choose their ice cream flavors and then I
ring up their prices. Combined their total is $15.75. The mom fumbles around through her purse
looking for her money and starts counting out change, stacking up quarters and dimes until she
barely reaches $3 in change. “I’m so sorry, kids. Mama got paid today but I can’t find the
money.” The kids all look frantic and embarrassed. The shop is empty but it is clear that the kids
are embarrassed for me—this is something that has happened before. The mom has a drug issue
and is using her money to fuel her drug addiction and not pay for her kid’s ice cream.
Unfortunately this becomes a frequent problem—after dealing with the problem one time by
paying for her ice cream with my own money, she continues to come into the store with her kids.
Now I must decide what I will do. I don’t know if these kids are safe.
B. The Tension: The personal tension for me is that I have been a nanny for many years and I
have an awareness of what it takes to take care of children. If people are not able to take care of
themselves, it is unlikely that they can take care of children. Allowing this mom to continue her
drug addiction is difficult for me. I am worried what other customers will think if this becomes a
habit. I do not want to overstep into another person’s life, but there is a tension as a Christian to
help these kids. There is a tension as this woman’s peer to defend her image towards her kids.
There is a financial obligation to defend my shop and cause it to not lose profit. There is a legal
tension if she starts stealing from my shop by expecting frequent free ice cream.
C. Ethical Dilemmas:
a. If I do nothing I risk the possibility of these kids not being safe.
b. If I continue to give her free ice cream I lose profit and it could risk the image of my shop.
c. If I ask her to stop coming to my shop I could be perceived as not having good customer
service.
D. Biblical Principles:
Luke 3:10-11 “What should we do then?” the crowd asked. John answered, “Anyone who has
two shirts should share with the one who has none, and anyone who has food should do the
same.” à Jesus talks often in His time on the earth about helping the poor and the needy. This
command would cause me to struggle to not do something for this woman and her family.
Whether that means buying her ice cream with my own money, seeing if she is capable of taking
care of these children, or simply asking how I can be praying for her. Caring for the poor and
needy is an essential part of the Christian walk.
35	
Galatians 5:20 “Envy, drunkenness, orgies, and things like theses. I warn you, as I warned you
before, that those who do such things will not inherit the kingdom of God.” à I do not know if
this woman is a Christian or loves the Lord, but God commands His children to not walk in
drunkenness. As a follower of God my heart would break as I witness another child of God
walking in destruction for her sake and her family’s sake.
E. Action Plan:
Because this has become a regular occurrence, I would confront the lady and ask that she does
not continue coming back if she cannot pay for her ice cream. I would put her in touch with food
shelters and my church’s homeless ministry. If she keeps coming back I would contact the
police. While I feel comfortable becoming her friend and paying for her ice cream once or twice,
there is a fear that I will be encouraging the sin in which she is walking in. By connecting her
with resources she would no longer feel a need to get free food from my shop and I would be
addressing my concerns for her health and her children’s help. I would check in on her to insure
she is doing better after connecting her with my church’s ministry.
F. Rationale:
While I feel comfortable covering her ice cream one time, there is a fear that she might take
advantage of my shop. By connecting her with resources and confronting this problem
personally, I am addressing all of the concerns. If she continues to come back to my shop and
fails to seek help from my resources, I will contact the police to protect this woman, her children,
and my shop’s image.
SWOT ANALYSIS
Strengths:
• I have spent hundreds of hours researching the different demands and needs of the
industry
• Consistent need for ice cream
• In doing this research I have identified a narrow target market and need through customer
and professional interviews
• Younger perspective of the wants and needs of the industry
• An “outsider” coming into this industry could create fresh ideas that would expand the
industry
Weaknesses:
• No experience in this particular industry
• Many other dessert alternatives
• Brand image is non-existent
• Highly competitive and well developed industry with a majority of sales going to large
corporations (Competitor #1, 2)
• Creating a highly specific target market could be too risky and turn customers away if it
does not apply to them
36	
Opportunities:
• The changing needs of the market reveal new opportunities
• A growing demand for healthier products and more creative techniques
• I have management experience and administrative training that could lend itself to this
process
• I will be given the opportunity to stand on a large platform to preach the gospel to my
employees and customers
• Opportunity for personal growth and learning
Threats:
• My competitors could take away my customer base if I am not strategic in the way that I
address customer needs
• Growing hipster and trendier shops could become a growing threat
• Health concerns could take away from my customers
• Legal implications if mistakes are made by employees or myself
COMPETITIVE ADVANTAGES
1. Problem: Environment does not encourage customers to stay for long periods of time
(Customer #23, 24, 25)
Solution: Providing an abundance of seating will encourage customers to stay a long time and
feel welcome to socialize. Customers going to an ice cream shop are looking to fulfill a social
need, so seating and environment is incredibly important (Article #6). In order for customers to
feel confident about their decision to go to a shop rather than choose store-bought ice cream
there must be an abundance of seating and a clearly communicated place for people to engage in
social gatherings.
2. Problem: Products not geared towards children (Customer #10, 11, 12, 13, 21)
Solution: Offering more colorful, vibrant flavors with kids in mind. Smaller sizes, unique
touches including whipped cream, sprinkles, and toppings. Kids like an experience that is
engaging and customizable. Making facilities geared to the specifications of children—display
windows, menus, and decorations. Vibrant colored flavors with kids and parents in mind.
Exploring the possibility of creating an entertainment option for children while their parents are
socializing (rock wall, jungle gym, crafts) would fulfill a popular demand that came up in
interviews (Customers #10, 14).
3. Problem: Outdated/ uncleanly shop facilities (Customer #4, 18, 19, 30)
Solution: Updated display cases, flooring, lighting, and hiring a designer to create an updated
facility. Only choosing locations in updated shopping and strip mall locations will lend to a
cleaner image for the company. Interviewed customers mentioned they chose to avoid certain
shops because their shops were outdated and uncleanly (Customer #30).
37	
4. Problem: Unhealthy and inorganic ingredients (Customer #5, 10, 11, 12)
Solution: An increased social demand for healthier ingredients has challenged people’s desire to
enjoy a dessert option (Article #8, 9, 10). More awareness of how food is processed creates an
opportunity for my third product to stand out in the industry. I plan to use organic ingredients,
make my product daily, and provide healthy options for my customers. Using local ingredients
and creating relationships with local farmers creates an ethical opportunity to not cut corners and
provide honest, whole products for customers. While my dessert may not compromise the sugary
treat people are looking for, organic and local ingredients will be utilized.
5. Problem: Employees lack friendliness and customer service (Website #1, Customers #3,
30, 31) Solution: Training employees to engage with customers in order to make the ice cream
experience a positive one makes all the difference. Interacting with the process of making the ice
cream adds the extra touch that makes spending 200% more than store-bought options worth the
investment (Article #3). Solutions could include specific songs sung by employees for each
different item, a performance element to the process, or a specialized cup or cone for kids.
Exploring the possibility of hiring trained chefs for each location could add an element of
passion to the service experience. If customers see that the employees are passionate about the
process, they will be more likely to invest in the ice cream process (Customer #30). Choosing to
never have an employee work alone (like they do at both Cold Stone and Baskin-Robbins),
customers will sense a real passion and friendliness if they are working with a pair of friendly
employees.
INTERNAL MARKETING STRATEGIES FOR 3RD
PRODUCT
Quality & Consistency:
Potential Concern #1: Inconsistent taste
Potential Solution #1: Because the ice cream will be made fresh each day in the shop, it is
possible that the product could be inconsistent if not made properly one day. Customers could
grow concerned that the product they are receiving is different each time they order a product
from us. By creating a systematic process and purchasing machinery that creates a consistent ice
cream texture and flavor, our brand will remain intact and customers will know what to expect
from us. Hiring a chef that makes the ice cream the same way each day and training employees
to follow protocol for the different orders and topping combinations, a system will be in place to
create a consistent product with a delicious taste.
Potential Concern #2: Messy store
Potential Solution #2: Hiring an abundance of employees and assigning job rotations will create
a system that can solve this problem. Customers never enjoy sitting in spaces with melted ice
cream on the tables, napkins scattered on the floor, or a messy floor. By training employees to
clean these messes as part of their job, customers will likely never see the store in a messy state.
Weekly deep-clean crews will insure that the shop is meeting code by creating a cleanly working
environment each week. Working more staff than originally seen as necessary will be vital to the
success of this business and the cleanliness of the shop. Assigning a “floor worker” during the
busy hours to bus tables and interact with employees will insure that each customer is being
tended to if they are in need of napkins or need a table wiped down
38	
Employee Satisfaction and Training:
Potential Concern #1: Uninterested employees
Potential Solution #1: Cowlick Creamery must be a fun environment and we need to insure that
employees are passionate and excited about their work. This will be achieved through training
programs and management meetings. Hiring employees who thrive on customer interaction and
enjoy serving others will set this company apart from the beginning. Training customers to bring
passion to their work will be vital. Rewarding good customer interactions through a rewards
program and employee compliment board will encourage a positive employee environment. I
will be hiring employees who are older than most ice cream shop employees and will be paying
higher than minimum wage payment. Working with the employees and asking questions about
their lives and their experience at the company through monthly one-on-one meetings will allow
a place to encourage employees to pursue more passion and excitement in their work. Creating a
chalkboard in the back of the store that creates a place for employees to record their favorite
moments of a shift or encouragement to other employees will develop a sense of community and
more passion for their job and community.
Potential Concern #2: Employee gossip
Potential Solution #2: I will have a low tolerance for gossiping (3 strike rule). Whether it is
overheard gossip about customers or other employees, this is something I am unwilling to
compromise on. Employees will know this from the beginning through training and will be
aware of this policy. If it is found out that employees are speaking poorly about others, there will
be a formal warning. If it happens again we will discuss if it is better for them to no longer work
at the company anymore. It is vital to have a positive employee working environment, because
customers can see more than you might think.
Customer Service:
Potential Concern #1: Unfriendly workers
Potential Solution #1: Intense training and weekly manager meetings will set the bar high for
employees. Hiring employees that are passionate about people rather than those who are just
looking to make money and gain experience at their first job will be a key part of interviewing
employees. Because customer service was a main complaint for customers attending Baskin-
Robbins, I want to insure that this is addressed with my employees. Insuring that there is always
more than one employee working in the shop will create accountability. Rewarding good
customer interaction experience by setting an “Employee of the Month” program up will create
an incentive for employees to interact more positively with customers. Encouraging small talk
and giving employees the resources to create long-term customer interactions will set our
company apart.
39	
Potential Concern #2: Unsatisfied customers
Potential Solution #2: Rather than having customers turn to Yelp where complaints can affect
future business, a system will be in place for customers to respond to the service they have
received. Our shop will have interactive iPads or comment cards displayed to record customer
response and feedback. Rewarding customers to take these surveys by rewarding them with the
possibility of free ice cream in the future will create a place for customers to feel heard if they
were unsatisfied with their product. Personally emailing customers if they had a bad experience
will give our company a chance for the customer to give us another chance
Research:
Potential Concern #1: Unpopular flavors
Potential Solution #1: Recording the number of ounces each flavor of ice cream sells each day
will give the chef an idea as to the popularity of each flavor. Making a chart for each day and
recording the number of ounces remaining for each flavor will help us know which flavors are
the most popular and which flavors could be replaced with other, more popular flavors.
Potential Concern #2: Disconnect between reality and owner’s perception (ignorance card)
Potential Solution #2: Conducting a bi-yearly survey and researching customers through focus
groups all-day surveys will help us know where our weaknesses are. Offering a survey through
social media and rewarding customers through free ice cream will communicate that we care
about their needs and value their feedback. Having a disconnect between how your customers
perceive you and the product you are offering could be painful for our company. By reaching out
to customers through conversation through feedback and response through iPad comments in the
store, we can address concerns throughout the year as well.
PURPOSE STATEMENT
Cowlick Creamery is all about creating ice cream with farm fresh ingredients and rich,
customizable flavors. We have a close connection with our local farmers because food should
not only be good, but also carefully crafted. What you see is what you get—from watching the
product made in the kitchen behind the counter, to customizing it with your choice of toppings
right in front of you, we have put simple back into the art of ice cream. Cowlick Creamery is
dedicated to socializing. We offer an abundance of comfortable seating so you can enjoy your ice
cream along with a long conversation. Our staff is friendly and well-trained, ready to help you
create the creation you have been dreaming up. Our store is kid-friendly, with an abundance of
entertainment once they finish their treats. Whether it is the chalkboard wall, rope swing, or farm
animal displays, we love kids and encourage playfulness. Cowlick Creamery’s philosophy is
simple: Quality ingredients, kid-friendly shops, and inviting atmospheres that provide positive
memories with a small-town feel.
40	
WHY WILL COWLICK CREAMERY BE SUCCESSFUL?
Cowlick Creamery will be successful because it addresses the wants and needs in the industry.
Ice cream shops have taken the social out of ice cream, focusing primarily on getting you the
product you want. Customer interviews overwhelmingly stated that choosing to purchase ice
cream comes from a social need and they are really looking for a place to enjoy time with a
friend. A tasty treat is an added bonus! Cowlick Creamery will address these concerns. The shop
will be devoted to creating an abundance of seating for customers. Additionally, our shop will
address customer’s growing concern for fresher ingredients. While most customers were looking
to indulge in a sugary treat, a common theme of fresher ingredients and more care into the
culinary process indicated a real gap in the ice cream industry. Cowlick Creamery is in close
communication with the dairy farm it works with. We work closely with our chef to master the
perfect recipe. We will be successful because we target a specific demographic—mothers. We
are where they are—near shopping malls, yoga studios, YMCAs, and parks. Our success will
come from our dedication to the quality and consistency in which we address the needs of our
target market as well as the needs that continue to arise in the industry.
41	
COWLICK
CREAMERY
42	
POSITIONING MAP #1
Cowlick Creamery is placed where it is on this map because customers have indicated a desire
for fresher ingredients (Customer #2, 3, 6, 7, 8, 9, 15, 16). Cowlick Creamery is dedicated to
farm fresh ingredients without compromising taste. Customers and industry research indicated a
desire for more experience-based ice cream (Article #4, 6, 9, Customer #1-30). Involving
customers by making the experience personal will differentiate Cowlick Creamery from its
competitors.
Creative	Experience	
Simple	Experience	
Fresh	Ingredients	Highly	
processed	
	
A à Cold Stone
B à Baskin-Robbins
C à Yogurtland
D à Honeymee
E à Cowlick Creamery
A	
B	
C	
D	
E
43	
POSITIONING MAP #2
Cowlick Creamery is placed where it is on this map because it is dedicated to addressing a need
in the market for a kid-friendly ice cream shop. Professionals indicated a majority of their
customers as being young kids, but customers pointed out a lack of kid-friendly options at the
various competitors (Professional #7 Customer #10, 11, 12, 21). Additionally, nearly all
customers indicated that their choice to attend an ice cream shop was to fulfill a social need.
Both competitors lacked seating, so Cowlick Creamery will provide an abundance of
comfortable seating (Customer #2, 3, 5, 18 Professional #3, 13).
Always	Enough	Seating	
All	About	
Kids	
Hard	To	Find	a	
Place	to	Sit	
All	About	
Adults		
A à Cold Stone
B à Baskin-Robbins
C à Yogurtland
D à Honeymee
E à Cowlick Creamery
A	 B	
C	
D	
E
44	
PRIMARY TARGET MARKET ANALYSIS
1. Primary Demographic: Cowlick Creamery’s main target market is stay-at-home-moms ages
22-35 with young children looking for a place to catch up with their friends. By addressing
specific needs of this demographic, this shop will generate success. The understanding of a need
to address this target market came from two customer interviews in particular (Customer #8, 21).
1. Mothers (ages 20-45) with children (0-10) looking for a place to enjoy time with
friends without getting childcare
2. All ethnicities
3. Middle to upper income
Why: I ranked demographic as the most important element of my shop because it guides a
majority of the factors that will differentiate us from other shops. Who our customer is will be the
most important element of our shop.
Why: I chose this target market because I saw a need in the industry. Mothers often go to coffee
when they are looking to catch up with friends, but this creates a distraction if their kids are not
entertained (Customer #8, 21, 31). Narrowing in on specific needs of this demographic will
differentiate Cowlick Creamery.
2. Primary Psychographic: Cowlick Creamery is targeting people who value spending quality
social time with others. They value talking, socializing, and sharing time with friends and family.
Cowlick customers also value the ingredients and care that is in their food. Research found that
the leading reason people chose to go to an ice cream shop over purchasing ice cream from the
store was to fulfill a social need (Customer #1-30).
1. Family is very important
2. Values socializing
3. Cares about where their food is coming from
4. Thoughtful design and clean atmosphere
5. Good morals
6. Indulging
Why: I ranked primary psychographic second because the product we are offering is seeking to
fulfill a need for the values of a specific psychographic. People who care about who they are
eating with, where their food is coming from, and the atmosphere in which they will indulge is a
leading aspect that will get Cowlick Creamery customers to visit our shops.
Why: I chose this specific demographic because understanding the target market’s values and
ideas that drive their decision-making factors will be a leading factor that will set Cowlick apart
from other competitors. By seeing that the customers care about—where the food is coming
from, interactive experiences, and fulfilling social needs is essential to the Cowlick Creamery
experience.
45	
3. Primary Benefits: Cowlick Creamery will offer its customers rich and creamy ice cream with
quality ingredients. They will put care into the process of creating their ice cream. There will be
a interactive element to choosing their toppings from a small variety of basic flavor choices,
which will allow the customer to get exactly what they want. We will offer a large amount of
seating—from couches to large tables—giving customers a place to socialize and enjoy a
delectable treat.
1. Farm fresh ingredients
2. An abundance of seating
3. Kid-friendly flavors, entertainment, birthday party options, and sizing
Why: I ranked primary benefits third because it is incredibly important to the success of the
company, but is the result of the two leading factors. Addressing the demographic and
psychographic needs of mothers created these primary benefits. Choosing farm fresh ingredients,
a place for mothers to socialize with friends and kids, and providing a kid-friendly environment
is what will separate us a part from other competitors looking to address these needs.
Why: I chose to provide these benefits to my customers because it addresses a variety of needs
that came up in customer interviews. Social and cultural factors indicated a desire for more
tasteful ice cream with more of an emphasis on the experience (Article #7). Ice cream seems to
be a constant want in American culture, so providing benefits that serve a specific demographic
and psychographic will be essential to the success of Cowlick Creamery.
4. Primary Location: The location of Cowlick Creamery will be in an upscale suburban
shopping area near boutiques, children’s clothing stores, and other eateries.
1. In an upscale old-town downtown shopping area
2. Proximity to women and children clothing shops
3. Large enough store for ample seating
4. Near a large park with a playground
Why: I ranked primary location last because it has proved to be a leading decision-factor in why
customers choose certain dessert options over others, but I do not feel it leads in this
demographic. It will be vital to have my store located near others shops that will draw mothers
in. Having close proximity to schools, other shopping areas, hair salons, and other shops that
fulfill the social needs of mothers will be vital. However, it follows many of the other leading
target market factors.
Why: I chose to put Cowlick Creamery in an upscale shopping center because the surrounding
shops will draw in many customers with similar wants and needs. My primary demographic
wants to be in the hippest places for moms with close proximity to parks and other activities that
will entertain a social outing for mothers and their children.
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TMP PDF

  • 1. TARGET MARKET PROJECT ICE CREAM INDUSTRY KRISTEN SMITH
  • 2. 2 TABLE OF CONTENTS MARKETING ENVIRONMENT -------------------------------------------------------------- 3 INDUSTRY POTENTIAL ------------------------------------------------------------- 4 CURRENT TRENDS ------------------------------------------------------------------- 5 COMPETITIVE FACTORS ---------------------------------------------------------- 6 TECHNOLOGICAL FACTORS ----------------------------------------------------- 7 POLITICAL & LEGAL FACTORS -------------------------------------------------- 8 SOCIAL & CULTURAL FACTORS ----------------------------------------------- 9 CONSUMER BEHAVIOR FACTORS --------------------------------------------- 10 COMPETITOR #1 (BASKIN-ROBBINS) --------------------------------------------------- 11 POSITIONING MAPS ----------------------------------------------------------------- 12 PRIMARY TARGET MARKET ANALYISIS ------------------------------------- 14 PRODUCT -------------------------------------------------------------------------------- 15 PRICE-------------------------------------------------------------------------------------- 16 PLACE ------------------------------------------------------------------------------------- 17 PROMOTION ---------------------------------------------------------------------------- 19 WEBSITE ---------------------------------------------------------------------------------- 20 COMPETITOR #2 (COLD STONE) ---------------------------------------------------------- 22 POSITIONING MAPS ------------------------------------------------------------------ 23 PRIMARY TARGET MARKET ANALYISIS -------------------------------------- 25 PRODUCT -------------------------------------------------------------------------------- 26 PRICE --------------------------------------------------------------------------------------- 28 PLACE -------------------------------------------------------------------------------------- 29 PROMOTION ----------------------------------------------------------------------------- 30 WEBSITE------------------------------------------------------------------------------------ 32 TIME OUT-------------------------------------------------------------------------------------------- 33 ETHICAL ISSUE & ACTION PLAN --------------------------------------------------- 34 SWOT ANALYSIS--------------------------------------------------------------------------- 35 COMPETITIVE ADVANTAGES --------------------------------------------------------- 36 INTERNAL MARKETING STRATEGIES --------------------------------------------- 37 THIRD PRODUCT (COWLICK CREAMERY) ---------------------------------------------- 41 POSITIONING MAP------------------------------------------------------------------------ 42 TARKET MARKET ANALYSIS---------------------------------------------------------- 44 PRODUCT ------------------------------------------------------------------------------------ 46 PRICE------------------------------------------------------------------------------------------- 47 PLACE------------------------------------------------------------------------------------------ 48 PROMOTION--------------------------------------------------------------------------------- 49 WEBSITE-------------------------------------------------------------------------------------- 51 WORKS CITED-------------------------------------------------------------------------------------- 52 ARTICLES------------------------------------------------------------------------------------- 53 WEBSITES------------------------------------------------------------------------------------ 54 PROFESSIONAL INTERVIEWS -------------------------------------------------------- 56 CUSTOMER INTERVIEWS--------------------------------------------------------------- 59
  • 4. 4 INDUSTRY POTENTIAL The ice cream industry has a large opportunity for potential, especially as new consumer preferences arise and large-scale shops fail to meet customer needs. Despite a demand for healthier dessert options and the growing popularity of frozen yogurt and gelato, ice cream is still America’s favorite dessert item (Website #14). The ice cream shop industry is a $12 billion growing industry with an arising demand for creative innovation (Article #8). The ice cream industry has won the hearts of Americans and has become the leading staple dessert item and social event. People are always looking for an opportunity to celebrate, so if a shop creates an atmosphere that cultivates celebration, the customers will come. A majority of the industry is run by a younger demographic—whether it is a birthday, baseball game, or a good grade, ice cream has become a leading form of celebration. Despite a consistent demand for dessert shops, the industry has struggled to see growth in recent years. Health trends, the recent emergence of frozen yogurt, and a drop in the economy have stolen ice cream sales in recent years, causing concern for this industry. In 2009, Baskin-Robbins failed to meet their yearly franchise expansion goal of 0.2% growth and other major contributors saw consistent declines in expansion (Article #8). Baskin-Robbins sales dropped to $496 million from $570 million, Dairy Queen, Cold Stone, and Ben & Jerry’s saw as much as 9.8% decreases in sales between 2009- 2014 (Article #8, Website #13). Cold Stone announced a 4.9% yearly sales decrease in 2009 and has struggled to recover since (Article #8). Many of these publically held franchises are struggling to remain where they once were, but the industry still appears promising. While statistics of popular franchises show that American ice cream consumption is likely down 45%, popularity in non-dairy and sorbet treats are soaring in popularity with a 46% growth in 2013-2014 (Website #12). Artisanal brands have captured the imagination of consumers and are taking over the industry. Small ice cream shops and privately held manufacturers have pinpointed what consumers want: ice cream made with quality ingredients (Website #13, Customer #3). Brands like Talenti, a privately owned gelato brand based out of Minneapolis, are soaring, with pint sales of $30 million in 2013 overwhelming industry growth (Website #13). Studies show that 40% of American consumers will eat ice cream this week, just behind coffee consumers at 47% (Website #13). The demand for ice cream continues to remain stable, but customer needs are changing and franchises need to catch up. The frozen yogurt market drove in $279-$485 million dollars between 2011 and 2013 (74% growth), while the ice cream industry drove in $5.7-$5.9 billion (3.9% growth) (Website #17). The need for a sweet treat remains, but the frozen dessert industry is changing quickly and large-scale ice cream franchises may need to catch up before sales begin to melt. Implications: Starting an ice cream shop in the frozen desserts industry could prove incredible payoff right now, if done correctly. Growth in frozen yogurt and gelato sales in recent years proves that the industry does not lack a need for frozen treats. Preferences are simply changing. Research has shown that there is a major gap in this industry. The popularity of small ice cream shops that put more care and consideration into ingredients are soaring, but they lack the capacity to grow at a rate of larger-scale franchises. The economy hit large franchises like Baskin and Cold Stone hard, and they are struggling to recover sales growth after the recession.
  • 5. 5 CURRENT TRENDS In recent years, the United States has become more conscious of health risks and the content of their foods. Elements such as organic products and the percentage of fat and sugar content have caused consumers to become more aware of what they are eating (Customer #4, 13). In a 2011 study, 60.6% of Americans would prefer to eat organic foods to non-organic food options (Website #9). Data indicates that over 78 million U.S. adults and 12.5 million children are obese, and people are starting to listen to these statistics (Website #11). With increasing media and cultural understanding of the implications of unhealthy eating, dessert experiences are now approached by most adults with an element of guilt. According to 67% of US consumers, health attributes are important for their deciding to choose certain foods (Website #12). With this being said, most adults are shifting their thinking when deciding where and how they should indulge in a sweet treat. In the 1990s, the frozen yogurt trend invaded the frozen dessert industry with the self- serve, mix-it-yourself frozen yogurt model (Website #17). In the past twenty years, more than 2,582 frozen yogurt shops have emerged in the United States with sales averaging at a 21% increase each year (Website #13). However, researchers predict this trend will not last long. Even at its height, frozen yogurt’s popularity is nothing close to ice cream’s sales (Website #13). Regardless of the future of frozen yogurt, consumers want something different. Whether it is the desire for lower fat and sugar options, a more personalized and self-served experience, or a short-lived trendy experiment, consumers are raving about this new trend. IBIS World analysts believe the frozen yogurt industry has capitalized on having a fun guest experience at a low price (Article #8). In addition to a cultural shift towards healthier eating and frozen yogurt, there is a demand for a more entertaining dessert experience. In recent years, a shift towards trendier ice cream shops has created a popular presence in the younger generation through social media and celebrity experiences. Places like After’s Ice Cream, Honeymee, and Nitrogen7 are local shops that have grown in popularity due to the unique experience and conversation pieces (Websites 6, 7, 8). Nitrogen ice cream, ice cream donuts, and honey-covered ice cream have proven to be wildly popular, suggesting that the traditional ice cream franchise may not be cutting it. “Sterile” or “impersonal” ice cream experiences are no longer enough for this new generation (Customer #3). Of all the college-aged customers interviewed, the vast majority would choose a trendier location over the typical franchise (CI #1, 2, 3, 4, 29, 31). The Millennial generation appears to care more about the experience than past generations, indicating a need for change in the industry. Lastly, this industry is looking for creative flavors. While vanilla still remains America’s favorite flavor, the emergence of new flavors and palettes is creating a desire for more thought than simply a store-bought carton (Website #8). Visiting an ice cream shop is an experience, and customers are beginning to crave a more unique and flavorful one (Customer #2, 3, 31). Studies show that the most common purchase driver for ice cream in the US is flavor, at a nearly 70% majority (Website #12, Customer #1, 2, 3, 5, 6, 9, 15, 19, 20, 22). Flavors ranging from salted caramel, vegetable, and savory cheese and alcohol are opening the door to a more sophisticated palate (Website #12). This category is the biggest opportunity for innovation and smaller stores are starting to realize the possibility for industry growth.
  • 6. 6 Implications: The implications of the current trends show that entering a new market will require creativity. Customers are looking for two conflicting elements: healthier options and more flavorful experiences. While Americans are always looking for an opportunity to indulge in a sweet treat, the trends of this industry prove that shops that provide positive eating experiences with healthy and creative environments will stand out in their communities. Emerging interest in the trendier shops, frozen yogurt, and healthier options clearly indicate a shift in this industry. As someone considers entering into this market, factors of ingredients, atmosphere, culture, and experience should be leading considerations. Customers now are expecting a personalized experience. Whether this means adding their own toppings, choosing their own flavors through manual, customer operated machines; it is the little things that matter to this industry. Being sensitive to the health trends of this industry is crucial. Elements that will make people brand loyal will be different for each demographic, but a common understanding of the health sensitivity and push for creative thinking will set companies apart tremendously. COMPETITIVE FACTORS The ice cream industry is incredibly competitive. With the average American consuming ice cream 1.6 times per week, ice cream has grown into a more than $12 billion industry, just behind the coffee industry (Website #9). It is highly developed and large franchises consume a majority of the industry. My focus is on the two direct competitors, Baskin-Robbins and Cold Stone Creamery. Both shops offer sit-down and take out ice cream cone options. Ice cream franchises such as Ben & Jerry’s and Dairy Queen are major national indirect competitors. All these franchises represent over 56% of the ice cream industry (Article #8). In regards to secondary competitors, purchasing ice cream from grocery stores takes over 75% of ice cream purchasing sales and is the leading industry competitor (Website #9). Purchasing a carton of ice cream from the store is significantly cheaper than from a sit-down shop and is much more convenient for families. It does not, however, offer the experience that shops offer. In addition to grocery stores, emerging trendy ice cream shops have taken away the college-aged and young adult demographic from mainstream ice cream franchises (Professional #4). Local shops like After’s Ice Cream, Honeymee, and Nitrogen7 specialize in a more experience-focused ice cream experience: these nitrogen-made, donut ice cream sandwiches, and honey-covered ice cream shops have become very popular to the young adult crowd (Website #6, #7, #8 Customer #2, 3, 6, 7, 8, 9, 10, 31). Because of frozen yogurt’s appearance as being healthier than traditional ice cream, it has become the local ice cream shop’s greatest competitor (Website #14, Article #8). Frozen yogurt franchises and chains have taken away a large amount of business from ice cream shops because they offer a healthier approach and a more personalized experience (Article #8). Additional competitors in this industry would include any dessert option in the area: cupcakes, donuts, fast food dessert menus, boba and shaved ice shops.
  • 7. 7 Implications: Starting a company in this industry is highly competitive but there is definitely a need in the market for creative, healthy ice cream shops. The leading franchises in this industry have demanded a large amount of consumer sales, but should not keep people from considering starting new businesses. If a new player in the industry is considering starting a business, it is important to know the needs of the consumers. If they can pinpoint a niche in the market for a particular demographic, it will not be that difficult to succeed. Americans are dedicated to sweet treats and are always looking for an opportunity to celebrate. Whether it is a birthday, a new job, a date, or simply a reason to celebrate the end of a not-so-good day, ice cream shops continue to be a celebrated necessity in society. This offers hope for my third product, especially during this unique time in history. Addressing arising needs will be important to insuring success. Understanding the ways my competition fails to meet needs is essential to creating a successful third product. TECHNOLOGICAL FACTORS Technology has not played a major role in the ice cream shops industry in past years. In regards to running a shop, it is expected that a shop would use technology like surveillance cameras, cash registers, rewards cards, phone coupons, and the possibility of an online social media presence (Customer #4). Customers do not seem to expect much in regards to technology when they are comparing different ice cream locations. Studies do show that customers are beginning to expect to use technology more often when ordering food (Website #16). Both my direct competitors have their own phone applications, but both have poor reviews and little traffic (Website #2, #3). Some technologies that are currently being implemented in this industry include; mobile cake ordering, iPad kiosks, electronic menus, social media incentives, data analytics, computerized inventory, and rewards systems (Website #16). While customers do not currently demand these technological advances, companies can definitely benefit from the use of these factors to give them a competitive edge. Research shows that convenience is key for this generation—especially Millennials (Article #1). If technology can be used to make the ice cream experience faster and more specialized, it is likely that shops will see growth when they utilize new functions. In the past years, digital amenities like online ordering and mobile payment have gone from being futuristic extravagance to modern necessities for restaurant consumers, especially in Millennials (Website #16, Article #2). When considering starting a new company, it is important to exceed the demand for technological advances. While the upfront technological investments appear costly for an emerging company, it can make a major difference in saving time and drawing in customers. Choosing to invest in iPad cash registers, new applications, and online coupons are small investments when you look at the potential for profit. Southern California based liquid nitrogen ice cream is using technology to create new gourmet flavors and ice cream textures. These new shops are emerging all over the west coast and customers are lining up to try this unique ice cream (Website #17). While technological factors are not necessary for a positive, delicious, ice cream experience, it can leverage a company to address more customers and get the industry talking.
  • 8. 8 Implications: While small, mom-and-pop ice cream shops have continued to thrive despite a lack of technological advances, emerging players in this industry should utilize new technologies. Because we live in a technological age, stores that do not take technological factors into play will likely suffer. It is simple to interact over social media with customers, thanking them for choosing their store. Investing in technological advances such as iPad registers, electronic menus, and rewards cards are simple ways a company can appear technologically involved with the current generation. Studies are showing that Millennials are expecting to see technology in the purchasing experience. Any opportunity to make the buying experience faster, more user- friendly, and unique will set the player a part in the industry. While technology is not a requirement for a successful ice cream shop, small factors can contribute to a more positive buying experience. For my third product, I will take every chance I can to improve process through data analysis and invest in technologies that will help customers remember the buying experience. POLITICAL & LEGAL FACTORS Food contamination, allergies, and food-borne illnesses are a major legal factor in the ice cream industry (Professional #16). Training employees to properly follow food laws and regulations are crucial to avoid any customer illnesses and possibility for being sued. Before ice cream hits the freezer, it must meet codified standards established by law in order to be considered ice cream (Website #9). The possibility for customers suing because of health allergies and requests will only increase over time. Properly training employees to handle the foods is vital to avoid possible suing. According to Alyssa Medd, a three-year industry professional, the legal implications of employee hours and not overworking state laws were common themes throughout her career (Professional #4). Managing employees who might face immigration troubles, situations of employees misbehaving to customers, and unique situations between employees and owners are important to keep in mind. Like any retail and food industry, owners run the risk of being sued for injuries or problems with the store. America is referred to as “The Land of Lawsuits,” with nearly 15 million lawsuits filed in 2011 (Website #18). Passing all handicap laws and structural codes can avoid any trouble down the road in regards to your location. Being aware of how you can avoid lawsuits are important when preparing to go into an industry. Abiding by calorie listing laws through the FDA are essential as well. Increasing trends towards more health conscious eating are only making this industry more at risk for lawsuits. Insuring you have correctly labeled and measured ice cream scoops in order to provide a customer with the advertised nutritional information can avoid lawsuit. According to the FDA website, calorie and other nutritional labeling will be required for food establishments with more than 20 locations (Website #19). Being sure that your establishment abides by these rules is critical, so it is important to be aware of local and national laws. In addition to calorie and nutritional listings, passing food law inspections becomes public information. On Yelp reviews, customers can view the latest grade an establishment has received by the government in their inspection (Website #1). In order to provide a positive image for your company, passing these laws and tests is important to keeping a positive image for your location.
  • 9. 9 Implications: Opening a new restaurant or food service company offers a great amount of legal risk. In the ice cream industry, this implies an awareness of food and service laws. Before starting my company, I would create a binder of all the current laws and regulations in regards to food service, calorie listings, employees, facilities, and contamination. Insuring that my employees are well trained starts from the top, so it will be important to me that my facility is clean, well managed, and passes all national codes. I would hope that my company would not face any lawsuits, but in the case that this did happen, I would be sure to have a trusted lawyer ready to guide me through this process. SOCIAL & CULTURAL FACTORS Some of the current social and cultural factors that relate to this industry are health concerns, convenience, price, a desire to stand out and be unique, and a need for acceptance. Many professionals I have interviewed mentioned that their time in the industry has only brought more of an emphasis towards healthier eating (Professional #2, 3, 4, 6). The rising popularity of frozen yogurt has indicated a desire to pursue healthier, low-fat options. One customer, when asked what he considers before visiting an ice cream shop, admits that he recalls when he last worked out when deciding what shop to go to (Customer #4). Coming out of a recession, our generation places a higher emphasis on money than past generations (Article #3). Despite this trend, a majority of interviewed customers admit that they do not put a considerable emphasis on the price of ice cream, “Most ice cream is about the same price and I can expect to spend around the same price on all ice cream so it doesn’t affect me much” (Customer #1). However, other customers admitted a desire to go to certain shops because of a rewards card or coupon (Customer #2, 4, 29). Convenience is a major factor in our generation. The location, speed, and availability of products are essential to this generation. Baskin-Robbins locations are putting considerable effort into the convenience of their locations, by recently opening kiosk locations in airports, malls, and universities to cater to a more fast-paced generation (Article #1). Our generation is also unique in that it demands a need for acceptance. The need for social acceptance and quality time with others is essential in caring for family and friends. Coffee dates, hanging out, and doing social activities are a common part of society, and social media is only increasing this desire for social acceptance (Article #4). Fitting in is essential for youth and they care deeply about the latest trends. These elements all impact the ice cream industry. Whether it is a growing desire to eat healthier foods, connect with people, fit in through outlets like social media, and a growing sense of busyness in society, all are shaping how and why people choose ice cream. Luckily for this industry, the need for ice cream will likely never diminish. According to a Cold Stone ice cream scooper, no matter what society and culture says about the health factors of ice cream, “People will always make an excuse for a cheat day” (Professional #1). Whether it is celebrating a good day, wishing you had a better day, or sampling wishing to spend time with someone you love, ice cream is always a fitting excuse to celebrate life.
  • 10. 10 Implications: When considering my entrance into the industry, it is important to be aware of the social and cultural factors that are mentioned above. Society is often changing and being aware of the needs—whether psychological, health-related, or a need for creativity—there are ways to address these needs. Friendly workers, putting care into the ingredients, creating systems for rewards and coupons, as well as taking the time to interact through social media with customers will allow me to interact better with my customers. CONSUMER BEHAVIOR FACTORS The following factors exist in people making decisions to choose particular competitors in the industry. 1. Specific flavor of ice cream (CI#1, 2, 3, 5, 6, 9, 15, 19, 20, 22) 2. Proximity to other locations (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12) 3. Welcoming environment (CI #2, 3, 5, 18 PI #3, 13) 4. Dietary restrictions (CI #2, 4, 5, 6, 7, 17 PI #2, 4, 5) 5. Affordable price (CI #1, 13 PI #5) 6. Cultural trendiness (CI #1, 2, 3, 4 PI #4, 9) 7. Nostalgia (CI #1, 3, 4, 5, 16) 8. Product customization (CI #1, 13 PI #4) 9. Friendly employee interaction (CI #1, 3 PI #2, 5, 7) 10. Unique Experience (CI #2, 3, 17 PI #2, 9) 11. Personality of shop (CI #2, 3) 12. Large serving size (CI # PI #4) 13. Organic options (CI #4, 6, 7, 9 PI #3, 8) 14. Health conscious (CI #4, 6, 7, 9, 17 PI #2, 3, 4) 15. Kid friendly (CI # 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 20, 22 PI #3, 5, 8, 10) 16. Provides celebration (CI #1, 19) 17. Creamy texture (CI #1, 2, 5, 6, 7, 8, 9, 15, 21, 26 PI #5) 18. Creativity in flavors (CI #1, 2, 3, 5, 11, 12, 22 PI #10) 19. Seasonal weather (CI #4 PI #5, 11) 20. Color of ice cream (CI #10, 12, 22 PI #10) 21. Social outing (CI #2, 3, 13, 16, 19, 26 PI #2) 22. Promotions (CI #29, 11-14) Implications: Customers care about the little things, but the big things are what get them in the store. Kid friendly and creative options were two wildly popular reasons customers choose different ice cream options. Know why customers choose certain shops helps understand the niche in a marketplace. In the case of the ice cream industry, knowing what draws certain customers into the shop helps understand how we can improve and achieve a more specific third product. By knowing that customers are looking for kid friendly and accessible options, I can cater to these needs more specifically. Certain elements of the decision process that I expected would be leading behavior factors were not as popular as I was expecting them to be—atmosphere, personality of shop, and environment. It is important to keep in mind what really gets customers into your shop.
  • 12. 12 POSITIONING MAP #1 Baskin-Robbins offers highly processed ice cream that is frozen and distributed to thousands of locations around the country (Article #7). Customers do not associate their product with having fresh ingredients (Customer #1, 2, 3, 4, 5, 17, 18, 19, 21, 27, 28). The highly processed, frozen, and preserved product is clear in their shipped tubs and the way in which they are displayed for customers (Customer #15). The Baskin-Robbins experience involves choosing your flavor and sitting down. There is a lack of creativity and experience has affected customers in a changing market of choosing flavor and toppings in the frozen yogurt trend (Article #10, Customer #28). Creative Experience Simple Experience Fresh Ingredients Highly processed A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee A B C D
  • 13. 13 POSITIONING MAP #2 Baskin-Robbins appeals to children and has a variety of cotton candy and colorful flavors. Kids are looking for a reason to celebrate and research shows that parents are looking for kid-friendly options for dessert locations (CI # 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 20, 22 PI #3, 5, 8, 10). Baskin is great for both adults and children because they offer classic flavors but also wild cotton candy flavors. Customers are looking for seating and an inviting atmosphere. Baskin-Robbins does not have an abundance of seating for busy times—their locations are both small and are not designed for large groups of customers. Always Enough Seating All About Kids Hard To Find a Place to Sit All About Adults A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee A B C D
  • 14. 14 PRIMARY TARGET MARKET ANALYSIS 1. Primary Benefits: I ranked primary benefits first because Baskin-Robbins has offered many benefits that set them a part from other shops. What makes Baskin-Robbins so special is the benefits they offer for their customers. 1. Options (31 flavors): customers are able to choose the flavor of ice cream they want. Sherbet flavors and non-dairy options are available as well. 2. Consistency: there are 6,000 Baskin-Robbins locations around the world. Customers know the Baskin name because it has a consistent presence around the world (Article #7). 3. Samples: customers are able to try the ice cream in front of them until they find the perfect flavor. 4. Nostalgia: customers feel like they are kids again because of the bright colors, variety of options, and child-friendly decorations. 5. Inexpensive: Taking a large family out to ice cream would not break the bank. 2. Primary Geographic: People are not willing to drive very far for their ice cream and research has shown that customers looking for an ice cream will consider what is closest first (Article #7). Customer interviews proved that location was the major deciding factor in choosing this location. 1. Walking distance to homes: Families ride bikes to location to enjoy family time (C.I. #11-15, 16) 2. Close to sporting activities: Parents take children after soccer game at nearby field (C.I. #16) 3. Proximity to competition: Having other ice cream shops in the area takes away from the business. 4. Visible from a busy road: Locations on busier areas create more customer traffic. 3. Primary Psychographic: This is ranked third because the values of this company can be channeled in a variety of different ways. People can celebrate at a number of different shops, not just ice cream. 1. Family is very important 2. Good morals 3. Quality time 4. Indulging 4. Primary Demographic: I ranked demographic last because Baskin-Robbins is appealing to a fairly large demographic: young families and older adults. Baskin-Robbins caters to children ages 3-11 and adults ages 50-90 from a variety of ethnicities. These children come with their parents who are lower to middle class and are interested in an inexpensive treat for their children. The first picture on the website is of a children’s birthday cake and photos of middle-aged adults from a variety of ethnicities (Website #3). Baskin has highlighted the importance of diversity in their in-store decorations online advertising (Professional #6). 1. Families with children ages 3-11 (C.I. #11-15) 2. A variety of ethnicities (Website #3) 3. Lower-middle class 4. Price conscious customers (C.I. #11-15)
  • 15. 15 PRODUCT & CUSTOMER EXPERIENCE Product Objective: Baskin-Robbin’s objective is providing an affordable, delicious ice cream option to customers of all ages. Providing a variety of flavors for all the customers as well as a variety of different milkshake and cake options creates a place for a low-cost treat for families and people of all ages. Specific objectives in developing this product for Baskin-Robbins include: 1. A variety of flavors (Customer #11-15) 2. Affordability (Customer #11-15) 3. Kid-friendly (Professional #3) Product Strategies: Baskin-Robbins separates itself from the competition by providing an affordable and simplistic ice cream experience at a variety of locations. Their product consists of frozen tubs of ice cream that can be ordered in a variety of ways—single scoop cones, bowls, milkshakes, or splits (Professional #10). The Baskin product is an experience and a delicious treat. Customers are looking for a place to enjoy another’s company, a destination to bike or walk to, and a reason to celebrate. The bright decorations and branding communicate of nostalgia and child-like joy (Customer #27). The emotional connection of a colorful ice cream shop is a major part of their technique. Customers know they will find and ice cream flavor that will suit their cravings, whether young or old (Customer #11). Baskin products are frozen and shipped around the country, which allows them to sell their product for cheaper. Baskin-Robbins operates more that 7,100 retail stores worldwide, with 2,500 stores in 43 states (Article #8). They are famous for their 31 flavors slogan and the belief that customers should be able to sample their own flavors. Their stores sells ice cream, sundaes, parfaits, pre- packed tubs, cakes and beverages to customers (Article #8). Baskin-Robbins is always creating new flavors and since 1945 has introduced over 1,000 flavors to their stores. The strategy of allowing customers to see their options displayed by flavors in display allows the customer to develop a real sense of pride in selecting their ice cream flavor. People like choosing their products (CI #1, 13 PI #4). Baskin-Robbins stands by their passion of providing a consistent ice cream shop around the country. Their thousands of locations communicate a steadfast commitment to providing a place to celebrate. Their product is simple and easy—tubs of ice cream are delivered pre-packaged and them sold to customers in scoops, sundaes, or milkshakes. They offer a variety of gluten-free and dairy-free options for their customers, appealing to the increasing demand for more health-conscious and dietary-sensitive needs (Article #8). Unlike Cold Stone, customers are able to purchase a large amount of ice cream for a fairly affordable cost. Their product appeals to a younger crowd, but also fulfills the needs of parents as well (Customer #13, 14). They display their flavors so you know what you are choosing from—a menu is hardly necessary (Customer #28). Unlike other stores, Baskin- Robbins aims to appeal to a younger crowd with their decorations and music choices (Professional #10).
  • 16. 16 Product Strengths: • Most affordable ice cream shop (Customer #13). • Variety of flavors (Customer #11, 12) • Cakes, milkshakes, and splits expand menu and give more options (Article #8) • Kid-friendly decorations and flavors (Customer #12) • Locations are convenient and near populated areas (Customer #14, 15) • Offers specific dietary restrictive needs (Professional #10) Product Weaknesses: • Ice cream flavor and texture is not as rich a delectable as other competitors (Customer #15). • Lacks freshness and did not add to the ice cream’s taste (Customer #14). • Lack of seating, updated decorations, and a more cleanly feel (Customer #1). • Cones are not as fresh and delectable as competitors #1. • Cakes are poorly made and overpriced (Customer #5) • Struggled to pass inspection for cleanliness (Website #1). • Customer service and friendliness is low (Website #4, 5, 17, 18) • Only one employee working at a time (Customer #5) • Cakes are poorly made and “unappetizing.” (Customer #5) PRICING ANALYSIS & DISCUSSION Pricing Objectives: Baskin-Robbins meets the “low end of meeting competition” pricing strategy by serving a variety of affordable product while still obtaining a positive experience. Pricing Strategy: Baskin-Robbins has a strategy of providing an ice cream experience with a sit-down feel for a fraction of its high-end ice cream shop competitors. Because of Baskin- Robbin’s consistent name and highly developed manufacturing techniques, they are able to charge lower than normal industry prices for their ice cream while still allowing an impressive margin. Like the rest of the industry, low price industry production allows the company to charge cheaper prices for their ice cream (Article #5). Unlike Cold Stone, Ben & Jerry’s, and Honeymee, Baskin utilizes the cheap production costs of making ice cream to appeal to their customers with a low cost. Their lower-than-industry average prices makes customers more open to the option of choosing this location over other competitors. If Baskin-Robbins were to Baskin-Robbins Cold Stone Industry Average Single Scoop $2.79 $5.00 $3.22 Double Scoop $3.99 $5.25 $4.35 Take Home Quart $5.99 $8.00 $6.33
  • 17. 17 increase its prices by 20%, it would mean that a scoop of ice cream would be around $3.99 a scoop. Customers did not indicate an overwhelming preference at the cost of their ice cream, but the product that Baskin-Robbins offers is likely not equivalent to an above industry average price (CI #1, 13 PI #5). It is likely that driving up the price would drive customers away to less expensive competitors like fast-food ice cream options or to a more quality product at a similar price. Pricing Strengths: • A wide range of flavors with a simple ice cream concept offered at a cheaper price than most of the competitors in the ice cream shop industry (CI #1, 13 PI #5). Pricing Weaknesses: • Lower pricing may communicate a lower product value and could cause customers to go to a higher-end competitor for a small percentage increase in cost (CI #1, 2, 3, 4 PI #4, 9). PLACE ANALYSIS & DISCUSSION Place Objectives: Baskin-Robbins locations are typically found in strip malls, near other food options, and in busier areas of cities. Their locations are typically found in highly populated suburbs, malls, and airports. The objective of this location is to be convenient for their target market. Place Strategy: Baskin-Robbins is a convenient sit down or take-home ice cream location that provides a place for people to enjoy a social gathering with friends and family (CI #2, 3, 13, 16, 19, 26 PI #2). People who visit Baskin-Robbins are hoping to socialize and enjoy the company of others. It is important for their location to be near their target market. For them, this means being located near a busy street, in a highly populated suburb, and near sporting events and schools. Customers indicated that location was a major factor in deciding where they would indulge in a tasty frozen treat (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12). Customers do not likely go out of their way to visit a Baskin-Robbins. Instead they go to them because they are near a
  • 18. 18 baseball field, within biking distance of their house, or close to a school (CI #5, 11, 12, 13, 14, 15, 18, 21). Baskin exclusively sells their product in their store, which results in more of a desire for their product. It is likely that if they were to offer an option in grocery stores or other locations that it would lose its value. A majority of the Baskin experience takes place in the process of sitting down with friends and family to enjoy time with them. Customers came in groups, flocking to tables in hopes of discussing various topics of their day’s events, the latest school gossip, or simply just enjoying someone’s presence. Baskin does not currently offer a drive-through or delivery option. This is largely to do with its emphasis on experience. Creating an emphasis on speed would take away from a primary customer decision-maker – time and experience (CI #2, 3, 13, 16, 19, 26 PI #2). Additionally, there is an element of keeping the ice cream cold and the product that could take away from their image. Additionally, the presence of different competitors has a major impact on the location of this particular store. Surrounding food stores and the fact that they are the only ice cream shop in the strip mall brings customers into their stores. They have a variety of close competitors within 3 miles of them, including other Baskin locations, Honeymee, Cold Stone and Yogurtland Baskin-Robbins is strategically placed near a busy road, middle schools, baseball fields, and in a densely populated suburb. They are appealing to their target market by creating a convenient location. They are open late at night and closed early in the morning to appeal to the convenience of people hoping to celebrate late into the night (Professional #10, Website #3). Place Strengths: • Walking distance to homes: Families ride bikes to location to enjoy family time (C.I. #11-15, 16) • Close to sporting activities: Parents take children after soccer game at nearby field (C.I. #16) • Visible from a busy road: Locations on busier areas create more customer traffic. • Open late at night Place Weaknesses: • Proximity to competition: Having other ice cream shops in the area takes away from the business (Professional #10) • Strip mall is not very busy and is run down (Professional #6)
  • 19. 19 PROMOTION ANALYSIS & DISCUSSION Promotion Objectives: Baskin-Robbin’s current promotional objective is to evoke behavior and stimulate demand. They are aiming to lure in customers through promotional events and discounts, advertisements, and new flavors. Baskin-Robbins has a nationwide presence, so their promotional objective is to get customers who know their name into their stores to purchase products. Promotion Strategies: Baskin-Robbins aims to evoke behavior and stimulate demand through the use of coupons and promotional rewards. Baskin-Robbins launched a campaign this year called the “Celebrate 31” promotion, where $1.31 ice cream is offered each month with 31 days (Website #3). Customers come to Baskin-Robbins because of their “Dollar Scoop Tuesday” promotional events (Customer #5). They offer online coupons and promotions through their website, including special email offers and cake discounts. You can sign up online to be a member of their Birthday Club, where you can get a free ice cream on your birthday (Website #3). Baskin-Robbins knows that customers use ice cream as a form of celebration and social events; some customers only visit the shops a few times a year (Customer #12, 14, 28). In order to stimulate long-term customers, Baskin participates in advertisements that get the nation talking in order to stimulate sales and demand. They use their Twitter and Facebook pages as a platform to announce specific promotions and giveaways (Website #3). Baskin relies on word of mouth to make these promotional events a success, but does not do so to create long-term customers. Instead, customers are reminded of the company’s presence through these events and return if they have a positive experience (Professional #10). In regards to their national promotional presence, Baskin-Robbins has created a variety of successful commercials that get customers talking. In 2011, Baskin released an ice cream cake commercial with the catchy lyrics “Ice cream and cake do the ice cream and cake (Website #21). This in addition to a variety of other Mothers Day and Fathers Day commercials have encouraged customers to purchase cakes to celebrate different occasions. Baskin-Robbins also partners with Party City to create a brand continuation in regards to their birthday cakes (Website #3). The primary intent of Baskin-Robbin’s message is that they are affordable and they are always present. The consistent promotions and events are a great reminder to customers that they offer an affordable product and a great opportunity to celebrate any life event. Signs outside of their doors, on Beach Blvd., and advertisements on the windows for their “Celebrate 31 promotion” give customers the idea that Baskin is looking for a way for them to save money while still celebrating. Customers revealed that they are looking for that, too—affordable and delicious is hard to say no to (CI #1, 13 PI #5). Unlike competitors like Cold Stone, Yogurtland, Ben & Jerry’s and Honeymee, Baskin- Robbins is always looking to remind their customers that they are present through the use of promotional discounts. While this does drive conversation regarding their product, it does lower the brand image and make the product appear lower quality to customers (Customer #4, 28).
  • 20. 20 Promotion Strengths: • Frequent promotional options bring customers in (Customer #28) • Customers know they kind find ice cream here for less than more expensive competitors (Customer #13) • National recognition and promotional discussion brings customers into their stores (Customer #12-16, 28) • Commercials that draw attention to ice cream cakes (Website #21 Promotion Weaknesses: • Signage could be improved for the La Mirada store to improve visibility from busy road (Professional #6). • Brand image and quality of product might be lowered because of the emphasis on promotion and saving money (Customer #28, • Too many promotional advertisements and decorations can be distracting and cluttered. One interviewed customer mentioned they are embarrassed to go to shop because of outdated and cluttered promotional advertising (Customer #4, 16, 17, 18) WEBSITE ANALYSIS & DISCUSSION Website Objectives: Bakin-Robbin’s website objective is to inform customers about what they offer customers, promote their different products, and inform customers on where they can get their products. The goal of their website is to convince customers to purchase their products and promote the products that customers would not necessarily consider purchasing. Their website is all about promoting who they are and how customers can get on board—whether that is through promotions, online ordering, or opening up a new franchise (Professional #6). Baskin-Robbin’s corporate website is found at: https://www.baskinrobbins.com/content/baskinrobbins/en.html The company also has an application that is downloadable to mobile devices. Reviews can be found on Yelp: http://www.yelp.com/biz/baskin-robbins-la-mirada-2 Website Strategies: The Baskin-Robbins website brings value to its customers because it aims to make their product more appealing to customers. Whether it is through pictures of different cakes, explanations of different flavors, a customizable cake ordering system, or looking up where the nearest location is, their website exists to make their product more accessible and appealing. The first thing that customers notice when visiting their website is their unique logo and headings (Ice cream, cakes, the scoop, online ordering, and find a shop). The website highlights a photo reel of four different shots of their products, whether they are cakes, promotions, ice cream, or a flavor of the month. These pictures help customers remember the delectable dessert options being offered and inform them of new promotional opportunities. The website is also convenient because it has an option for finding shops, learning more about the company, exploring the option of franchising, and even ordering customizable cakes. The customizable cake option is interactive and creative, allowing customers to choose exactly what they want and then allowing a delivery to their preferred shop. The Baskin-Robbins website also has an account option where you can sign up for promotions and interactive discounts. While their website fulfills a variety of needs due to its corporate nature, it does appear impersonal and bland (Professional #6). While it seeks to interact
  • 21. 21 with customers and fulfill informational needs, it is clear they are hoping to earn your business, not meet your needs through clear information pathways and background regarding their store. As far as La Mirada’s specific location, very few steps are being made to interact with local customers online. While there is a Facebook page created for this specific location, it is not operated by the owners. Customers use Facebook as a place to track where they have been through social media tagging. Additionally, Baskin-Robbins La Mirada does not have an online presence outside of Yelp. By choosing to interact with customers in the area through social media, they could create more of a traffic flow into their location. Website Strengths: • Website has interactive personalization options for making cakes • Represents their brand and displays their product well • Offers promotional discounts and opportunities for free ice cream • Answers questions regarding corporate franchising while also appealing to customers Website Weaknesses: • Promotional heavy and very clear they are hoping to earn your business rather that answer questions you might have if you were a customer looking to answer basic questions (i.e. where is the nearest shop, how is the product made, different flavor options). • Navigating the site can be difficult because there is such an abundance of information being communicated. • Impersonal and does not give customers a place to give feedback • Customers with complaints go to Yelp and Baskin does nothing to address these concerns
  • 23. 23 POSITIONING MAP #1 Cold Stone offers an element of creativity and customization, both of which customers enjoy (CI #1, 13, 28, 29, 30). While customers are looking to indulge in a sweet treat, they are also aware that the product is highly processed and the mixtures are distributed throughout the country (Customer #1, 3, 3, 4, 13, 14, 15, 28 Professional #11, 12). The product is mixed in the stores, but the formula is shipped throughout the country and lacks freshness (Article #8). Creative Experience Simple Experience Fresh Ingredients Highly processed A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee A B C D
  • 24. 24 POSITIONING MAP #2 Cold Stone appeals to a more adult environment with their abundance of rich and creamy desserts. Kids often are looking for cotton candy and colorful options, something Cold Stone is lacking in (Customer #12, 13, 21 Professional #11, 12). Customers also complained about a lack of seating during busy times. A majority of customers attend ice cream shops in order to fulfill a social need. Not having enough seating is a major deterrent for customers and this appears to be the case for this particular shop (Customer #20). Always Enough Seating All About Kids Hard To Find a Place to Sit All About Adults A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee A B C D
  • 25. 25 PRIMARY TARGET MARKET ANALYSIS 1. Primary Geographic: I ranked primary geographic first for Cold Stone La Mirada because it seems to be the leading reason why customers choose this shop. They are located in a strip mall with proximity to the La Mirada Dollar Theater, Panera, La Mirada theatrical center, Biola University, and a densely populated suburban area. When professionals at Cold Stone were asked what the number one reason people came to their store they believed the movie theater and proximity to other food places brings people there for social events. 1. Proximity in strip mall to other food places (Panera, Starbucks, Thai Cuisine) 2. Proximity to theaters: La Mirada Dollar Theater and the La Mirada theater for the performing arts (Professional #7, 8) 3. Proximity to Biola University (Customer #1-5) 2. Primary Benefits: I ranked primary benefits second because the unique experience is what sets Cold Stone apart from its competitors. Next to location, the benefits that Cold Stone offers its customers are what brings them into their store. Because Cold Stone addresses a wide demographic and psychographic, their product appeals to a large crowd and having a variety of specific benefits is important for their company. What brings customers into Cold Stone is the desire for a luxury ice cream—a benefit not many of their customers can address. 1. Creamy, rich, luxury ice cream (Professional #5) 2. Interactive experience 3. Choosing a variety of flavors and toppings 4. Creative “love it” “like it” options for sizing 5. Hand crafted waffle cones 6. Displayed ice cream flavors 7. Fruit options 3. Primary Psychographic: The psychographic section is ranked third because there are a variety of different types of people who enjoy the product Cold Stone offers. When asked, Cold Stone employees said a variety of their customers were families, teenagers, and adults. The psychographic of the La Mirada branch is closely connected to its location and the geographic elements that bring customers into their store. The values of these customers are commonly related to a broader value for spending quality time with family and friends. Celebration is another major element that brings customers into Cold Stone. I ranked psychographic third because there are many ways customers could choose to celebrate beyond Cold Stone. Many different values bring customers into Cold Stone locations that could be fulfilled in a variety of other options. 1. Luxury ice cream 2. Spending quality time with family and friends 3. Celebrating 4. Morals 5. Trying creative flavors 6. Indulgence 7. Spending extra money for a more quality product
  • 26. 26 4. Primary Demographic: Demographic is listed last because Cold Stone seeks to reach a larger group of people. Anyone who likes delicious ice cream is the primary demographic of this product. People from all races, ages, and genders enjoy ice cream. This does not mean, however, that specific demographics do not tend to be more likely to visit Cold Stone shops. Cold Stone appeals to a more mature audience than Baskin-Robbins due to a more mature branding technique and a richer texture and flavor options. Male and female 16-35 year olds that are white are most likely to attend this particular location. PRODUCT & CUSTOMER EXPERIENCE Product Objectives: Cold Stone’s product objective is to create a premium frozen dessert option with customizable toppings that appeals to customers looking to enjoy a social outing with friends and family. • Creamy and delicious frozen treat (Customer #1, 3, 5, 17, 18, 19, 20, 28) • Customizable (Customer #28) • Unique experience (Customer #18, 19) • Create a higher-end experience than competition (Customer #4) Product Strategies: Cold Stone prides itself in being the “Ultimate ice cream experience” (Website #2). They separate themselves from the competition by providing a premium product at a premium price. The product was developed in 1988 and they sell ice cream, prepackaged cartons, cakes, pies, shakes, smoothies, frozen yogurt and sorbet (Article #8). The Cold Stone product is directly connected to the experience of choosing and developing what the customers wants. While they offer a variety of different products, a majority of customers are looking for a single scoop customizable treat (Professional #2). Customers begin by walking in and identifying what they want their standard ice cream flavor to be. Customers can choose a pre-selected product from a menu or customize their dessert to fit their exact customization needs. A unique strategy that Cold Stone uses is that they allow the customer to choose exactly what they want and they get to watch the process of their creation come to life in front of them through the handcrafted process of a granite slab. Everything that is made, from cones to ice cream, is fresh and handcrafted (Professional #5). Cold Stone is the creamiest ice cream in the industry and they deliver a premium product. Cold Stone customers are looking for delectable culinary experience. Customers of Cold Stone are committed to the treat being made in front of them and are willing to spend premium money and calories to experience what their unique dessert has to offer. Employees begin by asking customers what flavor they would like, then they mix the various toppings on a granite slab and place it in either a “like it” “love it” or “gotta have it” bowl. Employees are trained to be friendly and engaging—whenever a customer tips the employees, they are asked to sing a song for the customers (Article #5, Professional #2). When customers walk into the store, they are immediately surrounded by rich colors and textures. The rich red paint and chocolate posters and menus highlight the product itself, displayed for customers to see. Their compelling advantage to the customer is just this—they exist to serve the customer’s sugary needs at a premium level. The ice cream is creamy and fresh, displayed in stainless-steel tubs rather than pre-shipped tubs of already made ice cream. Professionals hand make the waffle cones each day. Ice cream cakes are hand crafted with rich decorations and displayed in refrigerator cases in the front of the store. The emotional connection
  • 27. 27 for customers is completely directed in the food that they are eating—the creamiest, richest, most delectable ice cream in the market that is made just for you. Unlike competitor #1, Cold Stone has created a product image and experience that communicates premium value and indulgence. Cold Stone appeals to a more adult audience with its customizable and delectable creamery options. Everything from their cones to their ice cream cakes are handcrafted with the customer in mind. Product Strengths: • High brand image is communicated to customers through their creamy ice cream and premium product (Customer #1, 3, 5, 18, 19, 20) • A variety of topping options and flavors (Customer #1, 5) • Fresh ingredients displayed in stainless steel cases (Professional #6) • Waffle cones made daily (Professional #2) • Employees are friendlier than competitors and sing for customers (Professional #1 Customer #19, 20, 21, 28) • Nostalgia for many customers because they grew up going to shops around the country (Customer #3) • Trendier than competitor #1 (Customer #2, 3, 4, 27, 17, 18, 28) Product Weaknesses: • Seating is lacking (Customer #24) • Unhealthy and rich (Customer #5, 6, 10, 28) • Very few kid options and not as kid friendly (Customer #13, 14, 16 Professional #8) • So creamy and rich it makes people’s stomachs hurt (Customer #2, 5) • High price for a small cup of ice cream (Professional #5) • Few sorbet options and doesn’t cater to dietary restrictions (Customer #2)
  • 28. 28 PRICING ANALYSIS & DISCUSSION Pricing Objectives: Cold Stone’s objective is prestige—they price high in order to communicate that their product is the best in the industry. If they marketed their ice cream as being one of quality and the best in the industry then failed to communicate that with their pricing, it would likely create an inconsistent message for the customers. Cold Stone has taken the unique objective of communicating that their ice cream is made with quality and is worth the extra money spent. A family going to Cold Stone would likely be spending $20 more than they would if they went to the grocery store and bought a carton of ice cream. Creating a premium product at a premium price is what sets them apart in the industry. Pricing Strategy: Cold Stone wants to make it clear to their customers that they take their ice cream seriously. Charging more money for their product can create the illustration that they put the extra money into their product to get a better product for their customers. Cold Stone takes a unique strategy of presenting three different sizing options: “Like it” “Love it” and “Gotta have it.” This unique naming strategy communicates an encouragement to invest the extra money to get a little more. The $0.25 price difference between the “like it” and “love it” is another encouragement for customers to put in a little more money to get a lot more ice cream. Cold Stone has used this unique marketing strategy to convince customers that they are getting more for their money. The main goal for Cold Stone is to sell more ice cream. Convincing customers that they are getting a gourmet product and convincing them to spend a little more for a lot more product shows that they are interested in creating a premium product for their customer. Behind Ben & Jerry’s ice cream, Cold Stone sells the most expensive product in the industry (Website #20). Interviewed customers were aware of the high expense of this product as well. Many said they only purchase Cold Stone ice cream 3-4 times a year, but when they do it is a major treat and expense (Customer #1, 3, 4, 5, 14). One customer even said that they go to a certain shop with certain friends if he knows that they are wealthier because he doesn’t want to make his friends spend more money than they want. Cold Stone has clearly communicated that their ice cream is premium and customers have caught on. Baskin-Robbins Cold Stone Industry Average Single Scoop $2.79 $5.00 $3.22 Double Scoop $3.99 $5.25 $4.35 Take Home Quart $5.99 $8.00 $6.33
  • 29. 29 Pricing Strengths: • Incredible margins because of their premium pricing (Article #8). • “Like it” “Love it” “Gotta have it” sizing technique • They have marketed themselves as being a leader in the industry because they charge more for their ice cream than most and customers respond with a high respect and appreciation for this delectable product (Customer #4, 5, 18, 19, 20, 23, 28). Pricing Weaknesses: • High end of the pricing scale—1.8% higher than the industry average (Professional #6) • Incredibly rich and unhealthy (Customer #2, 5, 20). PLACE ANALYSIS & DISCUSSION Place Objective: Cold Stone La Mirada’s place objective is to provide a convenient location for their customers with proximity to highly populated suburbs, other eateries, theaters and Biola University. Cold Stone locations around the country are typically in malls, shopping centers, and near other eateries. Cold Stone was trying to accomplish a location near their target market— customers looking to celebrate on the weekend or weeknights after a movie, on a date night, or simply close to a populated area. Place Strategies: Cold Stone makes their product available to customers by advertising their sign from Rosecrans Avenue. Customers can see their sign from this busy road and from La Mirada Dollar Theater, so it allows customers to understand their options before or after a movie. Cold Stone is within close proximity to Biola University, La Mirada Dollar Theater, La Mirada’s Center For Performing Arts, Panera Bread, La Mirada Park, and four densely populated suburban communities. They strategically have chosen to keep their stores open later because they know their customers are looking for a late night reason to celebrate (Website #2). Most of their target market is working during the day, so they have chosen their hours to be 12pm-10pm Sunday- Thursday and 12pm-10:30pm Friday and Saturday (Website #2). Customers getting out of
  • 30. 30 movies late, looking for a late night adventure, or have just finished a play at the Performing Arts Center are looking for a treat late at night (Professional #8). Cold Stone does not have any direct competitors in their shopping center, a strategic move to get customers from the surrounding theaters and eateries to only choose them for a dessert choice. Surrounding high schools and university students choose Cold Stone as a great place for social outings in the evenings and afternoons (Customer #28). If Cold Stone were to move their location two miles away from their current location it would likely cause them to lose business because of the various surrounding establishments that currently bring in customers. Cold Stone would do well in a shopping mall, but would need to be near surrounding activities such as movie theaters and shopping centers to bring in the customers they currently see. While the current location of Cold Stone La Mirada is doing well, choosing a larger location with more seating would likely drive in more business for their company (Professional #8). Changing the way they deliver their product by creating a more convenient means (Drive through or stand) would likely take away from their image of being a sit-down ice cream experience (Article #4). While their location is centrally located to a variety of establishments that draw customers in, choosing to place that makes their location stand out could prove more beneficial for Cold Stone. Unlike Baskin-Robbins, you can see Cold Stone from a busy road, they are yards away from the busiest theater in La Mirada, and are in close proximity to Biola University. Because Cold Stone appeals to an older audience, this is a strategic choice for them. Place Strengths: • Open late at night (Customer #1, 2, 3, 4, 5, 17, 18, 20, 21, 28). • Close to La Mirada Theaters (Customers #22, 23) • Close to Biola University (Customer #1, 2, 3, 4, 5, 28, 29) • Easily accessible for surrounding suburbs (Customers #22, 23) Place Weaknesses: • Small sign and store does not stand out (Professional #6) • Not enough seating for customers (Customers #22, 23) • Strip mall location does not communicate the prestige and expense of Cold Stone’s product (Customer #28) • Parking can be difficult when crowded (Professional #3)
  • 31. 31 PROMOTION ANALYSIS & DISCUSSION Promotion Objective: Cold Stone’s promotional objective is to emphasize the benefits of their product in the marketplace in order to draw customers into their stores. Their goal is not to bring customers in for the first time. Instead, they are aiming to remind customers about why they like their product. Promotion Strategies: Cold Stone’s promotional strategies range from national attention to local promotion. Their objective of reminding customers of their benefits is evident in their TV commercials and website (Website #2). Like Baskin-Robbins, Cold Stone has an online promotional subscription that gives customers the opportunity to get free ice cream. Their online promotional program, or My Cold Stone Club™, allows customers the opportunity to buy one creation and get a free creation coupon delivered to your house (Website #20). Gift cards, 20% discount for Biola students, and Birthday coupons encourage customers evokes behavior and stimulates demand (Professional #1). The main goal of the promotional goals of Cold Stone is to emphasize the benefits of their products in the marketplace. They do this through their in-store decorations, online advertisements for Holiday cakes, and the way in which they display the products they are serving to their customers (Website #2, Professional #2). The different labels for sizing—“like it” “love it” and “gotta have it” for the individual servings and the “mine” “ours and “everybody” option for the pre-packaged sizing emphasize the benefits of the product, encouraging customers to develop a respect and need for the product (Website #2). Other promotional options involve creating your own ice cream online, ordering your ice cream from a smartphone app, an online social stream page, and a page on their website dedicated to their history (Website #2). Instagram offers free promotion by displaying the delectable different treats customers, emphasizing the way in which each store individually handcrafts their ice cream (. Cold Stone’s promotional strategies are effective because customers have developed an appreciation for the value of their products rather than feeling an incentive or promotional coupon getting them into their stores. Customers have developed a respect for the Cold Stone name because they have a respect for themselves (Customer #1, 2, 3, 4, 5, 17, 18, 19, 20, 24). Additionally, word of mouth is an effective tool for their company. Many customers interviewed from Biola came to love Cold Stone near Biola after hearing from others about the value of the product. Unlike its competitors, Cold Stone does not bribe their customers into their shops. In fact, they have found this to be incredibly detrimental to the financial success of their franchises, even putting different locations out of business due to a loss in profits (Article #3). Additionally, Cold Stone is critical about the ways in which they reward their customers. They promote an appreciation for the product they are rewarded by the product itself, not necessarily a discount. Promotion Strengths: • High brand respect from customers (Customer #1, 2, 3, 4, 5, 17, 18, 19, 20, 24). • An understanding of the product’s value (Customer #1, 2, 3, 4, 5, 17) • Promotion emphasizes the benefit of the product rather • Customers want their product because it’s good not because Cold Stone wants to sell their product
  • 32. 32 Promotion Weaknesses: • A lack of promotional effort to communicate what the product is to those who have never heard of what they offer and the experience it brings • Customers perceive the product as premium and avoid the product because it appears too expensive (Customer #13). WEBSITE ANALYSIS & DISCUSSION Website Objective: Cold Stone’s objective with their website is to inform customers of the value that their product has to customers, provide convenient ways for customers to order food, and provide promotional deals and coupons. Cold Stone’s website is found at: https://www.coldstonecreamery.com. The company also has an application that is downloadable to mobile devices. Reviews can be found on Yelp: http://www.yelp.com/biz/cold-stone- creamery-la-mirada-2 Website Strategies: Cold Stone’s website opens up to a large photo of a delicious ice cream treat. It continues to a reel of various delectable Cold Stone creations. The main goal for their website is to offer convenience for their customers by offering easier ways to order cakes, food, and gift cards. Cold Stone’s website communicates a deep pride for the way that the make their food—through the focal point of their logo, slogan “Because the world deserves better ice cream,” and an emphasis on information about their ice cream. Cold Stone is looking to inform their customers about their product by communicating what it is they are offering to their customers. Pages are devoted to the health information of each product offered, the history of the corporation, and the various steps they are taking to offer more options for people with different health restrictions. This website provides value to their customers by creating convenient store look up functions, an application that allows customers to order food from their phones, and social media displays with their follower accounts. Instagram offers free promotion by displaying the delectable different treats customers, emphasizing the way in which each store individually handcrafts their ice cream. Website Strengths: • Everything on the website is about the customers and the value of their product • Unlike their other competitors, they do not beg their customers to visit their stores with promotional coupons. • Franchising information is hidden Website Weaknesses: • App is poorly designed and customers are unlikely to download simply to purchase their product • Graphics can appear outdated at times • Yelp complaints are not channeled to address complaints
  • 34. 34 ETHICAL ISSUES & ACTION PLAN A. The Situation: A mom and her three kids walk in to my ice cream shop. It is late in the afternoon and they are wearing dirty clothes and appear to be coming from school. The kids look excited and the mom looks especially tired. I welcome the family in and ask how their day is going. The kids are timid but are noticeably excited about being in the shop—Their eyes as wide as saucers and it is fun to see them get so excited. As the kids decide which flavor they are going to get I start talking with the mom. When she first walked in I noticed she looked tired, but now she looks sick. Her eyes are bloodshot and her arms have red marks. It is clear after talking with the mom that she struggles more with a lack of sleep—Her words are slurred and she is struggling to answer basic questions. I let the kids all choose their ice cream flavors and then I ring up their prices. Combined their total is $15.75. The mom fumbles around through her purse looking for her money and starts counting out change, stacking up quarters and dimes until she barely reaches $3 in change. “I’m so sorry, kids. Mama got paid today but I can’t find the money.” The kids all look frantic and embarrassed. The shop is empty but it is clear that the kids are embarrassed for me—this is something that has happened before. The mom has a drug issue and is using her money to fuel her drug addiction and not pay for her kid’s ice cream. Unfortunately this becomes a frequent problem—after dealing with the problem one time by paying for her ice cream with my own money, she continues to come into the store with her kids. Now I must decide what I will do. I don’t know if these kids are safe. B. The Tension: The personal tension for me is that I have been a nanny for many years and I have an awareness of what it takes to take care of children. If people are not able to take care of themselves, it is unlikely that they can take care of children. Allowing this mom to continue her drug addiction is difficult for me. I am worried what other customers will think if this becomes a habit. I do not want to overstep into another person’s life, but there is a tension as a Christian to help these kids. There is a tension as this woman’s peer to defend her image towards her kids. There is a financial obligation to defend my shop and cause it to not lose profit. There is a legal tension if she starts stealing from my shop by expecting frequent free ice cream. C. Ethical Dilemmas: a. If I do nothing I risk the possibility of these kids not being safe. b. If I continue to give her free ice cream I lose profit and it could risk the image of my shop. c. If I ask her to stop coming to my shop I could be perceived as not having good customer service. D. Biblical Principles: Luke 3:10-11 “What should we do then?” the crowd asked. John answered, “Anyone who has two shirts should share with the one who has none, and anyone who has food should do the same.” à Jesus talks often in His time on the earth about helping the poor and the needy. This command would cause me to struggle to not do something for this woman and her family. Whether that means buying her ice cream with my own money, seeing if she is capable of taking care of these children, or simply asking how I can be praying for her. Caring for the poor and needy is an essential part of the Christian walk.
  • 35. 35 Galatians 5:20 “Envy, drunkenness, orgies, and things like theses. I warn you, as I warned you before, that those who do such things will not inherit the kingdom of God.” à I do not know if this woman is a Christian or loves the Lord, but God commands His children to not walk in drunkenness. As a follower of God my heart would break as I witness another child of God walking in destruction for her sake and her family’s sake. E. Action Plan: Because this has become a regular occurrence, I would confront the lady and ask that she does not continue coming back if she cannot pay for her ice cream. I would put her in touch with food shelters and my church’s homeless ministry. If she keeps coming back I would contact the police. While I feel comfortable becoming her friend and paying for her ice cream once or twice, there is a fear that I will be encouraging the sin in which she is walking in. By connecting her with resources she would no longer feel a need to get free food from my shop and I would be addressing my concerns for her health and her children’s help. I would check in on her to insure she is doing better after connecting her with my church’s ministry. F. Rationale: While I feel comfortable covering her ice cream one time, there is a fear that she might take advantage of my shop. By connecting her with resources and confronting this problem personally, I am addressing all of the concerns. If she continues to come back to my shop and fails to seek help from my resources, I will contact the police to protect this woman, her children, and my shop’s image. SWOT ANALYSIS Strengths: • I have spent hundreds of hours researching the different demands and needs of the industry • Consistent need for ice cream • In doing this research I have identified a narrow target market and need through customer and professional interviews • Younger perspective of the wants and needs of the industry • An “outsider” coming into this industry could create fresh ideas that would expand the industry Weaknesses: • No experience in this particular industry • Many other dessert alternatives • Brand image is non-existent • Highly competitive and well developed industry with a majority of sales going to large corporations (Competitor #1, 2) • Creating a highly specific target market could be too risky and turn customers away if it does not apply to them
  • 36. 36 Opportunities: • The changing needs of the market reveal new opportunities • A growing demand for healthier products and more creative techniques • I have management experience and administrative training that could lend itself to this process • I will be given the opportunity to stand on a large platform to preach the gospel to my employees and customers • Opportunity for personal growth and learning Threats: • My competitors could take away my customer base if I am not strategic in the way that I address customer needs • Growing hipster and trendier shops could become a growing threat • Health concerns could take away from my customers • Legal implications if mistakes are made by employees or myself COMPETITIVE ADVANTAGES 1. Problem: Environment does not encourage customers to stay for long periods of time (Customer #23, 24, 25) Solution: Providing an abundance of seating will encourage customers to stay a long time and feel welcome to socialize. Customers going to an ice cream shop are looking to fulfill a social need, so seating and environment is incredibly important (Article #6). In order for customers to feel confident about their decision to go to a shop rather than choose store-bought ice cream there must be an abundance of seating and a clearly communicated place for people to engage in social gatherings. 2. Problem: Products not geared towards children (Customer #10, 11, 12, 13, 21) Solution: Offering more colorful, vibrant flavors with kids in mind. Smaller sizes, unique touches including whipped cream, sprinkles, and toppings. Kids like an experience that is engaging and customizable. Making facilities geared to the specifications of children—display windows, menus, and decorations. Vibrant colored flavors with kids and parents in mind. Exploring the possibility of creating an entertainment option for children while their parents are socializing (rock wall, jungle gym, crafts) would fulfill a popular demand that came up in interviews (Customers #10, 14). 3. Problem: Outdated/ uncleanly shop facilities (Customer #4, 18, 19, 30) Solution: Updated display cases, flooring, lighting, and hiring a designer to create an updated facility. Only choosing locations in updated shopping and strip mall locations will lend to a cleaner image for the company. Interviewed customers mentioned they chose to avoid certain shops because their shops were outdated and uncleanly (Customer #30).
  • 37. 37 4. Problem: Unhealthy and inorganic ingredients (Customer #5, 10, 11, 12) Solution: An increased social demand for healthier ingredients has challenged people’s desire to enjoy a dessert option (Article #8, 9, 10). More awareness of how food is processed creates an opportunity for my third product to stand out in the industry. I plan to use organic ingredients, make my product daily, and provide healthy options for my customers. Using local ingredients and creating relationships with local farmers creates an ethical opportunity to not cut corners and provide honest, whole products for customers. While my dessert may not compromise the sugary treat people are looking for, organic and local ingredients will be utilized. 5. Problem: Employees lack friendliness and customer service (Website #1, Customers #3, 30, 31) Solution: Training employees to engage with customers in order to make the ice cream experience a positive one makes all the difference. Interacting with the process of making the ice cream adds the extra touch that makes spending 200% more than store-bought options worth the investment (Article #3). Solutions could include specific songs sung by employees for each different item, a performance element to the process, or a specialized cup or cone for kids. Exploring the possibility of hiring trained chefs for each location could add an element of passion to the service experience. If customers see that the employees are passionate about the process, they will be more likely to invest in the ice cream process (Customer #30). Choosing to never have an employee work alone (like they do at both Cold Stone and Baskin-Robbins), customers will sense a real passion and friendliness if they are working with a pair of friendly employees. INTERNAL MARKETING STRATEGIES FOR 3RD PRODUCT Quality & Consistency: Potential Concern #1: Inconsistent taste Potential Solution #1: Because the ice cream will be made fresh each day in the shop, it is possible that the product could be inconsistent if not made properly one day. Customers could grow concerned that the product they are receiving is different each time they order a product from us. By creating a systematic process and purchasing machinery that creates a consistent ice cream texture and flavor, our brand will remain intact and customers will know what to expect from us. Hiring a chef that makes the ice cream the same way each day and training employees to follow protocol for the different orders and topping combinations, a system will be in place to create a consistent product with a delicious taste. Potential Concern #2: Messy store Potential Solution #2: Hiring an abundance of employees and assigning job rotations will create a system that can solve this problem. Customers never enjoy sitting in spaces with melted ice cream on the tables, napkins scattered on the floor, or a messy floor. By training employees to clean these messes as part of their job, customers will likely never see the store in a messy state. Weekly deep-clean crews will insure that the shop is meeting code by creating a cleanly working environment each week. Working more staff than originally seen as necessary will be vital to the success of this business and the cleanliness of the shop. Assigning a “floor worker” during the busy hours to bus tables and interact with employees will insure that each customer is being tended to if they are in need of napkins or need a table wiped down
  • 38. 38 Employee Satisfaction and Training: Potential Concern #1: Uninterested employees Potential Solution #1: Cowlick Creamery must be a fun environment and we need to insure that employees are passionate and excited about their work. This will be achieved through training programs and management meetings. Hiring employees who thrive on customer interaction and enjoy serving others will set this company apart from the beginning. Training customers to bring passion to their work will be vital. Rewarding good customer interactions through a rewards program and employee compliment board will encourage a positive employee environment. I will be hiring employees who are older than most ice cream shop employees and will be paying higher than minimum wage payment. Working with the employees and asking questions about their lives and their experience at the company through monthly one-on-one meetings will allow a place to encourage employees to pursue more passion and excitement in their work. Creating a chalkboard in the back of the store that creates a place for employees to record their favorite moments of a shift or encouragement to other employees will develop a sense of community and more passion for their job and community. Potential Concern #2: Employee gossip Potential Solution #2: I will have a low tolerance for gossiping (3 strike rule). Whether it is overheard gossip about customers or other employees, this is something I am unwilling to compromise on. Employees will know this from the beginning through training and will be aware of this policy. If it is found out that employees are speaking poorly about others, there will be a formal warning. If it happens again we will discuss if it is better for them to no longer work at the company anymore. It is vital to have a positive employee working environment, because customers can see more than you might think. Customer Service: Potential Concern #1: Unfriendly workers Potential Solution #1: Intense training and weekly manager meetings will set the bar high for employees. Hiring employees that are passionate about people rather than those who are just looking to make money and gain experience at their first job will be a key part of interviewing employees. Because customer service was a main complaint for customers attending Baskin- Robbins, I want to insure that this is addressed with my employees. Insuring that there is always more than one employee working in the shop will create accountability. Rewarding good customer interaction experience by setting an “Employee of the Month” program up will create an incentive for employees to interact more positively with customers. Encouraging small talk and giving employees the resources to create long-term customer interactions will set our company apart.
  • 39. 39 Potential Concern #2: Unsatisfied customers Potential Solution #2: Rather than having customers turn to Yelp where complaints can affect future business, a system will be in place for customers to respond to the service they have received. Our shop will have interactive iPads or comment cards displayed to record customer response and feedback. Rewarding customers to take these surveys by rewarding them with the possibility of free ice cream in the future will create a place for customers to feel heard if they were unsatisfied with their product. Personally emailing customers if they had a bad experience will give our company a chance for the customer to give us another chance Research: Potential Concern #1: Unpopular flavors Potential Solution #1: Recording the number of ounces each flavor of ice cream sells each day will give the chef an idea as to the popularity of each flavor. Making a chart for each day and recording the number of ounces remaining for each flavor will help us know which flavors are the most popular and which flavors could be replaced with other, more popular flavors. Potential Concern #2: Disconnect between reality and owner’s perception (ignorance card) Potential Solution #2: Conducting a bi-yearly survey and researching customers through focus groups all-day surveys will help us know where our weaknesses are. Offering a survey through social media and rewarding customers through free ice cream will communicate that we care about their needs and value their feedback. Having a disconnect between how your customers perceive you and the product you are offering could be painful for our company. By reaching out to customers through conversation through feedback and response through iPad comments in the store, we can address concerns throughout the year as well. PURPOSE STATEMENT Cowlick Creamery is all about creating ice cream with farm fresh ingredients and rich, customizable flavors. We have a close connection with our local farmers because food should not only be good, but also carefully crafted. What you see is what you get—from watching the product made in the kitchen behind the counter, to customizing it with your choice of toppings right in front of you, we have put simple back into the art of ice cream. Cowlick Creamery is dedicated to socializing. We offer an abundance of comfortable seating so you can enjoy your ice cream along with a long conversation. Our staff is friendly and well-trained, ready to help you create the creation you have been dreaming up. Our store is kid-friendly, with an abundance of entertainment once they finish their treats. Whether it is the chalkboard wall, rope swing, or farm animal displays, we love kids and encourage playfulness. Cowlick Creamery’s philosophy is simple: Quality ingredients, kid-friendly shops, and inviting atmospheres that provide positive memories with a small-town feel.
  • 40. 40 WHY WILL COWLICK CREAMERY BE SUCCESSFUL? Cowlick Creamery will be successful because it addresses the wants and needs in the industry. Ice cream shops have taken the social out of ice cream, focusing primarily on getting you the product you want. Customer interviews overwhelmingly stated that choosing to purchase ice cream comes from a social need and they are really looking for a place to enjoy time with a friend. A tasty treat is an added bonus! Cowlick Creamery will address these concerns. The shop will be devoted to creating an abundance of seating for customers. Additionally, our shop will address customer’s growing concern for fresher ingredients. While most customers were looking to indulge in a sugary treat, a common theme of fresher ingredients and more care into the culinary process indicated a real gap in the ice cream industry. Cowlick Creamery is in close communication with the dairy farm it works with. We work closely with our chef to master the perfect recipe. We will be successful because we target a specific demographic—mothers. We are where they are—near shopping malls, yoga studios, YMCAs, and parks. Our success will come from our dedication to the quality and consistency in which we address the needs of our target market as well as the needs that continue to arise in the industry.
  • 42. 42 POSITIONING MAP #1 Cowlick Creamery is placed where it is on this map because customers have indicated a desire for fresher ingredients (Customer #2, 3, 6, 7, 8, 9, 15, 16). Cowlick Creamery is dedicated to farm fresh ingredients without compromising taste. Customers and industry research indicated a desire for more experience-based ice cream (Article #4, 6, 9, Customer #1-30). Involving customers by making the experience personal will differentiate Cowlick Creamery from its competitors. Creative Experience Simple Experience Fresh Ingredients Highly processed A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee E à Cowlick Creamery A B C D E
  • 43. 43 POSITIONING MAP #2 Cowlick Creamery is placed where it is on this map because it is dedicated to addressing a need in the market for a kid-friendly ice cream shop. Professionals indicated a majority of their customers as being young kids, but customers pointed out a lack of kid-friendly options at the various competitors (Professional #7 Customer #10, 11, 12, 21). Additionally, nearly all customers indicated that their choice to attend an ice cream shop was to fulfill a social need. Both competitors lacked seating, so Cowlick Creamery will provide an abundance of comfortable seating (Customer #2, 3, 5, 18 Professional #3, 13). Always Enough Seating All About Kids Hard To Find a Place to Sit All About Adults A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee E à Cowlick Creamery A B C D E
  • 44. 44 PRIMARY TARGET MARKET ANALYSIS 1. Primary Demographic: Cowlick Creamery’s main target market is stay-at-home-moms ages 22-35 with young children looking for a place to catch up with their friends. By addressing specific needs of this demographic, this shop will generate success. The understanding of a need to address this target market came from two customer interviews in particular (Customer #8, 21). 1. Mothers (ages 20-45) with children (0-10) looking for a place to enjoy time with friends without getting childcare 2. All ethnicities 3. Middle to upper income Why: I ranked demographic as the most important element of my shop because it guides a majority of the factors that will differentiate us from other shops. Who our customer is will be the most important element of our shop. Why: I chose this target market because I saw a need in the industry. Mothers often go to coffee when they are looking to catch up with friends, but this creates a distraction if their kids are not entertained (Customer #8, 21, 31). Narrowing in on specific needs of this demographic will differentiate Cowlick Creamery. 2. Primary Psychographic: Cowlick Creamery is targeting people who value spending quality social time with others. They value talking, socializing, and sharing time with friends and family. Cowlick customers also value the ingredients and care that is in their food. Research found that the leading reason people chose to go to an ice cream shop over purchasing ice cream from the store was to fulfill a social need (Customer #1-30). 1. Family is very important 2. Values socializing 3. Cares about where their food is coming from 4. Thoughtful design and clean atmosphere 5. Good morals 6. Indulging Why: I ranked primary psychographic second because the product we are offering is seeking to fulfill a need for the values of a specific psychographic. People who care about who they are eating with, where their food is coming from, and the atmosphere in which they will indulge is a leading aspect that will get Cowlick Creamery customers to visit our shops. Why: I chose this specific demographic because understanding the target market’s values and ideas that drive their decision-making factors will be a leading factor that will set Cowlick apart from other competitors. By seeing that the customers care about—where the food is coming from, interactive experiences, and fulfilling social needs is essential to the Cowlick Creamery experience.
  • 45. 45 3. Primary Benefits: Cowlick Creamery will offer its customers rich and creamy ice cream with quality ingredients. They will put care into the process of creating their ice cream. There will be a interactive element to choosing their toppings from a small variety of basic flavor choices, which will allow the customer to get exactly what they want. We will offer a large amount of seating—from couches to large tables—giving customers a place to socialize and enjoy a delectable treat. 1. Farm fresh ingredients 2. An abundance of seating 3. Kid-friendly flavors, entertainment, birthday party options, and sizing Why: I ranked primary benefits third because it is incredibly important to the success of the company, but is the result of the two leading factors. Addressing the demographic and psychographic needs of mothers created these primary benefits. Choosing farm fresh ingredients, a place for mothers to socialize with friends and kids, and providing a kid-friendly environment is what will separate us a part from other competitors looking to address these needs. Why: I chose to provide these benefits to my customers because it addresses a variety of needs that came up in customer interviews. Social and cultural factors indicated a desire for more tasteful ice cream with more of an emphasis on the experience (Article #7). Ice cream seems to be a constant want in American culture, so providing benefits that serve a specific demographic and psychographic will be essential to the success of Cowlick Creamery. 4. Primary Location: The location of Cowlick Creamery will be in an upscale suburban shopping area near boutiques, children’s clothing stores, and other eateries. 1. In an upscale old-town downtown shopping area 2. Proximity to women and children clothing shops 3. Large enough store for ample seating 4. Near a large park with a playground Why: I ranked primary location last because it has proved to be a leading decision-factor in why customers choose certain dessert options over others, but I do not feel it leads in this demographic. It will be vital to have my store located near others shops that will draw mothers in. Having close proximity to schools, other shopping areas, hair salons, and other shops that fulfill the social needs of mothers will be vital. However, it follows many of the other leading target market factors. Why: I chose to put Cowlick Creamery in an upscale shopping center because the surrounding shops will draw in many customers with similar wants and needs. My primary demographic wants to be in the hippest places for moms with close proximity to parks and other activities that will entertain a social outing for mothers and their children.