Baskin Robbins the Ice Cream Chain: A Case Study

Introduction

Baskin Robbins, a worldwide known ice cream chain, which offeres the best quality ice creams in the whole world. It was opened in 1947 by two brothers and the main idea was to introduce 31 flavors one for each day of the month. As they believed that people should have a choice in choosing their flavors. In these 60 years, Baskin Robbins has grown immensely and now offers 1000 flavors in ice cream along with other products as milkshakes, smoothies, cakes, etc. with our top-of-the-line products are mint chocolate chips and praline’s and cream continue to delight millions of customers worldwide. Constant industry innovations such as hand-packed ice cream quarts, a unique flavor ribbon technique, the introduction of mousse-textured ice creams, and their signature product, cappuccino blast is really famous. Baskin Robbins has 5600 stores worldwide. Baskin Robbins is the most liked and loved ice cream brand in the world. The company is the best-recognized brand in the USA and now in the whole world which was achieved through emphasizing innovation in the marketing strategy which increased the brand equity. They offered new flavors, which in the whole world no one gives that made it grow towards success, which was unmatchable. From the age of 1 to 99, people visit Baskin Robbins enjoying the pleasure of enjoying their favorite ice creams served the way the customers want. As Baskin Robbins dedicated to being America’s favorite neighborhood ice cream shop. Baskin Robbins stores are visited by 300 million customers a very year, a number that is growing to spread Baskin Robbin’s day by day each year. (Kotler, 2007)

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The company successfully achieved its mission and positioned itself by producing and creating and offering flavors that were not available anywhere else. Since it originated, Baskin Robbins had been introducing innovative and new flavors to mark current events. In the early 21st century Baskin Robbins did a unique way of marketing its products when it tied up with Hollywood to introduce movie-themed ice cream flavors. (Dave,2001)

Baskin Robbins also innovated in the caption line that what’s your flavor? Among the 31 flavors to choose from:

To promote the movie-Sinbad in an innovative way in collaboration with Baskin Robbins as worldwide known ice cream chain in the US as well. As part of the promotion campaign, Baskin Robbins produced a range of ice cream flavors’ such as Sinbad’s Triple Punch Sherbet, Deep Blue Menace Sundae, and Sinbad themed freeze framed cake. The campaign was very successful for both the companies equally.

The mission is to thrill customers, multi-branding, enriching stakeholders and develop strong brands. Baskin Robbins introduced flavors of ice-cream according to region wise as where people like what. We can see that when Baskin Robbins was introduced it was the pioneer but in these years many chains are competitors such as Movenpick ice cream, etc. These competitors might be a big threat to the Baskin Robbins as they are also grown into big brands famous in the world as is the Baskin Robbins.

An analysis of all relevant internal and external environmental issues which might impact an understanding of alternative solutions:

As in every case where there are strengths there are weaknesses as well. And in this case most people found the products very expensive. As Baskin Robbins was selling the best ice cream and was regularly updating and producing new flavors so it was a difficult task not to keep the prices higher than those of the competitors or the local stores. Another complains customers that the outlet could not accommodate more people. These points might relate to the alternative solutions which we can find out from this study that how can we propose solutions to this issue. (Dave, 2001)

A description of alternative solutions and what makes these alternatives attractive:

As we see the first drawback of the worlds most recognized brand Baskin Robbins, as its customers say that it is expensive. We can alternate a few flavors, which are relatively cheaper in price, and hence the customers who can’t afford to have a flavor, which is more expensive than he/she can have that cheaper one. Another alternative to this can be to promote the brand through extensive customer awareness campaigns that aware the customer about Baskin Robbins products about why are they expensive from the other products or ice cream stores, through this alternate solution we can achieve a longer lasting affect on the company’s growth and hence without reducing the prices. As the company cannot compromise on quality so price has to be according to the product’s manufacturing cost. Secondly, improvising and renewing the shape of the outlets and branches can solve the customer complaints that the outlets do not provide enough seating arrangement. Another solution for this might be ice cream or shakes packages should be designed in a way that people can take away and eat it in their cars and we can introduce people with such packaging already available in the Baskin Robbins store and aware people to use that instead of really sitting there and having the ice-cream.

Another alternate can be that there should be specified stores for larger seating and the marketing department of Baskin Robbins can consider providing drive through services in all its outlets so that incase people do not find space to sit inside, then they can enjoy their ice cream or shakes in their cars. (Cavusgil, 2007)

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An analysis of the proposed alternatives detailing the pros and cons of each:

We will analyze the first solution in which I proposed that a few flavor of ice creams should go down in price for those customers who can afford to have a higher price. Baskin Robbins can easily evaluate which of its flavors are expensive to produce and which have expensive and high quality ingredients. After evaluating this, Baskin Robbins can charge high prices for only these expensive ice creams and the rest of the flavors, which are produced at low cost can be sold at low prices. This evaluation of production cost will allow Baskin Robbins to charge prices accordingly and this will in return satisfy the customers who complain about the high prices. This will enhance the sales and demand of Baskin Robbins ice creams on a much wider scale. Moreover, Baskin Robbins can satisfy these complaints by giving special sales promotions such as one scoop free with two scoops of ice cream or one small shake free with two large shakes. These sales promotion and marketing efforts will satisfy customers immensely and they will forget about the high prices.

The pros can be like. As the whole product range wont need to be reduced in prices and only a few products will go down without affecting the whole range.

Cons can be decreased quality of ice cream; brand image will also be affected, through the price reduction. Losses of profits when already Baskin Robbins is a successful brand then why reduce prices? (Kotler, 2007)

The second option which is to drive a promotion campaign which will at the same time aware customers about the quality of the product they are providing and as Baskin Robbins cannot compromise on taste and quality then people should understand the fact that why and how it is expensive from the other local stores.

The pros of this solution are that generally customers and people will be aware about the company well and about its product and then take a wiser decision. Whereas the cons of this solution can be seen as there has been no price reduction actually customers won’t buy the product even after the campaign. (Cavusgil, 2007)

The other drawback or the customer complains which was limited seating arrangement in the outlets. To this issue the solution provided was to improve and renovate the outlet structures and increase seating arrangements. Another solution was to make people aware of the availability of the products packaged for eating while traveling which is also a better option and can be considered rather than improvising the whole outlets. The pros of this solution that it will reduce the cost of renovations and hence make customer happy. The last option to this can be like special outlets for larger seating can be specified and for take a ways also which will help that certain class of customers enjoy those outlets. Again the pros or advantages of this solution will be to provide the customer what he is demanding and the disadvantage is that it will target only a fewer customers who are targeted for this. (Kevin, K. & Kotler, P., 2008)

Recommendations for adoption and the outcomes you expect to occur as a result of adopting:

My recommendations are to use the alternate option in which to reduce the price of some of the flavors of ice cream for those customers who complained that the product is expensive. This way we can satisfy customer demands as well as keep doing our rest of the business as usual. The outcome of this solution adopted might be like this if we see in a positive way customers will be relieved to get the same ice cream in a lesser price. In a negative perspective people can feel discrimination of customers among those who can eat the higher priced flavors or products available in the stream line. Secondly the other solution recommended by me is to introduce larger outlets with larger seating capacities for people who want to sit there and eat and special outlets for take a ways for those people who are traveling. The outcomes I expect to occur as a result of adopting these solutions might be in a positive perspective, people will enjoy the ice cream with larger family units at the outlets. (Kevin,K.& Kotler,P., 2008)

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Where as when we see the negative side the outcome can be that people will in future keep demanding and complaining more about these things rather than letting the company emphasize on its main product which is ice cream. Baskin Robbins is one of the first ice c ream companies to do marketing in a big way. (Malcolm.M & Leslie.C, 2006)

Conclusion

The conclusion of this case study can be seen as Baskin Robbins the world wide recognized ice cream chains famous for it s premium quality and innovation of flavors since the second world war. While being the pioneer company in ice cream Baskin Robbins gained immense success throughout these 60years with in the beginning no competitors. And currently also Baskin Robbins is loved and liked by people round the globe. Baskin Robbins introduced a new concept of 31 flavors offered by one outlet at the same time by also introducing a concept of making the customer taste the flavors free of cost unless they make their choice of what flavor to choose from. Thus in these past 60years Baskin Robbins introduced more than a thousand flavors in ice cream. They offer ice cream in 32 flavors’ milk shakes which are the best in my recommendations also, ice cream sundaes, cheese cakes, frozen cakes. (Dave,2001)

Baskin Robbins has not only focused its efforts in producing the high quality ice cream flavors, but it has also put great deal of effort and work in developing innovative and creative ideas for satisfying customers and providing greater value to them. Baskin Robbins has developed different packaging styles for people or customers who are traveling so that it becomes much easier for them to enjoy Baskin Robbins while they are on the move. However, this is not all, research into Baskin Robbins proves that much success and good fame leads to a few drawbacks or weaknesses also. Customers have been seen complaining about high prices of the ice cream as compared to the local stores in the US and other countries. But many loyal customers do not care about the high prices at all; they are so much in love with the quality and taste of Baskin Robbins that they can happily pay the double price.

Whereas, research has also proved that Baskin Robbins has gained so much popularity that most of its outlets have become congested and short of space. People keep crowding in the outlets of Baskin Robbins to enjoy shakes and ice creams on a regular basis. Therefore, it has now become extremely essential for the Marketing department of Baskin Robbins to consider on developing a new marketing strategy by designing larger branches in new places or in different cities, where there is high demand for Baskin Robbins. The new marketing strategy should be able to not only accommodate and solve the problem of shortage of space in outlets but also to increase the awareness, demand and sales of Baskin Robbins on a much wider scale.

Different alternate options have been developed and provided through marketing efforts in order to reduce these complaints and to provide greater value and satisfaction to the customers. However, regardless of these complaints and weaknesses of Baskin Robbins, people all over the world have never complained about the quality of ice cream of Baskin Robbins. Baskin Robbins might have faced a few drawbacks in other situations but they have never compromised on the quality of their ice cream. Due to this, the company has been able to develop a very strong brand name over the years. (Kotler,2007)

References

Cavusgil, T. (2007). Cultures and Organizations: Software of the Mind. McGraw-Hill.

Hall,D. &Jones, R. (2000). Marketing.Wiley. pp.36-49.

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Kevin,K.& Kotler,P., 2008, Marketing Management. 13th Edn. Prentice Hall.

Kotler, P. (2007).Principles of Marketing. Wiley. pp. 44.

Malcolm.M & Leslie.C (2006) Corporate Marketing and Service brands: Moving beyond the fast moving consumer goods model. Journal of Business and Economics”.pp.1-3,6,7.

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