Baskin Robbins

Marketing Strategy

History
Baskin-Robbins is a global chain of ice cream parlours founded by Burt Baskin and Irv Robbins in 1953, from the merging of their respective ice cream parlours, in Glendale, California. It claims to be the world's largest ice cream franchise, with more than 5,800 locations, 2,800 of which are located in the United States. Baskin-Robbins sells ice cream in over 30 countries
Sources: www.baskinrobbins.com www.baskinrobbins.co.uk/about_us/history.html

Marketing Mix
4P Product, Price, Place and Promotion

Product
Trendsetter in creating and making some of the most exotic and popular international ice cream flavors exclusively available in its parlors. Offering a wide variety of flavors (over 1000 flavors) but at the same time maintaining uniqueness.
Sources: www.baskinrobbins.com www.baskinrobbins.co.uk/about_us/history.html

 Punch line-Whats your flavor?-31 to choose from due to its strategy of offering 31 different flavours in each store, one for each day of the month. International flavors Mississipi Mud, Cotton Candy, Strawberry Yoghurt etc. coupled with four standard Indian flavours throughout the year- alphonso gold, mango and cream, fig and honey, kulfi.
Sources: www.baskinrobbins.com www.baskinrobbins.co.uk/about_us/history.html

 Introduced the concept of "Ask for Free Taste", where we can sample flavours until the right one is found, iconic small pink spoon for sampling. Appearance Vibrant colors to catch the customers attention and maximize the impulse purchase, natural swirl appearance for cones.

Sources:

www.baskinrobbins.com www.baskinrobbins.co.uk/about_us/history.html

 Additional featureshand packed quarts of ice cream,  unique flavor ribbon technique, smooth texture,  newly redesigned shapes to provide an overall better mouth feel and deliver maximum flavor impact.

Seasonal offerings to cater to the needs of the typical Indian customer.

Sources: www.baskinrobbins.com www.baskinrobbins.co.uk/about_us/history.html

Baskin Robbins Quality Flavours available Premium 1000+ flavours, Mostly international + some Indian flavours, (still expanding in terms of offering indian flavours.) Parlours mostly in metros and urbanized areas.

Amul Medium Focus only on Indian flvours (The Taste of India)

Vadilal Mediumlow 120+ flavours Mostly indian flavours

Quality Walls Mediumlow Mostly Indian Flavours.

Haagen Dazs Super premium Mostly international.

Other features

Outlets Present all over the country

Outlets Present all over the country

Outlets Present all over the country

Only at select places even in the metros. Eg: select city walk.

Sources:

Book : Business statistics , case study Ice cream market in India : changing tastes

Our perspective
We feel that some more Indian/regional flavours should be introduced in order to attract more customers. Introduction of nutritional, low fat ice cream flavors specifically for people with diabetes and in general to take care of the growing health concerns among the customers.

Pricing
Baskin-Robbins is perceived as a premium brand. A regular scoop costs Rs 45, while a premium one costs Rs 50. Offers price point range from ice cream single scoop at Rs. 45 to a Premium Large hand pack priced at Rs. 335. Positioned between the mass brands such as Amul, Kwality Walls and Vadilal and the super-premium brands like HagenDazs and Movenpik.
Source: http://www.zomato.com

 Faces some competition from both the categories as well as other dessert brands like Caf Coffee Day and Barista. We are a very affordable brand and with brands like Movenpik, which cost Rs 150-plus a scoop, coming up, it has made life easier for us. Baskin-Robbins is perceived as excellent quality at a lesser price. Subroto Mukherjee (COO, BR India) 31 per cent discount on the 31st of every month is being offered to customers who have a bill above the amount of Rs 310.
Source: Business Standard: Baskin-Robbins: Small is big, 26th July, 2010

Pricing suggestions: BR should price its non-exotic products lower than current to explore the non-upper class income group as well and to compete with the lower pricing brands like Amul, Vadilal which accounts for a huge market share.

Placing
More than 5,800 locations worldwide, spread across 34 countries. Opened its first store in India in 1993, in Mumbai. More than 400 outlets in 95 cities Caters to other channels like star hotels, leading airlines, malls multiplexes and top retail chains across India.

 40% of the ice creams consumed in the western region,30% in the north and 20% in the south. Manufactured in the factory in Pune. Wants to expand and penetrate further into the Indian market tier I and II cities. Targeting a growth rate of 30%. Already have 92 outlets in Mumbai and 45 outlets in Delhi.

Sources:

Book : Business statistics , case study Ice cream market in India : changing tastes

 A few problems faced : Requires specific infrastructure. Require proper power supply, which is erratic in India. Transporting ice cream across India requires massive infrastructure and resources.

Competitors
In rural areas, kulfis and ice creams made by small cottage industry are popular. Amul: 38% market share. Huge emotional connection with Indian consumers. 70,000 stores across the country! Quality Walls: 14% market share. Widespread network of pushcarts present on every street corner. Vadilal: 12% market share. Strong player in western India (Maharashtra, Goa and Gujarat). Mother Dairy: 8% market share. Stronghold of North India. Its strength is the 4,000 pushcarts out on the streets.
Sources: Book : Business statistics , case study Ice cream market in India : changing tastes

Promotion
In-store promotional campaigns Not used advertisements in India. Innovative promotional campaigns. Sponsoring in community events, college fests etc. Word-of-mouth publicity Tagline: Whats your flavour?-31 to choose from.
Sources: www.baskinrobbins.com www.baskinrobbins.co.uk/about_us/history.html

 International global strategy promotes Baskin Robbins as 'Your neighbourhood ice cream store'. Majorly done below the line advertising. Took the first step towards above-the-line advertising -- by exploring radio and tying it in with its on-ground activities in India, in July 2010.
Sources: "Baskin Robbins: Small is Big," 26 July 2010, Amit Ranjan Rai, Business Standard "On its 65th birthday, Baskin Robbins India expands its communication and media plan," 5 August 2010, Surina Sayal, Afaqs

Examples of promotional campaigns:

The paanchvi pass campaign. The spiderman 3 campaign MTV Roadies 6.0 Drona, Love Story 2050 Tie up with Pizza Hut, providing pizza hut patrons an opportunity to sample a range of Baskin Robbins ice creams.
"Baskin Robbins: Small is Big," 26 July 2010, Amit Ranjan Rai, Business Standard

Sources:

Our perspective
We feel that the events/movies sponsored by Baskin Robbins have not been very effective in creating visibility in the brand. We feel that in India, advertisements are very effective and thus the future promotional strategy of Baskin Robbins must include advertisements and commercials etc.

Marketing Plan
Segmenting, Targeting and Positioning

Segmentation Analysis
Age Gender Usefulness Ethnicity Income Lifestyle Attitudes

Measurability

Segmentation
Identifying Bases for market segmentation

Demographic Age: Flavors for children and Sugar free for old aged Income: Upper middle class and high income

Geographic Malls High Foot traffic area in Urban cities

Targeting
Target Market The ice cream industry has a growth rate: 12% p.a.
$ mn 12%

2005

2006

2007

2008

2009

Differentiated (targeted) marketing strategy :Upper middle and high income group (above Rs 1,60,000 per annum) North constituting 12% of the Indian economy.
30%

West

North and West India account for 70% of the total consumption
Sources: Book : Business statistics , case study Ice cream market in India : changing tastes

40% 10%

East
20%

South

Market Competitors
BR faces stiff competition from Amul as it has a market share of 38% It also faces a major competition from the local producers and parlours which constitute 18% of the market share.
Market Share

Amul Kwality Vadilal Mother Diary Cream Bell Arun

Sources:

Book : Business statistics , case study Ice cream market in India : changing tastes

Positioning
Competitive advantages
Caters to all age groups Premium ambience Better hangout parlours Innovation in flavors

Positioning Statement
BR have been changing their captions with time: we sell fun, not just ice creams taste different flavors everyday where the fun is unending and flavor is king not everyone likes all our flavors but each flavor is someone`s favorite
Sources: www.baskinrobbins.com www.baskinrobbins.co.uk/about_us/history.html

Positioning : Value Price Matrix

Quality

Price
Sources: Book : Business statistics , case study Ice cream market in India : changing tastes