Frozen Desserts
Industry
(Ice cream, anyone?)
Market Definition
•
Frozen Dessert industry comprises
eastablishments focused on ice cream,
frozen yogurt, frozen ice, sherbet, frozen
tofu, and other frozen desserts.
•
It is a 12.1 Billion Annual industry, according
to MarketResearch.com, 2009 report
Three Companies
•
Baskin Robbins
•
Ben and Jerry’s
•
Pinkberry
The Five Forces at
Work in the Industry
•
New Entrants: No barriers to new frozen dessert
companies (ex: small, local ice cream vendors)
•
Buyers: No consequence for switching brands
•
Suppliers: Regulations require desserts to meet
certain ingredient standards
•
Substitutes: Widely available
•
Intensity of Rivalry: High. Many competitors,
lawsuits, and potential market opportunities
Pinkberry Quick Facts
•
Founded 2005
•
100+ stores, including Kuwait, UAE, and
Mexico
•
Actively targets the iPod generation
Pinkberry
•
Corporate Strategy: Healthy, premium frozen yogurt
•
Business Strategy: Limited selection (2 basic flavors) +
toppings. Low sugar, low fat alternative to traditional frozen
desserts.
•
Functional Strategy: Personalized attention to the customer
•
Blogs, “Groupie” Section, short stories, catering, order
online and curbside delivery
•
Store design: Philippe Starck furniture, more to do with
the experience of shopping than the purchase itself.
Pinkberry
•
Strategy: Focus
•
Concentrate on niche market that wants
healthier alternate to ice cream
Pinkberry
•
Created new high-end fro-yo niche market: cutting out
traditional rivals (TCBY)
•
High price for highly personalized service and high quality
product (value proposition)
•
Latches on to the upscale marketing trends of health,
greening, and elitism
•
HIGHLY SUCCESSFUL: since opening in 2005, have
opened 100+ stores, including international. Have
garnered investors from well-known organizations like
Starbucks.
Baskin-Robbins
Quick Facts
•
Founded 1947
•
5,800+ stores, worldwide
•
Over 1000 flavors in their catalog
•
All stores are franchised
•
“We sell fun, not just ice cream”
Baskin Robbins
•
Corporate Strategy: Delight customers with irresistible treats
•
Business Strategy: The most dessert choices in the most
places.
•
Functional Strategy: Sell fun, not just ice cream
•
31 flavors for each day of the month, plus pink spoons to
try each flavor for free with
•
Wacky flavors ride cultural waves (Miami Ice, Beatle Nut,
Moon Cheesecake)
•
Social responsibility programs increase feeling of good will
Baskin Robbins
•
Strategy: Cost Leadership
•
Concentrate on delivering lots of product in
lots of places for as little money as possible
(owning their own dairies, etc. to keep costs
down)
Baskin Robbins
•
Established themselves as an international brand in the 1970s,
increasing their market
•
Lower prices for decent and unique ice cream, with high
standardization across all stores
•
Store saturation means that if you want ice cream, you’ll
almost always be able to find one
•
HIGHLY SUCCESSFUL: since opening in 1947, have opened
5800+ stores, including international. Continue to grow
through introduction of new products like cakes and “healthy”
sundaes. Bought and sold many times, currently owned by
Dunkin Donuts (Dunkin Brands)
Ben & Jerry’s
Quick Facts
•
Founded 1978, in Burlington, VT
•
750 franchised Scoop Shops, worldwide
•
Donate 1.1 million to philanthropic causes
•
Rivals: Haagen Daz/Nestle and Dreyer’s
Ben & Jerry’s
•
Corporate Strategy: Develop high quality product, achieving
economic growth and profitability, and incorporate social
responsibility
•
Business Strategy: Superpremium ice cream in novel flavors
•
Functional Strategy: Appear homemade/down home, and as
do-gooders
•
Free Cone Day
•
Handdrawn branding
•
Social responsibility clearly stated on packaging and in
stores
Ben & Jerry’s
•
Strategy: Differentiation
•
They are use high-quality, all natural
ingredients for their products
•
They are very socially-conscious
•
They are whimsical
Ben & Jerry’s
•
High prices for high quality products in a variety of
flavors
•
Use of environmentally safe materials, which looks
good to customers and supposedly keeps costs
down
•
Created high-level of brand loyalty
•
HIGHLY SUCCESSFUL: lots of brand loyalty, many
good quality products, lots of awareness and money
to their philanthropic causes. Also, profitable.
Winners and Losers
•
•
Winners:
•
Growth/Market Share
•
Profitablity
•
Customer loyalty
•
Quality products that people want
Losers:
•
Growth/Market Share
•
Profitablity
•
Customer loyalty
•
Quality products that people want