Tasti D-Lite
Research
Proposal
Group Members;
Alex Andujar
Melia Dayeh
Pashmeena Hilal
Annie Ritter
Lindsay Sommer
Introduction
In 1987 Celeste Carlesimo and her father Louis, a food technologist, perfected
Tasti D-Lite, a low calorie frozen dessert designated to satisfy the “changing dietary
needs and tastes of Americans” (www.tastidlite.com). The Carlesimo family opened
their first Tasti D-Lite store in Manhattan, and since then the frozen dessert company has
flourished. Tasti D-Lite now operates 75 independently owned stores throughout the
nation.
Tasti D-Lite offers more than 100 guilt-free flavors all of which are low in fat,
calories and cholesterol. In fact, Tasti D-Lite has only 60 calories in a 4 oz. serving and
costs a reasonable $3.75 (www.tastidlite.com). Currently there are no outlets in Boston
offering guilt-free frozen desserts. With such a large college and young-professional
demographic, Boston seems to be a lucrative market for those who are looking for a tasty,
on-the-go treat. Boston is ranked 11th out of 50 cities in “Centrum’s Healthiest Cities
Survey,” so it appears to be favorable to introduce Tasti D-Lite to the Boston market.
In our final report we would like to test the marketability of Tasti D-Lite in the
Boston market by using both primary and secondary data analysis. For primary research,
we will administer a survey in order to better understand the Boston consumer and bring
insight into whether or not Tasti D-Lite would survive and become successful in the
Boston market.
Literature Review
External Analysis
1.a. Environmental Analysis
In order for Tasti D-Lite to enter the Boston market, it needs to follow policies,
procedures and guidelines unique to Boston and Manchester County. It is important to
know that Tasti D-Lite is considered a manufacturer of ice cream due to the soft serve
machines inside the building itself.
According to the United States Dairy Export Council, examples of some of these
“rules” that ice cream manufacturers must follow are: the temperature the “ice cream” is
kept at, the amount of milk used and the amount of coliform (bacterial growth) per gram.
Additional guidelines, as quoted by the United States Dairy Export Council, are
“...maintaining steady product temperatures, sufficient circulation of refrigerated air and
proper stock control and rotation using the first-in, first-out inventory management
approach.” Beyond scientific regulations, there are labeling and flavor guidelines that are
specific to where labels may or may not be in placed and how to distinguish and name
flavors correctly.
Boston consumers enjoy trying new things and eating “outside the home.”
According to the Massachusetts Restaurant Association, Bostonians spend more than 40
percent of their “food dollar” eating in restaurants. Boston also participates in the “Ban
Trans Fat” campaign. Tasti D-Lite creates their product free of trans fat which is a
positive aspect toward the campaign. As well, multiple restaurants around Boston are
working with the Boston Public Health Commission as part of a new program called,
“Boston BestBites: Food on the Lighter Side,” to improve their menus for the health
conscious. (http://www.bphc.org/programs/initiative). It is important to realize that eating
out of the house is something that occurs very often in Boson. Tasti D-lite is a good
addition because they follow all the current regulations regarding food and trans fat.
The Tasti D-Lite concept fits perfectly with Boston’s demographics. The median
age in Boston is now 32.4, which is approximately four years younger than the national
median age. Despite a national trend of an aging population, Boston counteracts this
trend with twenty-four percent of the residents under the age of twenty, and thirty-three
percent of the residents between twenty and thirty-four. Beyond just the young adult
generation, (whom our marketing research is being targeted to) the median household
income is sixteen percent higher than other metropolitan areas nationwide
(www.bostonretailmarket.com). This means that the Boston market is lucrative, and the
city’s residents do have more change to spend.
1. b. Industry Analysis
Tasti D-Lite is currently competing in the United States market, which holds the
title as the “world’s largest frozen dairy products producer” (www.usdec.org).
In the
United States, frozen desserts are a $20.5 billion industry, while worldwide consumption
has rose steadily beginning in the 1990s, with the exception of a brief plateau in 2002
(http://galennet.galegroup.com/servlet.bcrc-). According to USDA’s Dairy Facts, last
year the U.S. produced close to 1.6 billion gallons and spent almost $13 billion on frozen
desserts (Doby, 2006). American’s love for frozen delights includes ice cream
production at 60 percent, followed by reduced and nonfat products at 28 percent and
frozen yogurt, sherbet, water ice, and other various frozen products making up the rest of
the market. According to Information Resources Inc. the leading ice cream brands
include; Breyer’s, Dreyer’s/Edy’s, Blue Bell, Haagen-Dazs, and Ben and Jerry’s
(http://galennet.galegroup.com/servlet.bcrc-).
Advanced technology in the areas of ingredients, manufacturing equipment, and
creative packaging have led U.S. processors to develop frozen dairy desserts that meet
nearly every kind of consumer’s nutritional needs and taste preferences (www.usdec.org).
The U.S. frozen dairy products industry is capable of unrestrained growth to meet global
demands; this is attributable to its possession of the largest milk supply in the world, its
large quantities of available land, and its investments in research and development. In
addition, the United States has been able to set and meet important consumer trends in the
frozen dairy products industry. For example, U.S. processors have satisfied the consumer
need for “guilt-free food” by producing high quality low-fat, nonfat, and sugar-free
frozen dairy desserts (www.usdec.org). Statistics have shown that “guilt-free food,” also
known as better-for-you (BFY) varieties, are an important growth segment in the frozen
dessert industry as consumers are willing to pay more for “healthy” dessert items (Doby,
2006). While sales of standard ice cream has dropped in the past two years, sales of
reduced-fat ice cream rose 13.8 percent in sales from January to June 2005, according to
the IDFA. This shows a move toward BFY (Better For You) ice cream and an
appropriate environment for Tasti D-Lite (http://galennet.galegroup.com/servlet.bcrc).
1.c. Competitors’ Analysis
Tasti D-Lite has been given nearly 20 years to find its rank in the competitive
landscape. Although the dessert industry continues to grow just as fast as companies like
Tasti D-Lite, we have limited our direct competitors to frozen dessert businesses that
offer both ice cream and less-fattening dairy options, such as frozen yogurt. The
company’s greatest threats are the national and regional chains that have been in business
long before Tasti D-Lite was established. Tasti D-Lite’s three direct competitors that will
be analyzed are: JP Lics, Ben & Jerry’s and Baskin Robbins.
JP Licks, a creamery founded by Vince Petryx in 1981, has been in business a few
years longer than Tasti D-Lite and has only 5 chain stores inside, and surrounding the city
of Boston; therefore, market share is not comparable to other large frozen dessert chains
such as Ben and Jerry’s and Baskin Robbins (www.jplicks.com). JP Licks is known for
it’s “creative restaurant-ing” which entraps consumers and enriches the ice cream
experience. The store boasts 7 to 10 seasonal flavors in addition to more than 30 flavors
of ice creams and yogurts. The company has won several accolades, including Best in
Boston for several years in a row (www.jplicks.com). Penetrating a market that already
has allegiance to JP licks can be difficult. On the other hand, JP Licks cannot compare
nutritionally with Tasti D-Lite with their narrow choices for the health conscious.
Best known for its crazy colors, unique concoctions and extensive ice cream
menu, Ben and Jerry’s is one of the traditional leaders of ice cream providers in the U.S.
More than 85 million dollars in sales were noted in 2005 (Dairy Fields Journal). Ben and
Jerry’s continues to grow as it expands into Canada, Europe, and Japan (Staruss, 2003).
Based on Dairy Fields Journal, Ben and Jerry’s ranked 6th among the top 10 ice cream
brands in 2006. Additionally, according to Dairy Fields Journal, dollar sales were $193
million dollars and Ben and Jerry’s had a firm hold on 5.3% market share. Ben and
Jerry’s can also be found at local grocery stores throughout the U.S. Although Ben and
Jerry’s offers ice creams with reduced calories and fat, it does not live up to the healthy
standards that Tasti D-Lite prides themselves on. Tasti D-Lite has entered a niche market
( healthy lifestyle) that cannot be compared to Ben and Jerry’s.
Almost inescapable in any U.S, city, Baskin Robbins serves ice cream, frozen
beverages, cakes and snacks at all locations. Not only has Baskin Robbins had a share in
the ice cream market for 60 years, but it has more than 2,700 franchises
(www.baskinrobbins.com). In 2006, Baskin Robbins sales were $1.15 million dollars,
and ranking 35th out of 400 stores in the ice cream and treats franchise industry (
Restaurants and Institutions Journal). Trying to follow the new trend in bohemian ice
cream parlors, Baskin Robbins has been giving stores west of the MIssissippi a make
over and soon will do the same to the east coast. This renovation is part of a new
marketing outlook to help recover from the $1.6 million dollar loss this past year
(Molina, 2006). With more than 25 flavors of hard yogurt, soft serve, ices, snacks and
sorbets that are low in calories, fat and sugar, not only are treats fun to eat at Baskin
Robbins, but the company targets consumers who prefer to snack on the lighter side. so
although Baskin Robbins is made for the kids, or the “kids in us”, it gives adults the
opportunity to make health-conscious decisions.
Ice Cream and Yogurt Shops in Boston
(Source: Yahoo! YellowPages)
Other
Ben & Jerry's
J P Licks
Baskin Robbins
Bringham's Ice Cream
Coldstone
Dairy Queen
Friendly's
TCBY
Haagen Dazs
Edy's
TOTAL
Boston Metro
22
5
4
3
3
2
1
0
0
0
0
40
*Share of Space
**Shops within 17 Miles from Boston Metro
SOS*
55%
13%
10%
8%
8%
5%
3%
0%
0%
0%
0%
100%
Boston Area**
118
7
8
10
19
6
5
21
3
2
1
200
SOS
59%
4%
4%
5%
10%
3%
3%
11%
2%
1%
1%
100%
Boston Metro
Bringham's Ice
Cream
8%
Baskin Robbins
8%
Coldstone Dairy Queen
3%
5%
J P Licks
10%
Other
54%
Ben & Jerry's
12%
Boston Area
Dairy Queen Friendly's
10%
3%
Coldstone
3%
Haagen Dazs
1%
Edy's
1%
TCBY
2%
Bringham's Ice
Cream
9%
Baskin Robbins
5% J P Licks
4%
Ben & Jerry's
4%
Other
58%
1.d. Consumer Analysis
With obesity on the rise in America, health advocacy groups are encouraging
people to examine their lifestyles and change their unhealthy eating habits. Low-fat
products can be seen everywhere – from store shelves to television and magazine
advertisements. Consumers are constantly reminded of the importance of healthy eating
habits. In fact, 58 percent of Bostonians say they “try to eat healthier food these days”
(www.mediaframework.com).
It is no secret that many consumers, including the residents of Boston, have the
desire to adhere to a healthy lifestyle with smart food choices. Forty-seven percent of
Bostonians “work at eating a well-balanced diet.” Tasti D-Lite will target consumers who
are concerned with preserving good health and controlling their weight, but are still not
willing to “say good-bye” to great tasting ice cream. Ice cream and related frozen desserts
are eaten by more than 90 percent of households in the United States
(http://www.idfa.org/facts/icmonth/page2.cfm).
Approximately 590,000 people live in the city of Boston. Nearly 52 percent of
Boston’s population is female, and about 48 percent is male
(http://boston.areaconnect.com/statistics.htm). The majority of Boston’s population is
between the ages of 25 to 34 years old (http://boston.areaconnect.com/statistics.htm).
Tasti D-Lite will target the young, female segment because women place more emphasis
than men on keeping a healthy weight (Hodges, 2003). It appears that Tasti D-Lite will
do well in the Boston market because younger Americans are more diligent than older
Americans about the calories they consume (Hodges, 2003).
2.a. Internal Analysis
What differentiates Tasti D-Lite from soft-serve ice cream and frozen yogurt is its
low-fat properties developed for the base mixes. Because of Tasti D-Lite’s low-fat base
mixes, the machines used to prepare the product must be air-pump rather than gravity
machines to achieve the desired overrun consistency (Doby, 2006). The machines allow
operators to make adjustments to reach a 75 percent air-overrun target, and their design
makes cleaning and maintenance a hassle-free experience (Doby, 2006). The air-pump
machine is recommended to all Tasti D-Lite independently owned stores. An equipment
distributor located on Long Island, NY, supplies licensees with the air-pump machines, as
well as other equipment used to support Tasti D-Lite store operations (Doby, 2006).
Tasti D-Lite Marketing Representative, Gertrude Bakel, says that because Tasti
D-lite is privately owned, the company does not release its sales revenue reports or any
other financial information. Tasti D-Lite currently operates 75 independently owned
stores throughout New York City, and in Upstate New York, as well as New Jersey,
Connnecticut, Florida, Illinois, Maryland, and Texas (www.tastidlite.com). It offers more
than 100 flavors of Tasti D-Lite, as well as various yummy toppings, shakes and
smoothies, cakes, and novelties such as dipped cones, parfaits, cookie sandwiches, and
pre-packed pints and quarts (www.tastidlite.com).
In 2002 Tasti D-Lite received negative media attention that had the potential to
seriously harm the company. According to Tasti D-Lite’s official nutritional information,
one could eat Tasti D-Lite 50 times a day without exceeding his/her suggested calorie
intake. Four years ago a New York Times reporter decided to investigate this claim
firsthand. The reporter discovered that Tasti D-Lite is far fattier than it claims to be – in
fact, none of her Tasti D-Lite samples came close to their advertised calorie counts, and
none of them even qualified as FDA-sanctioned "low calorie ice cream" (Wallace, 2004).
“One serving of vanilla Tasti D-Lite actually weighed in at a whopping 6.7 oz. and
contained 224 calories” (Wallace, 2004). Despite the controversy, Tasti D-Lite insists
that its frozen dessert has only 60 calories in a 4 oz serving, and the company has
continued to rapidly grow and “rake in the big bucks.”
SWOT Analysis
Tasti D-Lite
External Analysis
Market Opportunities
- Seasonality of Northeast region does not threaten
success of ice cream shops.
- Consumers are increasing purchases of BFY (Better
For You) ice cream.
- Health-conscious consumers are gaining strength in
the marketplace and will respond well to Tasti D-Lite's
low fat, low calorie, and all natural ingredients.
Market Threats
- Boston contains established Ice Creamery chains (e.g.
Ben & Jerry's, JP Licks, Baskin Robbins, Cold Stone,
etc.)
- Increase of grocery store BFY packaged ice cream
offerings (e.g. Skinny Cow, Weight Watchers, etc.) will
draw health-minded consumers to grocery stores.
- Los Angeles-based creamery Pinkberry is infiltrating the
east coast New York and may possibly move into
Boston.
- Baskin Robbins’ co-branding with Dunkin Donuts adds
marketing and distribution muscle.
Internal Analysis
Product Strengths
- Tasti D-Lite has 75 independently owned stores
throughout NYC, and in Connecticut, Maryland, Florida,
Texas and Illinois, which is an indicator of success in
the ice creamery trade.
- Tasti D-Lite balances BFY attributes with "great taste".
Product Weaknesses
- Little to no brand awareness in the Boston market.
- Tasti D-Lite franchisees do not have the corporate
support that other Boston shops benefit from.
- Tasti D-Lite locations have earned a reputation as
uncomfortable, unwelcoming, and inconsistent with
store hours.
- Stores are designed and operated for quick customer
turnaround.
- Current controversy behind Tasti D-Lite's nutritious
claims has jeopardized brand's credibility.
Research Objectives
Boston is a competitive environment because it offers many different types of
frozen dessert stores. Because Tasti D-Lite is being introduced into a competitive market,
it can be expected that the company may initially struggle to create its niche in the Boston
market. In addition, many of the frozen dessert stores in Boston have a corporate support
system that provides consistency in taste, look, and general store operations that Tasti DLite lacks.
While there are many different ways to generate free publicity about our product,
informing the public of its introduction into the Boston market will be a challenge
because Tasti D-Lite does not have an advertising budget. Additionally, consumers may
have read negative press concerning The New York Department of Consumer Affairs
investigation into Tasti D-Lite’s misleading calorie and cholesterol claims in 2002.
In order to solve these marketing problems for Tasti D-Lite that we identified
above, we have developed both general and specific research objectives. Our first
general research objective for Tasti D-Lite is to understand whether or not Tasti D-Lite
will succeed in the Boston market. The second general research objective is to gain an
understanding of the types of marketing (i.e. promotions, website, radio, magazines) our
target audience will respond to.
The specific research objectives we have come up with for Tasti D-Lite include:
General Attitudes and Usage Questions about frozen desserts:

Find out whether or not people respond well to a dessert experience with only one
type of frozen dessert

Examine whether or not consumers prefer a “guilt-free” ice cream and a limited
daily flavor menu

Identify the consumers’ motivation for frozen dessert consumption.

Examine whether the consumers’ consumption of frozen desserts is seasonal.

Gauge how much the consumer is willing to pay for a frozen dessert.
Questions about Tasti D-Lite:

Find out what people like/dislike about the Tasti D-Lite brand.

Determine the brand image of Tasti D-Lite.

Identify who is the typical Tasti D-Lite customer.

Investigate what forms of media can reach the Tasti D-Lite consumers most
effectively.
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