Tasti D-Lite: Final Report Presentation Group Members: Alex Andujar Melia Dayeh Pashmeena Hilal Annie Ritter Lindsay Sommer Introduction Began in 1987 when the Carlesimo family designed a low-calorie frozen dessert Opened first store in Manhattan Now more than 75 independently owned stores throughout nation More than 100 guilt-free flavors low in fat, calories, and cholesterol 60 calories in a 4oz serving; $3.75 Large college student and young professional demographic in Boston Boston is ranked no. 11 out of 50 cities in “Centrum’s Healthiest Cities Survey” Test marketability of Tasti D-Lite in Boston Better understand Boston consumer and find out whether or not Tasti D-Lite would be successful Situation Analysis Opportunities: Seasonality of Northeast region does not threaten success of frozen dessert shops Increasing purchases of better-for-you (BFY) ice cream Health-conscious consumer are gaining strength in marketplace Threats: Boston has established frozen dessert shops (i.e., Ben & Jerry’s, JP Licks, Baskin Robbins, Cold Stone Creamery, etc.) Increase of grocery store BFY ice cream (i.e., Skinny Cow, Weight Watchers) will draw health-minded consumers into grocery stores Baskin Robbins co-branding with Dunkin’ Donuts adds marketing and distribution muscle Situation Analysis (cont’d…) Strengths: Tasti D-Lite has 75 independently owned stores throughout NYC, as well as several other cities, which is an indicator of its success Tasti D-Lite balances BFY attributes with "great taste" Stores are designed and operated for quick customer turnaround Weaknesses: Little to no brand awareness in 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 both unwelcoming and inconsistent with store hours Past controversy behind Tasti D-Lite's nutritious claims may have jeopardized brand's credibility Marketing Problems Boston is a competitive market because it offers numerous frozen dessert stores Most other frozen dessert stores have corporate support that provides consistency in taste, as well as general store operations, which Tasti D-Lite lacks Informing public about Tasti D-Lite’s introduction to Boston will be challenging because Tasti D-Lite does not have an advertising budget Negative press concerning Tasti D-Lite’s calorie claims Research Objectives Find out whether or not Tasti D-Lite will succeed in the Boston Market Gain an understanding of the types of marketing (i.e. promotions, website, magazines) our target audience will respond to 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 Methodology Data Collection Method: Quantitative data was gathered in 100 surveys with 21 questions throughout the month of October Data was collected in and around downtown Boston and was completed in approximately 15 minutes Sampling Method & Samples: Our sampling method was a non-probability, convenience sample of 100 surveys, 55 completed by men and 45 by females Respondents ranged between the ages of 18 and 35, 78 were between 18 and 24, and 22 were between 25 and 35. Over half (67) of all respondents had incomes under 20 thousand dollars Key Measurements: Single, multiple and open ended response question The first half of our survey measured: respondents behaviors and actions when consuming frozen desserts. The second half measured: respondents overall attitude of Tasti D-Lite Methodology (cont’d…) Key Measurements (cont’d..): Frequency of frozen dessert consumption-Dessert establishments in Boston respondents familiar with-Factors that are important when eating at frozen dessert establishments-Overall rating of the Tasti D-Lite conceptRespondents likes and dislikes-Purchase intention-Recommendation to peers-Price Data Analysis: SPSS allowed us to test mean scores using frequency statistics, cross analyze dependent & independent variables using a cross-tab analysis and test independent variables with a independent t-test Action Standard: By analyzing our top-line report, we concluded that Tasti D-Lite would derive best statistical results by comparing means and percentages to a high action standard We set our action standard at Top 2 box 60% and 3.50 mean Tasti D-Lite is a small but powerful company, unfortunately Boston is a market currently saturated with frozen dessert establishments. Tasti D-Lite can succeed with a powerful campaign with several IMC components Results Frozen Dessert Consumption: Males consume more frozen desserts than women 38% of men consume frozen desserts 1-2 times/week 33% of females consume frozen desserts 1-2 times/week Overall, people do not consume frozen desserts extremely often; on average 1-2 times per week Ice Cream Store Recognition: However, consumers recognize frozen dessert store names in the Boston area 95% recognize Ben & Jerry’s, 85% Coldstone and Baskin Robbins, 81% JP Licks, and 28% Emack and Bolio’s Respondents Rate the Importance: The most important things consumers look for in a frozen dessert store are cleanliness, customer service, taste, and product quality Cleanliness: 50% rank it very important, (50%males, 52%females) Taste: 71% rank it extremely important, (71%males, 73% females) Product Quality: 58% rank it extremely important, (58%males, 60%females) Results Familiarity of Tasti D-Lite: Survey results indicate that 36% of respondents are familiar with Tasti DLite According to the results, a larger percentage of males (87%) are more familiar with Tasti D-Lite than females (49%) Feelings about Tasti D-Lite: o Survey results indicate the majority of people (39%) responded “I strongly like it” to Tasti D-Lite o 57% of females felt neutral about Tasti D-Lite and 25% of men o 50% of men ages 18-24 strongly liked Tasti D-Lite and only 22% of men ages 25-35 Recommendation to Friends: o 56% of respondents are likely to recommend Tasti D-Lite to their friends based on their understanding of the concept Males (61%) are more likely than females (50%) to recommend Tasit D-Lite to their friends Survey results also show that older respondents (73%) have a higher propensity to recommend Tasti D-lite to their friends Results Overall Evaluation of New Product Concept: o The respondents of the study showed a favorable evaluation toward product concept overall, with the mean score of 4.14 on the 5-point scale and the top 2 box of 79% o The findings passed the action standard of this study, which is a top 2 box of 60% and a mean score of 3.50 o Female respondents indicated a more favorable overall evaluation of the product concept (a mean score of 4.16, and a top 2 box of 86%) o Male respondents had a mean score of 4.13 and a top 2 box of 75% Overall Evaluation of Product Concept 5 4 3 Mean 4.14 4.16 4.13 2 1 Me an Total Fe male Male 4.14 4.16 4.13 Results Likes (Tasti D-Lite) Of the total respondents: 55% liked the health 17% liked the taste 17% liked the flavor 5% named other likes Dislikes (Tasti D-Lite) o Of the total respondents: 20% disliked the product price 15% were skeptical about the product’s taste 40% named other dislikes or no dislikes at all Willing To Pay Respondents showed a strong preference toward the cost of Tasti D-Lite being between $2.70-$3.30. The findings passed the action standard of this study Male respondents indicated more willingness to pay for Tasti D-Lite at the $2.70-$3.30 price in comparison to females Respondents that made under $20k were more willing to pay for Tasti D-Lite when it was priced at $2.70-$3.30, while those who made over $20k were more willing to spend above $3.30 for Tasti D-Lite Response to the Concept Purchase Intent 5 4.5 4 3.5 3 2.5 2 1.5 1 4.12 4.08 4.27 Action Standard Mean Total 4.31 3.89 Female Male 18-24 25-35 If Tasti D-Lite were to open in Boston, 78% of respondents would be likely to try it 56% of respondents would recommend Tasti D-lite to their friends 78% of respondents like the nutritional elements of the Tasti D-lite concept Results Choice of Tasti D-Lite over other Brands • 42 of total respondents agreed that health concerns are a reason why they would choose Tasti D-Lite over other brands • 34 respondents agreed that their flavor options are important when considering where to purchase frozen desserts • Over half of all respondents (55), were either neutral or agreed that variety is an important characteristic to consider Incentives • Survey results indicate that 43% of respondents would be encouraged to try Tasti D-Lite if a coupon was offered • Specifically, 47% male and 39% female • Followed by discounts (22%), then senior citizen or student cards (19%) Incentives that Encourage Trial 50 40 30 Percentage Total 20 Female 10 0 Total Female Male Male Coupons Discount Student Card 43 39 47 22 18 26 19 27 13 Conclusion Conclusion: Majority of respondents eat frozen dessert between 1 – 4 times a week JP Licks, Ben & Jerry’s, Coldstone, and Baskin Robbins have more than 80% awareness Tasti D-Lite has 36% brand awareness amongst respondents Taste was the top preference in selecting frozen dessert After respondents were shown the concept of Tasti D-Lite… 78% purchase intent exceeded the action standard 56% of respondents would recommend the brand to their friends Respondents had difficulty rating the taste of Tasti D-Lite Taste testing may have provided better insights in respondent’s opinion of the taste of Tasti D-Lite Slight male gender skew with positive responses may show that males in Boston are more likely to be customers of Tasty D-Lite Majority of respondents are willing to pay between $2.70 and 3.30 43% of respondents prefer coupons as an incentive to try Tasti DLite Recommendation Launch Tasti D-Lite in the Boston market Marketing and promotions must be clear and visible throughout Boston, due to proliferation of frozen dessert options Use coupons as trial incentives Could be distributed as a direct mail piece received in student mailboxes, unions and public areas. Print advertising in order to reinforce Tasti D-Lite as a top choice for frozen desserts Continue research: On-site customer satisfaction surveys Triangulation technique, such as on/off site taste tests in order to properly gauge market’s perceptions of the Tasti DLite product Price 4 oz. serving at $2.99