High Quality Ice Cream Made With Real Sugar Marketing Essay
We have identified that Baskin Robbins uses certain main segmentation bases for dividing their market, namely demographic and psychographic characteristics. Under demographic segmentation, they focus on the income bracket of consumers. Their products are mainly aimed at the affluent with higher disposable income to spend on frivolous luxuries such as premium ice cream. Also probably the most important type of segmentation bases which we consider is the psychographic segmentation. To be attracted to consuming a premium ice cream, consumers need to be part of a particular lifestyle segment. They would be among those who enjoy the luxury and indulgence associated with the brand.
Using these segmentation means we have conducted a research and identified that, Baskin Robbins has narrowed down its business to cater to specifically two main target markets. Whilst Baskin Robbins portrays the image of targeting all age groups, our research confirmed that their main target market would be higher middle and higher upper income group of people, basically the urban professionals and families with toddlers.
And our research identified that young individuals are more involved in socializing mainly in Colombo urban areas. Hence the current location placed in close proximity to two main Universities and schools in one of Colombo’s main streets (Galle Road) in a high foot traffic area of Colombo itself (Kolpity). Therefor their secondary target group could be categorized as teenagers, young adults and students who live in the urban area of Colombo.
Primary Target Market
Higher middle and higher upper income group
The primary target market of Baskin Robbins is comprised of higher middle and higher upper income professionals and families with toddlers. This market would possess a high disposable income percentage. The lifestyle of such individuals would be high value on family time spent, high focus on child-centered activities, high child centered activities and they would be individuals who associate a product with brand name, quality over price, hence having ice cream at Baskin Robbins would be aligned with their social class. Also the premium loyalty which is associated with Baskin Robbins, these individuals with a high profile status class would be subject to a strong attachment to Baskin Robbins and develop a sense of belonging, which is then in turn passed along to the children. As a result, the families are adjudged profitable high volume customers.
Secondary Target Market
The primary segment is composed of college students and young professionals within the city suburbs of Colombo consisting of both genders of all ethnicities between the ages of 18 to 24 and 25 to 30, who are mobile, with active social lives. Friends, entertainment and college are important to this group. Their lifestyles balance college, work and social/leisure pursuits. They frequently attend movie theaters, casual dining restaurants, sporting events and shopping malls. While other demographics are similar, the college student segment seems best to focus on. Although their average income is usually less than Rs. 20,000 a month, many college students have part-time jobs or receive money from parents. These students are seen as marginally profitable low to high-volume customers with latent to premium loyalty. They are happy and spend much of their money on entertainment. They should feel or develop a strong attachment to Baskin Robbins. With friends and social life being such high priorities in this segment, the potential for word of mouth and peer influence is high, which results in a large and growing customer base.
According to the outcome of the research it is evident that the sales have dropped due to the service reasons of less fresh and smaller donuts and more oily donuts. It is the quality service that keeps a product moving and ongoing. Poor service can result in declining sales constantly no matter how strong the awareness is.
Thus we propose the service to be excellent with proving that gonuts have the fresh donuts in Sri Lanka by using a strategy of showing how a donut is made within the outlet If the service level can rise then the well being of the company can be guaranteed.
As a result of our focus group interviews the idea of having a small birthday celebration with the colleagues stood out and to we have a designed a unique concept of a quick birthday pary package for office staff naming “Quick fix”. The theme behind the scenario is that we surprise the employee as the whole setup will be done in 20 minutes by two of gonuts’ specially trained employees. Gonuts with donut’s mini delivery van is used for the “quick fix “package and special care and training will be given to the employees in order to arrange everything that is required for the quick fixed party within 20 minutes. By preparing this quick fix package it will definitely attract a large number of the office crowd and also to maintain their remaining customer loyal base.
The “Quick Fix” party package will include the following:
Doughnuts – (the flavours will be selected by the customer)
Balloons with gonuts logo
Gonuts Special party beverage (party slush)
This service is effective because it is the duty of gonuts to fulfill the customers every need and quick fix being one of the main services that gonuts is intending to add to their innovative service procedures it will help them to increase their sales without any problems.
Quick fix can have a bit of competition with the outdoor competitors such as Perera and sons who do out door catering for a very long time. Yet however they do catering for lunch, pastries and their completion is what so evr not so competitive as they target a different market group.
The other issue that comes here is who are the majority of the people purchase Donuts for their office treat. A cake is usually 1500 /= and 20 donuts are about 1300/= whixh clearly shows that having donuts at a office part is comparatively cheap and effective as no need to order special people to arrange the place as a team from Gonuts with donuts are send to the place.
The pricing Strategy
As a brand concentrating only the Colombo metropolitan, Gonuts with Donuts has adopted to price skimming. That is, Gonuts with Donuts has estimated its unit price to mainly present the product as an exclusive product and thereby as the business has a substantial competitive advantage due to uniqueness this strategy has become possibility and success. Pricing is very important as we have identified the impact through past experiences (offering the donut for Rs.85) which declined sales by 40% in just a period of two months. We intend to maintain a price closer to 50 which will secure our regular customers. Our markup cost will continue to be 55% - 60% of the cost of the donut.
The proposed treasure box will be priced at Rs.300 including 20 donuts creating a markup percentage of 45% per mini donut. Discounts will be available for regular buyers and special attractive packages are designed to promote our party quick fix service.
Beverages and other by products will be outsourced and the pricing will go in line with the donuts.
Sales and distribution plan
Having one big out let in the metropolitan area of Colombo would be effective as more and more people tend to attract to such places and group behavior is a supporting trend. Thus it will make the outlet the one and only sit and eat donut outlet in the country.
Gonuts will continue to use the two mini vans and six bikes for all the deliveries but in a more effective way as many respondents for the questionnaire complained the prolonged period taken for delivery of donuts.
In addition we recommend to further go ahead with opening little outlets inside Arpico Super Centers in Colombo because on most of the days all the super centres are crowded and we have identified that the majority falls under the Gonuts’ target market..
We also suggest mobile sales strategy; to have Gonuts with Donuts mini carnival van and travel to nearest happening events on a regular basis. The propsed locations and events are school fairs, carnivals and other crowded places like galle face and Vihara Maha Devi park (especially the ‘Sathutu Uyana’ where many kids can be encountered).
Advertising and promotional plan
Since Gonuts is available only in the Colombo city area going with mass media wouldn’t be appropriate. Facebook will continue to be the main advertising source because currently it is the most famous online community. A fully functioning site will be developed that will enable perspective clients to see what products are available and the locations of the outlets and about the business, this site will also allow them to order donuts online. The site will have a virtual tour facility As far as for promotions it is a must for the company to come up with innovative ways of reaching and winning the clients hearts with reliable service and products.
The next significant thing Gonust should focus on is its own beverages and it is the high time for Gonuts to come up with their own beverages. We have ranged the beverages under chillers in both creamy milkshakes and fruity slushers.
The interior of the out- let should be more creative to attract the customers and keep their perception of the place at its best. In order to do so the idea of having pictures on the wall showing the customers how the delicious donut is made can build a new perception in the minds of the customers.
As for the new product development and to attract more customers the creation of cake in the shape of a donut will help the customers flowing in and it will also help Gonuts compete with some of the cake competitors.
The most important idea for New product development and reach the maximum promotion is to come up with the new product name ‘The treasure box” This is in the shape of a treasure box and it will contain chocolate size mini donut holes in each flavor (only the sweet range)a box of 20 mini donut balls with each flavor.
A special promotion is designed to attract kids especially at outlets like odel and cartoon kids by giving them a toy replica of the respective donut they purchase as a free gift. This offer is valid only for the gonut meal which includes a donut and a beverage. The toy will be a cabin of a train as the kid is expected to collect all 13 different cabins (with the design of all sweet flavors) and the engine of the train will be given afterwards to complete the whole train. The objective is to motivate kids to buy all our flavors of donuts and the beverages available as well.
A donut shaped leaflet including all the details of the new office promotion, the Treasure box and the kiddie’s toy collectibles will be distributed along with the newspapers and at each outlet.
These advertising and promotional methods will lead to the success of the company we can predict that it has reached every desire of the customers.
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