TARGET MARKET PROJECT

ICE CREAM INDUSTRY

KRISTEN SMITH

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TABLE OF CONTENTS

MARKETING ENVIRONMENT -------------------------------------------------------------- 3 INDUSTRY POTENTIAL ------------------------------------------------------------- 4 CURRENT TRENDS ------------------------------------------------------------------- 5 COMPETITIVE FACTORS ---------------------------------------------------------- 6 TECHNOLOGICAL FACTORS ----------------------------------------------------- 7 POLITICAL & LEGAL FACTORS -------------------------------------------------- 8 SOCIAL & CULTURAL FACTORS ----------------------------------------------- 9 CONSUMER BEHAVIOR FACTORS --------------------------------------------- 10 COMPETITOR #1 (BASKIN-ROBBINS) --------------------------------------------------- 11 POSITIONING MAPS ----------------------------------------------------------------- 12 PRIMARY TARGET MARKET ANALYISIS ------------------------------------- 14 PRODUCT -------------------------------------------------------------------------------- 15 PRICE-------------------------------------------------------------------------------------- 16 PLACE ------------------------------------------------------------------------------------- 17 PROMOTION ---------------------------------------------------------------------------- 19 WEBSITE ---------------------------------------------------------------------------------- 20 COMPETITOR #2 (COLD STONE) ---------------------------------------------------------- 22 POSITIONING MAPS ------------------------------------------------------------------ 23 PRIMARY TARGET MARKET ANALYISIS -------------------------------------- 25 PRODUCT -------------------------------------------------------------------------------- 26 PRICE --------------------------------------------------------------------------------------- 28 PLACE -------------------------------------------------------------------------------------- 29 PROMOTION ----------------------------------------------------------------------------- 30 WEBSITE------------------------------------------------------------------------------------ 32 TIME OUT-------------------------------------------------------------------------------------------- 33 ETHICAL ISSUE & ACTION PLAN --------------------------------------------------- 34 SWOT ANALYSIS--------------------------------------------------------------------------- 35 COMPETITIVE ADVANTAGES --------------------------------------------------------- 36 INTERNAL MARKETING STRATEGIES --------------------------------------------- 37 THIRD PRODUCT (COWLICK CREAMERY) ---------------------------------------------- 41 POSITIONING MAP------------------------------------------------------------------------ 42 TARKET MARKET ANALYSIS---------------------------------------------------------- 44 PRODUCT ------------------------------------------------------------------------------------ 46 PRICE------------------------------------------------------------------------------------------- 47 PLACE------------------------------------------------------------------------------------------ 48 PROMOTION--------------------------------------------------------------------------------- 49 WEBSITE-------------------------------------------------------------------------------------- 51 WORKS CITED-------------------------------------------------------------------------------------- 52 ARTICLES------------------------------------------------------------------------------------- 53 WEBSITES------------------------------------------------------------------------------------ 54 PROFESSIONAL INTERVIEWS -------------------------------------------------------- 56 CUSTOMER INTERVIEWS--------------------------------------------------------------- 59

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THE MARKETING ENVIRONMENT

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INDUSTRY POTENTIAL

The ice cream industry has a large opportunity for potential, especially as new consumer preferences arise and large-scale shops fail to meet customer needs. Despite a demand for healthier dessert options and the growing popularity of frozen yogurt and gelato, ice cream is still America’s favorite dessert item (Website #14). The ice cream shop industry is a $12 billion growing industry with an arising demand for creative innovation (Article #8). The ice cream industry has won the hearts of Americans and has become the leading staple dessert item and social event. People are always looking for an opportunity to celebrate, so if a shop creates an atmosphere that cultivates celebration, the customers will come. A majority of the industry is run by a younger demographic—whether it is a birthday, baseball game, or a good grade, ice cream has become a leading form of celebration. Despite a consistent demand for dessert shops, the industry has struggled to see growth in recent years. Health trends, the recent emergence of frozen yogurt, and a drop in the economy have stolen ice cream sales in recent years, causing concern for this industry. In 2009, Baskin-Robbins failed to meet their yearly franchise expansion goal of 0.2% growth and other major contributors saw consistent declines in expansion (Article #8). Baskin-Robbins sales dropped to $496 million from $570 million, Dairy Queen, Cold Stone, and Ben & Jerry’s saw as much as 9.8% decreases in sales between 2009-2014 (Article #8, Website #13). Cold Stone announced a 4.9% yearly sales decrease in 2009 and has struggled to recover since (Article #8). Many of these publically held franchises are struggling to remain where they once were, but the industry still appears promising. While statistics of popular franchises show that American ice cream consumption is likely down 45%, popularity in non-dairy and sorbet treats are soaring in popularity with a 46% growth in 2013-2014 (Website #12). Artisanal brands have captured the imagination of consumers and are taking over the industry. Small ice cream shops and privately held manufacturers have pinpointed what consumers want: ice cream made with quality ingredients (Website #13, Customer #3). Brands like Talenti, a privately owned gelato brand based out of Minneapolis, are soaring, with pint sales of $30 million in 2013 overwhelming industry growth (Website #13). Studies show that 40% of American consumers will eat ice cream this week, just behind coffee consumers at 47% (Website #13). The demand for ice cream continues to remain stable, but customer needs are changing and franchises need to catch up. The frozen yogurt market drove in $279-$485 million dollars between 2011 and 2013 (74% growth), while the ice cream industry drove in $5.7-$5.9 billion (3.9% growth) (Website #17). The need for a sweet treat remains, but the frozen dessert industry is changing quickly and large-scale ice cream franchises may need to catch up before sales begin to melt. Implications: Starting an ice cream shop in the frozen desserts industry could prove incredible payoff right now, if done correctly. Growth in frozen yogurt and gelato sales in recent years proves that the industry does not lack a need for frozen treats. Preferences are simply changing. Research has shown that there is a major gap in this industry. The popularity of small ice cream shops that put more care and consideration into ingredients are soaring, but they lack the capacity to grow at a rate of larger-scale franchises. The economy hit large franchises like Baskin and Cold Stone hard, and they are struggling to recover sales growth after the recession.

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CURRENT TRENDS

In recent years, the United States has become more conscious of health risks and the content of their foods. Elements such as organic products and the percentage of fat and sugar content have caused consumers to become more aware of what they are eating (Customer #4, 13). In a 2011 study, 60.6% of Americans would prefer to eat organic foods to non-organic food options (Website #9). Data indicates that over 78 million U.S. adults and 12.5 million children are obese, and people are starting to listen to these statistics (Website #11). With increasing media and cultural understanding of the implications of unhealthy eating, dessert experiences are now approached by most adults with an element of guilt. According to 67% of US consumers, health attributes are important for their deciding to choose certain foods (Website #12). With this being said, most adults are shifting their thinking when deciding where and how they should indulge in a sweet treat. In the 1990s, the frozen yogurt trend invaded the frozen dessert industry with the self-serve, mix-it-yourself frozen yogurt model (Website #17). In the past twenty years, more than 2,582 frozen yogurt shops have emerged in the United States with sales averaging at a 21% increase each year (Website #13). However, researchers predict this trend will not last long. Even at its height, frozen yogurt’s popularity is nothing close to ice cream’s sales (Website #13). Regardless of the future of frozen yogurt, consumers want something different. Whether it is the desire for lower fat and sugar options, a more personalized and self-served experience, or a short-lived trendy experiment, consumers are raving about this new trend. IBIS World analysts believe the frozen yogurt industry has capitalized on having a fun guest experience at a low price (Article #8). In addition to a cultural shift towards healthier eating and frozen yogurt, there is a demand for a more entertaining dessert experience. In recent years, a shift towards trendier ice cream shops has created a popular presence in the younger generation through social media and celebrity experiences. Places like After’s Ice Cream, Honeymee, and Nitrogen7 are local shops that have grown in popularity due to the unique experience and conversation pieces (Websites 6, 7, 8). Nitrogen ice cream, ice cream donuts, and honey-covered ice cream have proven to be wildly popular, suggesting that the traditional ice cream franchise may not be cutting it. “Sterile” or “impersonal” ice cream experiences are no longer enough for this new generation (Customer #3). Of all the college-aged customers interviewed, the vast majority would choose a trendier location over the typical franchise (CI #1, 2, 3, 4, 29, 31). The Millennial generation appears to care more about the experience than past generations, indicating a need for change in the industry. Lastly, this industry is looking for creative flavors. While vanilla still remains America’s favorite flavor, the emergence of new flavors and palettes is creating a desire for more thought than simply a store-bought carton (Website #8). Visiting an ice cream shop is an experience, and customers are beginning to crave a more unique and flavorful one (Customer #2, 3, 31). Studies show that the most common purchase driver for ice cream in the US is flavor, at a nearly 70% majority (Website #12, Customer #1, 2, 3, 5, 6, 9, 15, 19, 20, 22). Flavors ranging from salted caramel, vegetable, and savory cheese and alcohol are opening the door to a more sophisticated palate (Website #12). This category is the biggest opportunity for innovation and smaller stores are starting to realize the possibility for industry growth.

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Implications: The implications of the current trends show that entering a new market will require creativity. Customers are looking for two conflicting elements: healthier options and more flavorful experiences. While Americans are always looking for an opportunity to indulge in a sweet treat, the trends of this industry prove that shops that provide positive eating experiences with healthy and creative environments will stand out in their communities. Emerging interest in the trendier shops, frozen yogurt, and healthier options clearly indicate a shift in this industry. As someone considers entering into this market, factors of ingredients, atmosphere, culture, and experience should be leading considerations. Customers now are expecting a personalized experience. Whether this means adding their own toppings, choosing their own flavors through manual, customer operated machines; it is the little things that matter to this industry. Being sensitive to the health trends of this industry is crucial. Elements that will make people brand loyal will be different for each demographic, but a common understanding of the health sensitivity and push for creative thinking will set companies apart tremendously.

COMPETITIVE FACTORS The ice cream industry is incredibly competitive. With the average American consuming ice cream 1.6 times per week, ice cream has grown into a more than $12 billion industry, just behind the coffee industry (Website #9). It is highly developed and large franchises consume a majority of the industry. My focus is on the two direct competitors, Baskin-Robbins and Cold Stone Creamery. Both shops offer sit-down and take out ice cream cone options. Ice cream franchises such as Ben & Jerry’s and Dairy Queen are major national indirect competitors. All these franchises represent over 56% of the ice cream industry (Article #8). In regards to secondary competitors, purchasing ice cream from grocery stores takes over 75% of ice cream purchasing sales and is the leading industry competitor (Website #9). Purchasing a carton of ice cream from the store is significantly cheaper than from a sit-down shop and is much more convenient for families. It does not, however, offer the experience that shops offer. In addition to grocery stores, emerging trendy ice cream shops have taken away the college-aged and young adult demographic from mainstream ice cream franchises (Professional #4). Local shops like After’s Ice Cream, Honeymee, and Nitrogen7 specialize in a more experience-focused ice cream experience: these nitrogen-made, donut ice cream sandwiches, and honey-covered ice cream shops have become very popular to the young adult crowd (Website #6, #7, #8 Customer #2, 3, 6, 7, 8, 9, 10, 31). Because of frozen yogurt’s appearance as being healthier than traditional ice cream, it has become the local ice cream shop’s greatest competitor (Website #14, Article #8). Frozen yogurt franchises and chains have taken away a large amount of business from ice cream shops because they offer a healthier approach and a more personalized experience (Article #8). Additional competitors in this industry would include any dessert option in the area: cupcakes, donuts, fast food dessert menus, boba and shaved ice shops.

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Implications: Starting a company in this industry is highly competitive but there is definitely a need in the market for creative, healthy ice cream shops. The leading franchises in this industry have demanded a large amount of consumer sales, but should not keep people from considering starting new businesses. If a new player in the industry is considering starting a business, it is important to know the needs of the consumers. If they can pinpoint a niche in the market for a particular demographic, it will not be that difficult to succeed. Americans are dedicated to sweet treats and are always looking for an opportunity to celebrate. Whether it is a birthday, a new job, a date, or simply a reason to celebrate the end of a not-so-good day, ice cream shops continue to be a celebrated necessity in society. This offers hope for my third product, especially during this unique time in history. Addressing arising needs will be important to insuring success. Understanding the ways my competition fails to meet needs is essential to creating a successful third product.

TECHNOLOGICAL FACTORS

Technology has not played a major role in the ice cream shops industry in past years. In regards to running a shop, it is expected that a shop would use technology like surveillance cameras, cash registers, rewards cards, phone coupons, and the possibility of an online social media presence (Customer #4). Customers do not seem to expect much in regards to technology when they are comparing different ice cream locations. Studies do show that customers are beginning to expect to use technology more often when ordering food (Website #16). Both my direct competitors have their own phone applications, but both have poor reviews and little traffic (Website #2, #3). Some technologies that are currently being implemented in this industry include; mobile cake ordering, iPad kiosks, electronic menus, social media incentives, data analytics, computerized inventory, and rewards systems (Website #16). While customers do not currently demand these technological advances, companies can definitely benefit from the use of these factors to give them a competitive edge. Research shows that convenience is key for this generation—especially Millennials (Article #1). If technology can be used to make the ice cream experience faster and more specialized, it is likely that shops will see growth when they utilize new functions. In the past years, digital amenities like online ordering and mobile payment have gone from being futuristic extravagance to modern necessities for restaurant consumers, especially in Millennials (Website #16, Article #2). When considering starting a new company, it is important to exceed the demand for technological advances. While the upfront technological investments appear costly for an emerging company, it can make a major difference in saving time and drawing in customers. Choosing to invest in iPad cash registers, new applications, and online coupons are small investments when you look at the potential for profit. Southern California based liquid nitrogen ice cream is using technology to create new gourmet flavors and ice cream textures. These new shops are emerging all over the west coast and customers are lining up to try this unique ice cream (Website #17). While technological factors are not necessary for a positive, delicious, ice cream experience, it can leverage a company to address more customers and get the industry talking.

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Implications: While small, mom-and-pop ice cream shops have continued to thrive despite a lack of technological advances, emerging players in this industry should utilize new technologies. Because we live in a technological age, stores that do not take technological factors into play will likely suffer. It is simple to interact over social media with customers, thanking them for choosing their store. Investing in technological advances such as iPad registers, electronic menus, and rewards cards are simple ways a company can appear technologically involved with the current generation. Studies are showing that Millennials are expecting to see technology in the purchasing experience. Any opportunity to make the buying experience faster, more user-friendly, and unique will set the player a part in the industry. While technology is not a requirement for a successful ice cream shop, small factors can contribute to a more positive buying experience. For my third product, I will take every chance I can to improve process through data analysis and invest in technologies that will help customers remember the buying experience.

POLITICAL & LEGAL FACTORS

Food contamination, allergies, and food-borne illnesses are a major legal factor in the ice cream industry (Professional #16). Training employees to properly follow food laws and regulations are crucial to avoid any customer illnesses and possibility for being sued. Before ice cream hits the freezer, it must meet codified standards established by law in order to be considered ice cream (Website #9). The possibility for customers suing because of health allergies and requests will only increase over time. Properly training employees to handle the foods is vital to avoid possible suing. According to Alyssa Medd, a three-year industry professional, the legal implications of employee hours and not overworking state laws were common themes throughout her career (Professional #4). Managing employees who might face immigration troubles, situations of employees misbehaving to customers, and unique situations between employees and owners are important to keep in mind. Like any retail and food industry, owners run the risk of being sued for injuries or problems with the store. America is referred to as “The Land of Lawsuits,” with nearly 15 million lawsuits filed in 2011 (Website #18). Passing all handicap laws and structural codes can avoid any trouble down the road in regards to your location. Being aware of how you can avoid lawsuits are important when preparing to go into an industry. Abiding by calorie listing laws through the FDA are essential as well. Increasing trends towards more health conscious eating are only making this industry more at risk for lawsuits. Insuring you have correctly labeled and measured ice cream scoops in order to provide a customer with the advertised nutritional information can avoid lawsuit. According to the FDA website, calorie and other nutritional labeling will be required for food establishments with more than 20 locations (Website #19). Being sure that your establishment abides by these rules is critical, so it is important to be aware of local and national laws. In addition to calorie and nutritional listings, passing food law inspections becomes public information. On Yelp reviews, customers can view the latest grade an establishment has received by the government in their inspection (Website #1). In order to provide a positive image for your company, passing these laws and tests is important to keeping a positive image for your location.

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Implications: Opening a new restaurant or food service company offers a great amount of legal risk. In the ice cream industry, this implies an awareness of food and service laws. Before starting my company, I would create a binder of all the current laws and regulations in regards to food service, calorie listings, employees, facilities, and contamination. Insuring that my employees are well trained starts from the top, so it will be important to me that my facility is clean, well managed, and passes all national codes. I would hope that my company would not face any lawsuits, but in the case that this did happen, I would be sure to have a trusted lawyer ready to guide me through this process.

SOCIAL & CULTURAL FACTORS Some of the current social and cultural factors that relate to this industry are health concerns, convenience, price, a desire to stand out and be unique, and a need for acceptance. Many professionals I have interviewed mentioned that their time in the industry has only brought more of an emphasis towards healthier eating (Professional #2, 3, 4, 6). The rising popularity of frozen yogurt has indicated a desire to pursue healthier, low-fat options. One customer, when asked what he considers before visiting an ice cream shop, admits that he recalls when he last worked out when deciding what shop to go to (Customer #4). Coming out of a recession, our generation places a higher emphasis on money than past generations (Article #3). Despite this trend, a majority of interviewed customers admit that they do not put a considerable emphasis on the price of ice cream, “Most ice cream is about the same price and I can expect to spend around the same price on all ice cream so it doesn’t affect me much” (Customer #1). However, other customers admitted a desire to go to certain shops because of a rewards card or coupon (Customer #2, 4, 29). Convenience is a major factor in our generation. The location, speed, and availability of products are essential to this generation. Baskin-Robbins locations are putting considerable effort into the convenience of their locations, by recently opening kiosk locations in airports, malls, and universities to cater to a more fast-paced generation (Article #1). Our generation is also unique in that it demands a need for acceptance. The need for social acceptance and quality time with others is essential in caring for family and friends. Coffee dates, hanging out, and doing social activities are a common part of society, and social media is only increasing this desire for social acceptance (Article #4). Fitting in is essential for youth and they care deeply about the latest trends. These elements all impact the ice cream industry. Whether it is a growing desire to eat healthier foods, connect with people, fit in through outlets like social media, and a growing sense of busyness in society, all are shaping how and why people choose ice cream. Luckily for this industry, the need for ice cream will likely never diminish. According to a Cold Stone ice cream scooper, no matter what society and culture says about the health factors of ice cream, “People will always make an excuse for a cheat day” (Professional #1). Whether it is celebrating a good day, wishing you had a better day, or sampling wishing to spend time with someone you love, ice cream is always a fitting excuse to celebrate life.

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Implications: When considering my entrance into the industry, it is important to be aware of the social and cultural factors that are mentioned above. Society is often changing and being aware of the needs—whether psychological, health-related, or a need for creativity—there are ways to address these needs. Friendly workers, putting care into the ingredients, creating systems for rewards and coupons, as well as taking the time to interact through social media with customers will allow me to interact better with my customers.

CONSUMER BEHAVIOR FACTORS The following factors exist in people making decisions to choose particular competitors in the industry.

1. Specific flavor of ice cream (CI#1, 2, 3, 5, 6, 9, 15, 19, 20, 22) 2. Proximity to other locations (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12) 3. Welcoming environment (CI #2, 3, 5, 18 PI #3, 13) 4. Dietary restrictions (CI #2, 4, 5, 6, 7, 17 PI #2, 4, 5) 5. Affordable price (CI #1, 13 PI #5) 6. Cultural trendiness (CI #1, 2, 3, 4 PI #4, 9) 7. Nostalgia (CI #1, 3, 4, 5, 16) 8. Product customization (CI #1, 13 PI #4) 9. Friendly employee interaction (CI #1, 3 PI #2, 5, 7) 10. Unique Experience (CI #2, 3, 17 PI #2, 9) 11. Personality of shop (CI #2, 3) 12. Large serving size (CI # PI #4) 13. Organic options (CI #4, 6, 7, 9 PI #3, 8) 14. Health conscious (CI #4, 6, 7, 9, 17 PI #2, 3, 4) 15. Kid friendly (CI # 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 20, 22 PI #3, 5, 8, 10) 16. Provides celebration (CI #1, 19) 17. Creamy texture (CI #1, 2, 5, 6, 7, 8, 9, 15, 21, 26 PI #5) 18. Creativity in flavors (CI #1, 2, 3, 5, 11, 12, 22 PI #10) 19. Seasonal weather (CI #4 PI #5, 11) 20. Color of ice cream (CI #10, 12, 22 PI #10) 21. Social outing (CI #2, 3, 13, 16, 19, 26 PI #2) 22. Promotions (CI #29, 11-14)

Implications: Customers care about the little things, but the big things are what get them in the store. Kid friendly and creative options were two wildly popular reasons customers choose different ice cream options. Know why customers choose certain shops helps understand the niche in a marketplace. In the case of the ice cream industry, knowing what draws certain customers into the shop helps understand how we can improve and achieve a more specific third product. By knowing that customers are looking for kid friendly and accessible options, I can cater to these needs more specifically. Certain elements of the decision process that I expected would be leading behavior factors were not as popular as I was expecting them to be—atmosphere, personality of shop, and environment. It is important to keep in mind what really gets customers into your shop.

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COMPETITTOR #1: BASKIN-ROBBINS

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POSITIONING MAP #1

Baskin-Robbins offers highly processed ice cream that is frozen and distributed to thousands of locations around the country (Article #7). Customers do not associate their product with having fresh ingredients (Customer #1, 2, 3, 4, 5, 17, 18, 19, 21, 27, 28). The highly processed, frozen, and preserved product is clear in their shipped tubs and the way in which they are displayed for customers (Customer #15). The Baskin-Robbins experience involves choosing your flavor and sitting down. There is a lack of creativity and experience has affected customers in a changing market of choosing flavor and toppings in the frozen yogurt trend (Article #10, Customer #28).

CreativeExperience

SimpleExperience

FreshIngredientsHighlyprocessed

A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee

A

B

C

D

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POSITIONING MAP #2

Baskin-Robbins appeals to children and has a variety of cotton candy and colorful flavors. Kids are looking for a reason to celebrate and research shows that parents are looking for kid-friendly options for dessert locations (CI # 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 20, 22 PI #3, 5, 8, 10). Baskin is great for both adults and children because they offer classic flavors but also wild cotton candy flavors. Customers are looking for seating and an inviting atmosphere. Baskin-Robbins does not have an abundance of seating for busy times—their locations are both small and are not designed for large groups of customers.

AlwaysEnoughSeating

AllAboutKids

HardToFindaPlacetoSit

AllAboutAdults

A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee

A B

C

D

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PRIMARY TARGET MARKET ANALYSIS 1. Primary Benefits: I ranked primary benefits first because Baskin-Robbins has offered many benefits that set them a part from other shops. What makes Baskin-Robbins so special is the benefits they offer for their customers.

1. Options (31 flavors): customers are able to choose the flavor of ice cream they want. Sherbet flavors and non-dairy options are available as well. 2. Consistency: there are 6,000 Baskin-Robbins locations around the world. Customers know the Baskin name because it has a consistent presence around the world (Article #7). 3. Samples: customers are able to try the ice cream in front of them until they find the perfect flavor. 4. Nostalgia: customers feel like they are kids again because of the bright colors, variety of options, and child-friendly decorations. 5. Inexpensive: Taking a large family out to ice cream would not break the bank.

2. Primary Geographic: People are not willing to drive very far for their ice cream and research has shown that customers looking for an ice cream will consider what is closest first (Article #7). Customer interviews proved that location was the major deciding factor in choosing this location.

1. Walking distance to homes: Families ride bikes to location to enjoy family time (C.I. #11-15, 16) 2. Close to sporting activities: Parents take children after soccer game at nearby field (C.I. #16) 3. Proximity to competition: Having other ice cream shops in the area takes away from the business. 4. Visible from a busy road: Locations on busier areas create more customer traffic.

3. Primary Psychographic: This is ranked third because the values of this company can be channeled in a variety of different ways. People can celebrate at a number of different shops, not just ice cream. 1. Family is very important 2. Good morals 3. Quality time 4. Indulging 4. Primary Demographic: I ranked demographic last because Baskin-Robbins is appealing to a fairly large demographic: young families and older adults. Baskin-Robbins caters to children ages 3-11 and adults ages 50-90 from a variety of ethnicities. These children come with their parents who are lower to middle class and are interested in an inexpensive treat for their children. The first picture on the website is of a children’s birthday cake and photos of middle-aged adults from a variety of ethnicities (Website #3). Baskin has highlighted the importance of diversity in their in-store decorations online advertising (Professional #6). 1. Families with children ages 3-11 (C.I. #11-15) 2. A variety of ethnicities (Website #3) 3. Lower-middle class 4. Price conscious customers (C.I. #11-15)

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PRODUCT & CUSTOMER EXPERIENCE Product Objective: Baskin-Robbin’s objective is providing an affordable, delicious ice cream option to customers of all ages. Providing a variety of flavors for all the customers as well as a variety of different milkshake and cake options creates a place for a low-cost treat for families and people of all ages. Specific objectives in developing this product for Baskin-Robbins include: 1. A variety of flavors (Customer #11-15) 2. Affordability (Customer #11-15) 3. Kid-friendly (Professional #3) Product Strategies: Baskin-Robbins separates itself from the competition by providing an affordable and simplistic ice cream experience at a variety of locations. Their product consists of frozen tubs of ice cream that can be ordered in a variety of ways—single scoop cones, bowls, milkshakes, or splits (Professional #10). The Baskin product is an experience and a delicious treat. Customers are looking for a place to enjoy another’s company, a destination to bike or walk to, and a reason to celebrate. The bright decorations and branding communicate of nostalgia and child-like joy (Customer #27). The emotional connection of a colorful ice cream shop is a major part of their technique. Customers know they will find and ice cream flavor that will suit their cravings, whether young or old (Customer #11). Baskin products are frozen and shipped around the country, which allows them to sell their product for cheaper. Baskin-Robbins operates more that 7,100 retail stores worldwide, with 2,500 stores in 43 states (Article #8). They are famous for their 31 flavors slogan and the belief that customers should be able to sample their own flavors. Their stores sells ice cream, sundaes, parfaits, pre-packed tubs, cakes and beverages to customers (Article #8). Baskin-Robbins is always creating new flavors and since 1945 has introduced over 1,000 flavors to their stores. The strategy of allowing customers to see their options displayed by flavors in display allows the customer to develop a real sense of pride in selecting their ice cream flavor. People like choosing their products (CI #1, 13 PI #4). Baskin-Robbins stands by their passion of providing a consistent ice cream shop around the country. Their thousands of locations communicate a steadfast commitment to providing a place to celebrate. Their product is simple and easy—tubs of ice cream are delivered pre-packaged and them sold to customers in scoops, sundaes, or milkshakes. They offer a variety of gluten-free and dairy-free options for their customers, appealing to the increasing demand for more health-conscious and dietary-sensitive needs (Article #8). Unlike Cold Stone, customers are able to purchase a large amount of ice cream for a fairly affordable cost. Their product appeals to a younger crowd, but also fulfills the needs of parents as well (Customer #13, 14). They display their flavors so you know what you are choosing from—a menu is hardly necessary (Customer #28). Unlike other stores, Baskin-Robbins aims to appeal to a younger crowd with their decorations and music choices (Professional #10).

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Product Strengths: • Most affordable ice cream shop (Customer #13). • Variety of flavors (Customer #11, 12) • Cakes, milkshakes, and splits expand menu and give more options (Article #8) • Kid-friendly decorations and flavors (Customer #12) • Locations are convenient and near populated areas (Customer #14, 15) • Offers specific dietary restrictive needs (Professional #10)

Product Weaknesses:

• Ice cream flavor and texture is not as rich a delectable as other competitors (Customer #15).

• Lacks freshness and did not add to the ice cream’s taste (Customer #14). • Lack of seating, updated decorations, and a more cleanly feel (Customer #1). • Cones are not as fresh and delectable as competitors #1. • Cakes are poorly made and overpriced (Customer #5) • Struggled to pass inspection for cleanliness (Website #1). • Customer service and friendliness is low (Website #4, 5, 17, 18) • Only one employee working at a time (Customer #5) • Cakes are poorly made and “unappetizing.” (Customer #5)

PRICING ANALYSIS & DISCUSSION

Pricing Objectives: Baskin-Robbins meets the “low end of meeting competition” pricing strategy by serving a variety of affordable product while still obtaining a positive experience. Pricing Strategy: Baskin-Robbins has a strategy of providing an ice cream experience with a sit-down feel for a fraction of its high-end ice cream shop competitors. Because of Baskin-Robbin’s consistent name and highly developed manufacturing techniques, they are able to charge lower than normal industry prices for their ice cream while still allowing an impressive margin. Like the rest of the industry, low price industry production allows the company to charge cheaper prices for their ice cream (Article #5). Unlike Cold Stone, Ben & Jerry’s, and Honeymee, Baskin utilizes the cheap production costs of making ice cream to appeal to their customers with a low cost. Their lower-than-industry average prices makes customers more open to the option of choosing this location over other competitors. If Baskin-Robbins were to

Baskin-Robbins Cold Stone Industry Average

Single Scoop $2.79 $5.00 $3.22

Double Scoop $3.99 $5.25 $4.35

Take Home Quart $5.99 $8.00 $6.33

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increase its prices by 20%, it would mean that a scoop of ice cream would be around $3.99 a scoop. Customers did not indicate an overwhelming preference at the cost of their ice cream, but the product that Baskin-Robbins offers is likely not equivalent to an above industry average price (CI #1, 13 PI #5). It is likely that driving up the price would drive customers away to less expensive competitors like fast-food ice cream options or to a more quality product at a similar price. Pricing Strengths:

• A wide range of flavors with a simple ice cream concept offered at a cheaper price than most of the competitors in the ice cream shop industry (CI #1, 13 PI #5).

Pricing Weaknesses:

• Lower pricing may communicate a lower product value and could cause customers to go to a higher-end competitor for a small percentage increase in cost (CI #1, 2, 3, 4 PI #4, 9).

PLACE ANALYSIS & DISCUSSION

Place Objectives: Baskin-Robbins locations are typically found in strip malls, near other food options, and in busier areas of cities. Their locations are typically found in highly populated suburbs, malls, and airports. The objective of this location is to be convenient for their target market.

Place Strategy: Baskin-Robbins is a convenient sit down or take-home ice cream location that provides a place for people to enjoy a social gathering with friends and family (CI #2, 3, 13, 16, 19, 26 PI #2). People who visit Baskin-Robbins are hoping to socialize and enjoy the company of others. It is important for their location to be near their target market. For them, this means being located near a busy street, in a highly populated suburb, and near sporting events and schools. Customers indicated that location was a major factor in deciding where they would indulge in a tasty frozen treat (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12). Customers do not likely go out of their way to visit a Baskin-Robbins. Instead they go to them because they are near a

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baseball field, within biking distance of their house, or close to a school (CI #5, 11, 12, 13, 14, 15, 18, 21). Baskin exclusively sells their product in their store, which results in more of a desire for their product. It is likely that if they were to offer an option in grocery stores or other locations that it would lose its value. A majority of the Baskin experience takes place in the process of sitting down with friends and family to enjoy time with them. Customers came in groups, flocking to tables in hopes of discussing various topics of their day’s events, the latest school gossip, or simply just enjoying someone’s presence. Baskin does not currently offer a drive-through or delivery option. This is largely to do with its emphasis on experience. Creating an emphasis on speed would take away from a primary customer decision-maker – time and experience (CI #2, 3, 13, 16, 19, 26 PI #2). Additionally, there is an element of keeping the ice cream cold and the product that could take away from their image. Additionally, the presence of different competitors has a major impact on the location of this particular store. Surrounding food stores and the fact that they are the only ice cream shop in the strip mall brings customers into their stores. They have a variety of close competitors within 3 miles of them, including other Baskin locations, Honeymee, Cold Stone and Yogurtland Baskin-Robbins is strategically placed near a busy road, middle schools, baseball fields, and in a densely populated suburb. They are appealing to their target market by creating a convenient location. They are open late at night and closed early in the morning to appeal to the convenience of people hoping to celebrate late into the night (Professional #10, Website #3).

Place Strengths: • Walking distance to homes: Families ride bikes to location to enjoy family time (C.I.

#11-15, 16) • Close to sporting activities: Parents take children after soccer game at nearby field (C.I.

#16) • Visible from a busy road: Locations on busier areas create more customer traffic. • Open late at night

Place Weaknesses:

• Proximity to competition: Having other ice cream shops in the area takes away from the business (Professional #10)

• Strip mall is not very busy and is run down (Professional #6)

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PROMOTION ANALYSIS & DISCUSSION Promotion Objectives: Baskin-Robbin’s current promotional objective is to evoke behavior and stimulate demand. They are aiming to lure in customers through promotional events and discounts, advertisements, and new flavors. Baskin-Robbins has a nationwide presence, so their promotional objective is to get customers who know their name into their stores to purchase products. Promotion Strategies: Baskin-Robbins aims to evoke behavior and stimulate demand through the use of coupons and promotional rewards. Baskin-Robbins launched a campaign this year called the “Celebrate 31” promotion, where $1.31 ice cream is offered each month with 31 days (Website #3). Customers come to Baskin-Robbins because of their “Dollar Scoop Tuesday” promotional events (Customer #5). They offer online coupons and promotions through their website, including special email offers and cake discounts. You can sign up online to be a member of their Birthday Club, where you can get a free ice cream on your birthday (Website #3). Baskin-Robbins knows that customers use ice cream as a form of celebration and social events; some customers only visit the shops a few times a year (Customer #12, 14, 28). In order to stimulate long-term customers, Baskin participates in advertisements that get the nation talking in order to stimulate sales and demand. They use their Twitter and Facebook pages as a platform to announce specific promotions and giveaways (Website #3). Baskin relies on word of mouth to make these promotional events a success, but does not do so to create long-term customers. Instead, customers are reminded of the company’s presence through these events and return if they have a positive experience (Professional #10). In regards to their national promotional presence, Baskin-Robbins has created a variety of successful commercials that get customers talking. In 2011, Baskin released an ice cream cake commercial with the catchy lyrics “Ice cream and cake do the ice cream and cake (Website #21). This in addition to a variety of other Mothers Day and Fathers Day commercials have encouraged customers to purchase cakes to celebrate different occasions. Baskin-Robbins also partners with Party City to create a brand continuation in regards to their birthday cakes (Website #3). The primary intent of Baskin-Robbin’s message is that they are affordable and they are always present. The consistent promotions and events are a great reminder to customers that they offer an affordable product and a great opportunity to celebrate any life event. Signs outside of their doors, on Beach Blvd., and advertisements on the windows for their “Celebrate 31 promotion” give customers the idea that Baskin is looking for a way for them to save money while still celebrating. Customers revealed that they are looking for that, too—affordable and delicious is hard to say no to (CI #1, 13 PI #5). Unlike competitors like Cold Stone, Yogurtland, Ben & Jerry’s and Honeymee, Baskin-Robbins is always looking to remind their customers that they are present through the use of promotional discounts. While this does drive conversation regarding their product, it does lower the brand image and make the product appear lower quality to customers (Customer #4, 28).

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Promotion Strengths: • Frequent promotional options bring customers in (Customer #28) • Customers know they kind find ice cream here for less than more expensive competitors

(Customer #13) • National recognition and promotional discussion brings customers into their stores

(Customer #12-16, 28) • Commercials that draw attention to ice cream cakes (Website #21

Promotion Weaknesses:

• Signage could be improved for the La Mirada store to improve visibility from busy road (Professional #6).

• Brand image and quality of product might be lowered because of the emphasis on promotion and saving money (Customer #28,

• Too many promotional advertisements and decorations can be distracting and cluttered. One interviewed customer mentioned they are embarrassed to go to shop because of outdated and cluttered promotional advertising (Customer #4, 16, 17, 18)

WEBSITE ANALYSIS & DISCUSSION

Website Objectives: Bakin-Robbin’s website objective is to inform customers about what they offer customers, promote their different products, and inform customers on where they can get their products. The goal of their website is to convince customers to purchase their products and promote the products that customers would not necessarily consider purchasing. Their website is all about promoting who they are and how customers can get on board—whether that is through promotions, online ordering, or opening up a new franchise (Professional #6). Baskin-Robbin’s corporate website is found at: https://www.baskinrobbins.com/content/baskinrobbins/en.html The company also has an application that is downloadable to mobile devices. Reviews can be found on Yelp: http://www.yelp.com/biz/baskin-robbins-la-mirada-2 Website Strategies: The Baskin-Robbins website brings value to its customers because it aims to make their product more appealing to customers. Whether it is through pictures of different cakes, explanations of different flavors, a customizable cake ordering system, or looking up where the nearest location is, their website exists to make their product more accessible and appealing. The first thing that customers notice when visiting their website is their unique logo and headings (Ice cream, cakes, the scoop, online ordering, and find a shop). The website highlights a photo reel of four different shots of their products, whether they are cakes, promotions, ice cream, or a flavor of the month. These pictures help customers remember the delectable dessert options being offered and inform them of new promotional opportunities. The website is also convenient because it has an option for finding shops, learning more about the company, exploring the option of franchising, and even ordering customizable cakes. The customizable cake option is interactive and creative, allowing customers to choose exactly what they want and then allowing a delivery to their preferred shop. The Baskin-Robbins website also has an account option where you can sign up for promotions and interactive discounts. While their website fulfills a variety of needs due to its corporate nature, it does appear impersonal and bland (Professional #6). While it seeks to interact

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with customers and fulfill informational needs, it is clear they are hoping to earn your business, not meet your needs through clear information pathways and background regarding their store. As far as La Mirada’s specific location, very few steps are being made to interact with local customers online. While there is a Facebook page created for this specific location, it is not operated by the owners. Customers use Facebook as a place to track where they have been through social media tagging. Additionally, Baskin-Robbins La Mirada does not have an online presence outside of Yelp. By choosing to interact with customers in the area through social media, they could create more of a traffic flow into their location. Website Strengths:

• Website has interactive personalization options for making cakes • Represents their brand and displays their product well • Offers promotional discounts and opportunities for free ice cream • Answers questions regarding corporate franchising while also appealing to customers

Website Weaknesses:

• Promotional heavy and very clear they are hoping to earn your business rather that answer questions you might have if you were a customer looking to answer basic questions (i.e. where is the nearest shop, how is the product made, different flavor options).

• Navigating the site can be difficult because there is such an abundance of information being communicated.

• Impersonal and does not give customers a place to give feedback • Customers with complaints go to Yelp and Baskin does nothing to address these concerns

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COMPETITOR #2: COLD STONE CREAMERY

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POSITIONING MAP #1

Cold Stone offers an element of creativity and customization, both of which customers enjoy (CI #1, 13, 28, 29, 30). While customers are looking to indulge in a sweet treat, they are also aware that the product is highly processed and the mixtures are distributed throughout the country (Customer #1, 3, 3, 4, 13, 14, 15, 28 Professional #11, 12). The product is mixed in the stores, but the formula is shipped throughout the country and lacks freshness (Article #8).

CreativeExperience

SimpleExperience

FreshIngredientsHighlyprocessed

A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee

A

B

C

D

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POSITIONING MAP #2

Cold Stone appeals to a more adult environment with their abundance of rich and creamy desserts. Kids often are looking for cotton candy and colorful options, something Cold Stone is lacking in (Customer #12, 13, 21 Professional #11, 12). Customers also complained about a lack of seating during busy times. A majority of customers attend ice cream shops in order to fulfill a social need. Not having enough seating is a major deterrent for customers and this appears to be the case for this particular shop (Customer #20).

AlwaysEnoughSeating

AllAboutKids

HardToFindaPlacetoSit

AllAboutAdults

A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee

A B

C

D

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PRIMARY TARGET MARKET ANALYSIS 1. Primary Geographic: I ranked primary geographic first for Cold Stone La Mirada because it seems to be the leading reason why customers choose this shop. They are located in a strip mall with proximity to the La Mirada Dollar Theater, Panera, La Mirada theatrical center, Biola University, and a densely populated suburban area. When professionals at Cold Stone were asked what the number one reason people came to their store they believed the movie theater and proximity to other food places brings people there for social events. 1. Proximity in strip mall to other food places (Panera, Starbucks, Thai Cuisine) 2. Proximity to theaters: La Mirada Dollar Theater and the La Mirada theater for the performing arts (Professional #7, 8) 3. Proximity to Biola University (Customer #1-5) 2. Primary Benefits: I ranked primary benefits second because the unique experience is what sets Cold Stone apart from its competitors. Next to location, the benefits that Cold Stone offers its customers are what brings them into their store. Because Cold Stone addresses a wide demographic and psychographic, their product appeals to a large crowd and having a variety of specific benefits is important for their company. What brings customers into Cold Stone is the desire for a luxury ice cream—a benefit not many of their customers can address. 1. Creamy, rich, luxury ice cream (Professional #5) 2. Interactive experience 3. Choosing a variety of flavors and toppings 4. Creative “love it” “like it” options for sizing 5. Hand crafted waffle cones 6. Displayed ice cream flavors 7. Fruit options 3. Primary Psychographic: The psychographic section is ranked third because there are a variety of different types of people who enjoy the product Cold Stone offers. When asked, Cold Stone employees said a variety of their customers were families, teenagers, and adults. The psychographic of the La Mirada branch is closely connected to its location and the geographic elements that bring customers into their store. The values of these customers are commonly related to a broader value for spending quality time with family and friends. Celebration is another major element that brings customers into Cold Stone. I ranked psychographic third because there are many ways customers could choose to celebrate beyond Cold Stone. Many different values bring customers into Cold Stone locations that could be fulfilled in a variety of other options. 1. Luxury ice cream 2. Spending quality time with family and friends 3. Celebrating 4. Morals 5. Trying creative flavors 6. Indulgence 7. Spending extra money for a more quality product

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4. Primary Demographic: Demographic is listed last because Cold Stone seeks to reach a larger group of people. Anyone who likes delicious ice cream is the primary demographic of this product. People from all races, ages, and genders enjoy ice cream. This does not mean, however, that specific demographics do not tend to be more likely to visit Cold Stone shops. Cold Stone appeals to a more mature audience than Baskin-Robbins due to a more mature branding technique and a richer texture and flavor options. Male and female 16-35 year olds that are white are most likely to attend this particular location.

PRODUCT & CUSTOMER EXPERIENCE Product Objectives: Cold Stone’s product objective is to create a premium frozen dessert option with customizable toppings that appeals to customers looking to enjoy a social outing with friends and family.

• Creamy and delicious frozen treat (Customer #1, 3, 5, 17, 18, 19, 20, 28) • Customizable (Customer #28) • Unique experience (Customer #18, 19) • Create a higher-end experience than competition (Customer #4)

Product Strategies: Cold Stone prides itself in being the “Ultimate ice cream experience” (Website #2). They separate themselves from the competition by providing a premium product at a premium price. The product was developed in 1988 and they sell ice cream, prepackaged cartons, cakes, pies, shakes, smoothies, frozen yogurt and sorbet (Article #8). The Cold Stone product is directly connected to the experience of choosing and developing what the customers wants. While they offer a variety of different products, a majority of customers are looking for a single scoop customizable treat (Professional #2). Customers begin by walking in and identifying what they want their standard ice cream flavor to be. Customers can choose a pre-selected product from a menu or customize their dessert to fit their exact customization needs. A unique strategy that Cold Stone uses is that they allow the customer to choose exactly what they want and they get to watch the process of their creation come to life in front of them through the handcrafted process of a granite slab. Everything that is made, from cones to ice cream, is fresh and handcrafted (Professional #5). Cold Stone is the creamiest ice cream in the industry and they deliver a premium product. Cold Stone customers are looking for delectable culinary experience. Customers of Cold Stone are committed to the treat being made in front of them and are willing to spend premium money and calories to experience what their unique dessert has to offer. Employees begin by asking customers what flavor they would like, then they mix the various toppings on a granite slab and place it in either a “like it” “love it” or “gotta have it” bowl. Employees are trained to be friendly and engaging—whenever a customer tips the employees, they are asked to sing a song for the customers (Article #5, Professional #2). When customers walk into the store, they are immediately surrounded by rich colors and textures. The rich red paint and chocolate posters and menus highlight the product itself, displayed for customers to see. Their compelling advantage to the customer is just this—they exist to serve the customer’s sugary needs at a premium level. The ice cream is creamy and fresh, displayed in stainless-steel tubs rather than pre-shipped tubs of already made ice cream. Professionals hand make the waffle cones each day. Ice cream cakes are hand crafted with rich decorations and displayed in refrigerator cases in the front of the store. The emotional connection

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for customers is completely directed in the food that they are eating—the creamiest, richest, most delectable ice cream in the market that is made just for you. Unlike competitor #1, Cold Stone has created a product image and experience that communicates premium value and indulgence. Cold Stone appeals to a more adult audience with its customizable and delectable creamery options. Everything from their cones to their ice cream cakes are handcrafted with the customer in mind. Product Strengths:

• High brand image is communicated to customers through their creamy ice cream and premium product (Customer #1, 3, 5, 18, 19, 20)

• A variety of topping options and flavors (Customer #1, 5) • Fresh ingredients displayed in stainless steel cases (Professional #6) • Waffle cones made daily (Professional #2) • Employees are friendlier than competitors and sing for customers (Professional #1

Customer #19, 20, 21, 28) • Nostalgia for many customers because they grew up going to shops around the country

(Customer #3) • Trendier than competitor #1 (Customer #2, 3, 4, 27, 17, 18, 28)

Product Weaknesses:

• Seating is lacking (Customer #24) • Unhealthy and rich (Customer #5, 6, 10, 28) • Very few kid options and not as kid friendly (Customer #13, 14, 16 Professional #8) • So creamy and rich it makes people’s stomachs hurt (Customer #2, 5) • High price for a small cup of ice cream (Professional #5) • Few sorbet options and doesn’t cater to dietary restrictions (Customer #2)

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PRICING ANALYSIS & DISCUSSION

Pricing Objectives: Cold Stone’s objective is prestige—they price high in order to communicate that their product is the best in the industry. If they marketed their ice cream as being one of quality and the best in the industry then failed to communicate that with their pricing, it would likely create an inconsistent message for the customers. Cold Stone has taken the unique objective of communicating that their ice cream is made with quality and is worth the extra money spent. A family going to Cold Stone would likely be spending $20 more than they would if they went to the grocery store and bought a carton of ice cream. Creating a premium product at a premium price is what sets them apart in the industry. Pricing Strategy: Cold Stone wants to make it clear to their customers that they take their ice cream seriously. Charging more money for their product can create the illustration that they put the extra money into their product to get a better product for their customers. Cold Stone takes a unique strategy of presenting three different sizing options: “Like it” “Love it” and “Gotta have it.” This unique naming strategy communicates an encouragement to invest the extra money to get a little more. The $0.25 price difference between the “like it” and “love it” is another encouragement for customers to put in a little more money to get a lot more ice cream. Cold Stone has used this unique marketing strategy to convince customers that they are getting more for their money. The main goal for Cold Stone is to sell more ice cream. Convincing customers that they are getting a gourmet product and convincing them to spend a little more for a lot more product shows that they are interested in creating a premium product for their customer. Behind Ben & Jerry’s ice cream, Cold Stone sells the most expensive product in the industry (Website #20). Interviewed customers were aware of the high expense of this product as well. Many said they only purchase Cold Stone ice cream 3-4 times a year, but when they do it is a major treat and expense (Customer #1, 3, 4, 5, 14). One customer even said that they go to a certain shop with certain friends if he knows that they are wealthier because he doesn’t want to make his friends spend more money than they want. Cold Stone has clearly communicated that their ice cream is premium and customers have caught on.

Baskin-Robbins Cold Stone Industry Average

Single Scoop $2.79 $5.00 $3.22

Double Scoop $3.99 $5.25 $4.35

Take Home Quart $5.99 $8.00 $6.33

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Pricing Strengths: • Incredible margins because of their premium pricing (Article #8). • “Like it” “Love it” “Gotta have it” sizing technique • They have marketed themselves as being a leader in the industry because they charge

more for their ice cream than most and customers respond with a high respect and appreciation for this delectable product (Customer #4, 5, 18, 19, 20, 23, 28).

Pricing Weaknesses:

• High end of the pricing scale—1.8% higher than the industry average (Professional #6) • Incredibly rich and unhealthy (Customer #2, 5, 20).

PLACE ANALYSIS & DISCUSSION

Place Objective: Cold Stone La Mirada’s place objective is to provide a convenient location for their customers with proximity to highly populated suburbs, other eateries, theaters and Biola University. Cold Stone locations around the country are typically in malls, shopping centers, and near other eateries. Cold Stone was trying to accomplish a location near their target market—customers looking to celebrate on the weekend or weeknights after a movie, on a date night, or simply close to a populated area.

Place Strategies: Cold Stone makes their product available to customers by advertising their sign from Rosecrans Avenue. Customers can see their sign from this busy road and from La Mirada Dollar Theater, so it allows customers to understand their options before or after a movie. Cold Stone is within close proximity to Biola University, La Mirada Dollar Theater, La Mirada’s Center For Performing Arts, Panera Bread, La Mirada Park, and four densely populated suburban communities. They strategically have chosen to keep their stores open later because they know their customers are looking for a late night reason to celebrate (Website #2). Most of their target market is working during the day, so they have chosen their hours to be 12pm-10pm Sunday-Thursday and 12pm-10:30pm Friday and Saturday (Website #2). Customers getting out of

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movies late, looking for a late night adventure, or have just finished a play at the Performing Arts Center are looking for a treat late at night (Professional #8). Cold Stone does not have any direct competitors in their shopping center, a strategic move to get customers from the surrounding theaters and eateries to only choose them for a dessert choice. Surrounding high schools and university students choose Cold Stone as a great place for social outings in the evenings and afternoons (Customer #28). If Cold Stone were to move their location two miles away from their current location it would likely cause them to lose business because of the various surrounding establishments that currently bring in customers. Cold Stone would do well in a shopping mall, but would need to be near surrounding activities such as movie theaters and shopping centers to bring in the customers they currently see. While the current location of Cold Stone La Mirada is doing well, choosing a larger location with more seating would likely drive in more business for their company (Professional #8). Changing the way they deliver their product by creating a more convenient means (Drive through or stand) would likely take away from their image of being a sit-down ice cream experience (Article #4). While their location is centrally located to a variety of establishments that draw customers in, choosing to place that makes their location stand out could prove more beneficial for Cold Stone. Unlike Baskin-Robbins, you can see Cold Stone from a busy road, they are yards away from the busiest theater in La Mirada, and are in close proximity to Biola University. Because Cold Stone appeals to an older audience, this is a strategic choice for them.

Place Strengths: • Open late at night (Customer #1, 2, 3, 4, 5, 17, 18, 20, 21, 28). • Close to La Mirada Theaters (Customers #22, 23) • Close to Biola University (Customer #1, 2, 3, 4, 5, 28, 29) • Easily accessible for surrounding suburbs (Customers #22, 23)

Place Weaknesses:

• Small sign and store does not stand out (Professional #6) • Not enough seating for customers (Customers #22, 23) • Strip mall location does not communicate the prestige and expense of Cold Stone’s

product (Customer #28) • Parking can be difficult when crowded (Professional #3)

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PROMOTION ANALYSIS & DISCUSSION Promotion Objective: Cold Stone’s promotional objective is to emphasize the benefits of their product in the marketplace in order to draw customers into their stores. Their goal is not to bring customers in for the first time. Instead, they are aiming to remind customers about why they like their product. Promotion Strategies: Cold Stone’s promotional strategies range from national attention to local promotion. Their objective of reminding customers of their benefits is evident in their TV commercials and website (Website #2). Like Baskin-Robbins, Cold Stone has an online promotional subscription that gives customers the opportunity to get free ice cream. Their online promotional program, or My Cold Stone Club™, allows customers the opportunity to buy one creation and get a free creation coupon delivered to your house (Website #20). Gift cards, 20% discount for Biola students, and Birthday coupons encourage customers evokes behavior and stimulates demand (Professional #1). The main goal of the promotional goals of Cold Stone is to emphasize the benefits of their products in the marketplace. They do this through their in-store decorations, online advertisements for Holiday cakes, and the way in which they display the products they are serving to their customers (Website #2, Professional #2). The different labels for sizing—“like it” “love it” and “gotta have it” for the individual servings and the “mine” “ours and “everybody” option for the pre-packaged sizing emphasize the benefits of the product, encouraging customers to develop a respect and need for the product (Website #2). Other promotional options involve creating your own ice cream online, ordering your ice cream from a smartphone app, an online social stream page, and a page on their website dedicated to their history (Website #2). Instagram offers free promotion by displaying the delectable different treats customers, emphasizing the way in which each store individually handcrafts their ice cream (. Cold Stone’s promotional strategies are effective because customers have developed an appreciation for the value of their products rather than feeling an incentive or promotional coupon getting them into their stores. Customers have developed a respect for the Cold Stone name because they have a respect for themselves (Customer #1, 2, 3, 4, 5, 17, 18, 19, 20, 24). Additionally, word of mouth is an effective tool for their company. Many customers interviewed from Biola came to love Cold Stone near Biola after hearing from others about the value of the product. Unlike its competitors, Cold Stone does not bribe their customers into their shops. In fact, they have found this to be incredibly detrimental to the financial success of their franchises, even putting different locations out of business due to a loss in profits (Article #3). Additionally, Cold Stone is critical about the ways in which they reward their customers. They promote an appreciation for the product they are rewarded by the product itself, not necessarily a discount. Promotion Strengths:

• High brand respect from customers (Customer #1, 2, 3, 4, 5, 17, 18, 19, 20, 24). • An understanding of the product’s value (Customer #1, 2, 3, 4, 5, 17) • Promotion emphasizes the benefit of the product rather • Customers want their product because it’s good not because Cold Stone wants to sell

their product

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Promotion Weaknesses: • A lack of promotional effort to communicate what the product is to those who have never

heard of what they offer and the experience it brings • Customers perceive the product as premium and avoid the product because it appears too

expensive (Customer #13).

WEBSITE ANALYSIS & DISCUSSION Website Objective: Cold Stone’s objective with their website is to inform customers of the value that their product has to customers, provide convenient ways for customers to order food, and provide promotional deals and coupons. Cold Stone’s website is found at: https://www.coldstonecreamery.com. The company also has an application that is downloadable to mobile devices. Reviews can be found on Yelp: http://www.yelp.com/biz/cold-stone-creamery-la-mirada-2 Website Strategies: Cold Stone’s website opens up to a large photo of a delicious ice cream treat. It continues to a reel of various delectable Cold Stone creations. The main goal for their website is to offer convenience for their customers by offering easier ways to order cakes, food, and gift cards. Cold Stone’s website communicates a deep pride for the way that the make their food—through the focal point of their logo, slogan “Because the world deserves better ice cream,” and an emphasis on information about their ice cream. Cold Stone is looking to inform their customers about their product by communicating what it is they are offering to their customers. Pages are devoted to the health information of each product offered, the history of the corporation, and the various steps they are taking to offer more options for people with different health restrictions. This website provides value to their customers by creating convenient store look up functions, an application that allows customers to order food from their phones, and social media displays with their follower accounts. Instagram offers free promotion by displaying the delectable different treats customers, emphasizing the way in which each store individually handcrafts their ice cream. Website Strengths:

• Everything on the website is about the customers and the value of their product • Unlike their other competitors, they do not beg their customers to visit their stores with

promotional coupons. • Franchising information is hidden

Website Weaknesses:

• App is poorly designed and customers are unlikely to download simply to purchase their product

• Graphics can appear outdated at times • Yelp complaints are not channeled to address complaints

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TIME OUT

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ETHICAL ISSUES & ACTION PLAN A. The Situation: A mom and her three kids walk in to my ice cream shop. It is late in the afternoon and they are wearing dirty clothes and appear to be coming from school. The kids look excited and the mom looks especially tired. I welcome the family in and ask how their day is going. The kids are timid but are noticeably excited about being in the shop—Their eyes as wide as saucers and it is fun to see them get so excited. As the kids decide which flavor they are going to get I start talking with the mom. When she first walked in I noticed she looked tired, but now she looks sick. Her eyes are bloodshot and her arms have red marks. It is clear after talking with the mom that she struggles more with a lack of sleep—Her words are slurred and she is struggling to answer basic questions. I let the kids all choose their ice cream flavors and then I ring up their prices. Combined their total is $15.75. The mom fumbles around through her purse looking for her money and starts counting out change, stacking up quarters and dimes until she barely reaches $3 in change. “I’m so sorry, kids. Mama got paid today but I can’t find the money.” The kids all look frantic and embarrassed. The shop is empty but it is clear that the kids are embarrassed for me—this is something that has happened before. The mom has a drug issue and is using her money to fuel her drug addiction and not pay for her kid’s ice cream. Unfortunately this becomes a frequent problem—after dealing with the problem one time by paying for her ice cream with my own money, she continues to come into the store with her kids. Now I must decide what I will do. I don’t know if these kids are safe. B. The Tension: The personal tension for me is that I have been a nanny for many years and I have an awareness of what it takes to take care of children. If people are not able to take care of themselves, it is unlikely that they can take care of children. Allowing this mom to continue her drug addiction is difficult for me. I am worried what other customers will think if this becomes a habit. I do not want to overstep into another person’s life, but there is a tension as a Christian to help these kids. There is a tension as this woman’s peer to defend her image towards her kids. There is a financial obligation to defend my shop and cause it to not lose profit. There is a legal tension if she starts stealing from my shop by expecting frequent free ice cream. C. Ethical Dilemmas: a. If I do nothing I risk the possibility of these kids not being safe. b. If I continue to give her free ice cream I lose profit and it could risk the image of my shop. c. If I ask her to stop coming to my shop I could be perceived as not having good customer service. D. Biblical Principles: Luke 3:10-11 “What should we do then?” the crowd asked. John answered, “Anyone who has two shirts should share with the one who has none, and anyone who has food should do the same.” à Jesus talks often in His time on the earth about helping the poor and the needy. This command would cause me to struggle to not do something for this woman and her family. Whether that means buying her ice cream with my own money, seeing if she is capable of taking care of these children, or simply asking how I can be praying for her. Caring for the poor and needy is an essential part of the Christian walk.

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Galatians 5:20 “Envy, drunkenness, orgies, and things like theses. I warn you, as I warned you before, that those who do such things will not inherit the kingdom of God.” à I do not know if this woman is a Christian or loves the Lord, but God commands His children to not walk in drunkenness. As a follower of God my heart would break as I witness another child of God walking in destruction for her sake and her family’s sake. E. Action Plan: Because this has become a regular occurrence, I would confront the lady and ask that she does not continue coming back if she cannot pay for her ice cream. I would put her in touch with food shelters and my church’s homeless ministry. If she keeps coming back I would contact the police. While I feel comfortable becoming her friend and paying for her ice cream once or twice, there is a fear that I will be encouraging the sin in which she is walking in. By connecting her with resources she would no longer feel a need to get free food from my shop and I would be addressing my concerns for her health and her children’s help. I would check in on her to insure she is doing better after connecting her with my church’s ministry. F. Rationale: While I feel comfortable covering her ice cream one time, there is a fear that she might take advantage of my shop. By connecting her with resources and confronting this problem personally, I am addressing all of the concerns. If she continues to come back to my shop and fails to seek help from my resources, I will contact the police to protect this woman, her children, and my shop’s image.

SWOT ANALYSIS Strengths:

• I have spent hundreds of hours researching the different demands and needs of the industry

• Consistent need for ice cream • In doing this research I have identified a narrow target market and need through customer

and professional interviews • Younger perspective of the wants and needs of the industry • An “outsider” coming into this industry could create fresh ideas that would expand the

industry Weaknesses:

• No experience in this particular industry • Many other dessert alternatives • Brand image is non-existent • Highly competitive and well developed industry with a majority of sales going to large

corporations (Competitor #1, 2) • Creating a highly specific target market could be too risky and turn customers away if it

does not apply to them

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Opportunities:

• The changing needs of the market reveal new opportunities • A growing demand for healthier products and more creative techniques • I have management experience and administrative training that could lend itself to this

process • I will be given the opportunity to stand on a large platform to preach the gospel to my

employees and customers • Opportunity for personal growth and learning

Threats:

• My competitors could take away my customer base if I am not strategic in the way that I address customer needs

• Growing hipster and trendier shops could become a growing threat • Health concerns could take away from my customers • Legal implications if mistakes are made by employees or myself

COMPETITIVE ADVANTAGES 1. Problem: Environment does not encourage customers to stay for long periods of time (Customer #23, 24, 25) Solution: Providing an abundance of seating will encourage customers to stay a long time and feel welcome to socialize. Customers going to an ice cream shop are looking to fulfill a social need, so seating and environment is incredibly important (Article #6). In order for customers to feel confident about their decision to go to a shop rather than choose store-bought ice cream there must be an abundance of seating and a clearly communicated place for people to engage in social gatherings. 2. Problem: Products not geared towards children (Customer #10, 11, 12, 13, 21) Solution: Offering more colorful, vibrant flavors with kids in mind. Smaller sizes, unique touches including whipped cream, sprinkles, and toppings. Kids like an experience that is engaging and customizable. Making facilities geared to the specifications of children—display windows, menus, and decorations. Vibrant colored flavors with kids and parents in mind. Exploring the possibility of creating an entertainment option for children while their parents are socializing (rock wall, jungle gym, crafts) would fulfill a popular demand that came up in interviews (Customers #10, 14). 3. Problem: Outdated/ uncleanly shop facilities (Customer #4, 18, 19, 30) Solution: Updated display cases, flooring, lighting, and hiring a designer to create an updated facility. Only choosing locations in updated shopping and strip mall locations will lend to a cleaner image for the company. Interviewed customers mentioned they chose to avoid certain shops because their shops were outdated and uncleanly (Customer #30).

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4. Problem: Unhealthy and inorganic ingredients (Customer #5, 10, 11, 12) Solution: An increased social demand for healthier ingredients has challenged people’s desire to enjoy a dessert option (Article #8, 9, 10). More awareness of how food is processed creates an opportunity for my third product to stand out in the industry. I plan to use organic ingredients, make my product daily, and provide healthy options for my customers. Using local ingredients and creating relationships with local farmers creates an ethical opportunity to not cut corners and provide honest, whole products for customers. While my dessert may not compromise the sugary treat people are looking for, organic and local ingredients will be utilized. 5. Problem: Employees lack friendliness and customer service (Website #1, Customers #3, 30, 31) Solution: Training employees to engage with customers in order to make the ice cream experience a positive one makes all the difference. Interacting with the process of making the ice cream adds the extra touch that makes spending 200% more than store-bought options worth the investment (Article #3). Solutions could include specific songs sung by employees for each different item, a performance element to the process, or a specialized cup or cone for kids. Exploring the possibility of hiring trained chefs for each location could add an element of passion to the service experience. If customers see that the employees are passionate about the process, they will be more likely to invest in the ice cream process (Customer #30). Choosing to never have an employee work alone (like they do at both Cold Stone and Baskin-Robbins), customers will sense a real passion and friendliness if they are working with a pair of friendly employees.

INTERNAL MARKETING STRATEGIES FOR 3RD PRODUCT

Quality & Consistency:

Potential Concern #1: Inconsistent taste Potential Solution #1: Because the ice cream will be made fresh each day in the shop, it is possible that the product could be inconsistent if not made properly one day. Customers could grow concerned that the product they are receiving is different each time they order a product from us. By creating a systematic process and purchasing machinery that creates a consistent ice cream texture and flavor, our brand will remain intact and customers will know what to expect from us. Hiring a chef that makes the ice cream the same way each day and training employees to follow protocol for the different orders and topping combinations, a system will be in place to create a consistent product with a delicious taste. Potential Concern #2: Messy store Potential Solution #2: Hiring an abundance of employees and assigning job rotations will create a system that can solve this problem. Customers never enjoy sitting in spaces with melted ice cream on the tables, napkins scattered on the floor, or a messy floor. By training employees to clean these messes as part of their job, customers will likely never see the store in a messy state. Weekly deep-clean crews will insure that the shop is meeting code by creating a cleanly working environment each week. Working more staff than originally seen as necessary will be vital to the success of this business and the cleanliness of the shop. Assigning a “floor worker” during the busy hours to bus tables and interact with employees will insure that each customer is being tended to if they are in need of napkins or need a table wiped down

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Employee Satisfaction and Training:

Potential Concern #1: Uninterested employees Potential Solution #1: Cowlick Creamery must be a fun environment and we need to insure that employees are passionate and excited about their work. This will be achieved through training programs and management meetings. Hiring employees who thrive on customer interaction and enjoy serving others will set this company apart from the beginning. Training customers to bring passion to their work will be vital. Rewarding good customer interactions through a rewards program and employee compliment board will encourage a positive employee environment. I will be hiring employees who are older than most ice cream shop employees and will be paying higher than minimum wage payment. Working with the employees and asking questions about their lives and their experience at the company through monthly one-on-one meetings will allow a place to encourage employees to pursue more passion and excitement in their work. Creating a chalkboard in the back of the store that creates a place for employees to record their favorite moments of a shift or encouragement to other employees will develop a sense of community and more passion for their job and community. Potential Concern #2: Employee gossip Potential Solution #2: I will have a low tolerance for gossiping (3 strike rule). Whether it is overheard gossip about customers or other employees, this is something I am unwilling to compromise on. Employees will know this from the beginning through training and will be aware of this policy. If it is found out that employees are speaking poorly about others, there will be a formal warning. If it happens again we will discuss if it is better for them to no longer work at the company anymore. It is vital to have a positive employee working environment, because customers can see more than you might think.

Customer Service: Potential Concern #1: Unfriendly workers Potential Solution #1: Intense training and weekly manager meetings will set the bar high for employees. Hiring employees that are passionate about people rather than those who are just looking to make money and gain experience at their first job will be a key part of interviewing employees. Because customer service was a main complaint for customers attending Baskin-Robbins, I want to insure that this is addressed with my employees. Insuring that there is always more than one employee working in the shop will create accountability. Rewarding good customer interaction experience by setting an “Employee of the Month” program up will create an incentive for employees to interact more positively with customers. Encouraging small talk and giving employees the resources to create long-term customer interactions will set our company apart.

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Potential Concern #2: Unsatisfied customers Potential Solution #2: Rather than having customers turn to Yelp where complaints can affect future business, a system will be in place for customers to respond to the service they have received. Our shop will have interactive iPads or comment cards displayed to record customer response and feedback. Rewarding customers to take these surveys by rewarding them with the possibility of free ice cream in the future will create a place for customers to feel heard if they were unsatisfied with their product. Personally emailing customers if they had a bad experience will give our company a chance for the customer to give us another chance

Research: Potential Concern #1: Unpopular flavors Potential Solution #1: Recording the number of ounces each flavor of ice cream sells each day will give the chef an idea as to the popularity of each flavor. Making a chart for each day and recording the number of ounces remaining for each flavor will help us know which flavors are the most popular and which flavors could be replaced with other, more popular flavors. Potential Concern #2: Disconnect between reality and owner’s perception (ignorance card) Potential Solution #2: Conducting a bi-yearly survey and researching customers through focus groups all-day surveys will help us know where our weaknesses are. Offering a survey through social media and rewarding customers through free ice cream will communicate that we care about their needs and value their feedback. Having a disconnect between how your customers perceive you and the product you are offering could be painful for our company. By reaching out to customers through conversation through feedback and response through iPad comments in the store, we can address concerns throughout the year as well.

PURPOSE STATEMENT

Cowlick Creamery is all about creating ice cream with farm fresh ingredients and rich, customizable flavors. We have a close connection with our local farmers because food should not only be good, but also carefully crafted. What you see is what you get—from watching the product made in the kitchen behind the counter, to customizing it with your choice of toppings right in front of you, we have put simple back into the art of ice cream. Cowlick Creamery is dedicated to socializing. We offer an abundance of comfortable seating so you can enjoy your ice cream along with a long conversation. Our staff is friendly and well-trained, ready to help you create the creation you have been dreaming up. Our store is kid-friendly, with an abundance of entertainment once they finish their treats. Whether it is the chalkboard wall, rope swing, or farm animal displays, we love kids and encourage playfulness. Cowlick Creamery’s philosophy is simple: Quality ingredients, kid-friendly shops, and inviting atmospheres that provide positive memories with a small-town feel.

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WHY WILL COWLICK CREAMERY BE SUCCESSFUL?

Cowlick Creamery will be successful because it addresses the wants and needs in the industry. Ice cream shops have taken the social out of ice cream, focusing primarily on getting you the product you want. Customer interviews overwhelmingly stated that choosing to purchase ice cream comes from a social need and they are really looking for a place to enjoy time with a friend. A tasty treat is an added bonus! Cowlick Creamery will address these concerns. The shop will be devoted to creating an abundance of seating for customers. Additionally, our shop will address customer’s growing concern for fresher ingredients. While most customers were looking to indulge in a sugary treat, a common theme of fresher ingredients and more care into the culinary process indicated a real gap in the ice cream industry. Cowlick Creamery is in close communication with the dairy farm it works with. We work closely with our chef to master the perfect recipe. We will be successful because we target a specific demographic—mothers. We are where they are—near shopping malls, yoga studios, YMCAs, and parks. Our success will come from our dedication to the quality and consistency in which we address the needs of our target market as well as the needs that continue to arise in the industry.

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COWLICK

CREAMERY

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POSITIONING MAP #1

Cowlick Creamery is placed where it is on this map because customers have indicated a desire for fresher ingredients (Customer #2, 3, 6, 7, 8, 9, 15, 16). Cowlick Creamery is dedicated to farm fresh ingredients without compromising taste. Customers and industry research indicated a desire for more experience-based ice cream (Article #4, 6, 9, Customer #1-30). Involving customers by making the experience personal will differentiate Cowlick Creamery from its competitors.

CreativeExperience

SimpleExperience

FreshIngredientsHighlyprocessed

A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee E à Cowlick Creamery

A

B

C

D

E

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POSITIONING MAP #2

Cowlick Creamery is placed where it is on this map because it is dedicated to addressing a need in the market for a kid-friendly ice cream shop. Professionals indicated a majority of their customers as being young kids, but customers pointed out a lack of kid-friendly options at the various competitors (Professional #7 Customer #10, 11, 12, 21). Additionally, nearly all customers indicated that their choice to attend an ice cream shop was to fulfill a social need. Both competitors lacked seating, so Cowlick Creamery will provide an abundance of comfortable seating (Customer #2, 3, 5, 18 Professional #3, 13).

AlwaysEnoughSeating

AllAboutKids

HardToFindaPlacetoSit

AllAboutAdults

A à Cold Stone B à Baskin-Robbins C à Yogurtland D à Honeymee E à Cowlick Creamery

A B

C

D

E

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PRIMARY TARGET MARKET ANALYSIS 1. Primary Demographic: Cowlick Creamery’s main target market is stay-at-home-moms ages 22-35 with young children looking for a place to catch up with their friends. By addressing specific needs of this demographic, this shop will generate success. The understanding of a need to address this target market came from two customer interviews in particular (Customer #8, 21). 1. Mothers (ages 20-45) with children (0-10) looking for a place to enjoy time with friends without getting childcare 2. All ethnicities 3. Middle to upper income Why: I ranked demographic as the most important element of my shop because it guides a majority of the factors that will differentiate us from other shops. Who our customer is will be the most important element of our shop. Why: I chose this target market because I saw a need in the industry. Mothers often go to coffee when they are looking to catch up with friends, but this creates a distraction if their kids are not entertained (Customer #8, 21, 31). Narrowing in on specific needs of this demographic will differentiate Cowlick Creamery. 2. Primary Psychographic: Cowlick Creamery is targeting people who value spending quality social time with others. They value talking, socializing, and sharing time with friends and family. Cowlick customers also value the ingredients and care that is in their food. Research found that the leading reason people chose to go to an ice cream shop over purchasing ice cream from the store was to fulfill a social need (Customer #1-30). 1. Family is very important 2. Values socializing 3. Cares about where their food is coming from 4. Thoughtful design and clean atmosphere 5. Good morals 6. Indulging Why: I ranked primary psychographic second because the product we are offering is seeking to fulfill a need for the values of a specific psychographic. People who care about who they are eating with, where their food is coming from, and the atmosphere in which they will indulge is a leading aspect that will get Cowlick Creamery customers to visit our shops. Why: I chose this specific demographic because understanding the target market’s values and ideas that drive their decision-making factors will be a leading factor that will set Cowlick apart from other competitors. By seeing that the customers care about—where the food is coming from, interactive experiences, and fulfilling social needs is essential to the Cowlick Creamery experience.

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3. Primary Benefits: Cowlick Creamery will offer its customers rich and creamy ice cream with quality ingredients. They will put care into the process of creating their ice cream. There will be a interactive element to choosing their toppings from a small variety of basic flavor choices, which will allow the customer to get exactly what they want. We will offer a large amount of seating—from couches to large tables—giving customers a place to socialize and enjoy a delectable treat. 1. Farm fresh ingredients 2. An abundance of seating 3. Kid-friendly flavors, entertainment, birthday party options, and sizing Why: I ranked primary benefits third because it is incredibly important to the success of the company, but is the result of the two leading factors. Addressing the demographic and psychographic needs of mothers created these primary benefits. Choosing farm fresh ingredients, a place for mothers to socialize with friends and kids, and providing a kid-friendly environment is what will separate us a part from other competitors looking to address these needs. Why: I chose to provide these benefits to my customers because it addresses a variety of needs that came up in customer interviews. Social and cultural factors indicated a desire for more tasteful ice cream with more of an emphasis on the experience (Article #7). Ice cream seems to be a constant want in American culture, so providing benefits that serve a specific demographic and psychographic will be essential to the success of Cowlick Creamery. 4. Primary Location: The location of Cowlick Creamery will be in an upscale suburban shopping area near boutiques, children’s clothing stores, and other eateries. 1. In an upscale old-town downtown shopping area 2. Proximity to women and children clothing shops 3. Large enough store for ample seating 4. Near a large park with a playground Why: I ranked primary location last because it has proved to be a leading decision-factor in why customers choose certain dessert options over others, but I do not feel it leads in this demographic. It will be vital to have my store located near others shops that will draw mothers in. Having close proximity to schools, other shopping areas, hair salons, and other shops that fulfill the social needs of mothers will be vital. However, it follows many of the other leading target market factors. Why: I chose to put Cowlick Creamery in an upscale shopping center because the surrounding shops will draw in many customers with similar wants and needs. My primary demographic wants to be in the hippest places for moms with close proximity to parks and other activities that will entertain a social outing for mothers and their children.

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PRODUCT ANALYSIS & STRATEGIES Product Objectives: Cowlick Creamery is an ice cream shop with the goal of creating an ice cream experience that offers farm fresh ingredients, an environment for mothers and their children to sit and socialize, and indulge in customizable ice cream options and espresso coffee options. 1. Farm fresh ingredients with a close connection and relationship with local farmers and dairy-providers. 2. Kid friendly environment and flavors 3. Ample seating with comfortable couches, tables, and inviting spaces 4. Customizable ice cream experience with a variety of toppings 5. Clean shop with trendy design appeal 6. Back-store children’s birthday party kitchen for “make your own ice cream” birthday options. Product Strategies: Cowlick Creamery is all about moms and their kids. This is evident through the unique strategy of taking kids along on an ice cream experience. Customizable creations with flavors and menu options specifically geared towards children (named after animated characters, bright colors, and small portion sizes) will have kids screaming, “Mama, I want to go back to Cowlick.” Keeping kids entertained through a hanging rope swing, child-sized cow structure to climb on, or small farm-themed interactive activities will communicate to mothers that this is a place where their kids can be entertained while they talk. The small play structure will not compromise design elements, but will enhance the experience for mothers and children—something that the market lacks (Professional #3, 7 Customer #8, 13). The store will have a kitchen space and room open in the back of the shop for children’s birthday parties, where they can learn about the process of creating a farm-fresh ice cream flavor just for them. While Cowlick Creamery offers child-friendly options, our target market is specifically built around mothers looking for a social activity. Comfortable couches, seating, and tables offer mothers a place to socialize with other moms. Emphasizing farm fresh ingredients through an advertised partnership with local, organic farms and dairy providers will give mothers the assurance that they can offer their child a creamy ice cream treat while they enjoy a latte with farm-fresh milk from the store’s espresso machine. With mothers in mind, this shop will beat its competition by providing exactly what mothers and their children want—a rewarded experience for good behavior for a child who tagged along to a mom-and-me play date, a kid-friendly place for mothers to socialize, and a rich and decadent customizable culinary experience that will satisfy anyone’s craving for a rich and creamy ice cream treat. Unlike Cowlick’s competitors, customers will know what to do once they get their ice cream. There will be a large designated place for them to sit and enjoy their ice cream, for kids to be entertained, and for customers to consider how their ice cream was made (Professional #6 Customer #1, 2, 3, 12, 17, 28, 29). Cowlick Creamery will have at least four employees working at all times, whether it is in the store’s front or making the ice cream in the back of the kitchen (visible to customers) (Customer #15). The product will be rich and creamy, but it will come straight from the kitchen, something customers and society has indicated as a growing desire (Article #9 Website #12 Customer #2, 5, 6, 7, 8, 9,10, 15, 23, 26, 29, 30).

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Why: Cowlick Creamery will offer fresh ingredients, delectable ice cream, and kid-friendly options because the market indicates a need for this type of service. Customers want more kid-friendly options (CI # 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 20, 22 PI #3, 5, 8, 10), customizable treats (CI #1, 13 PI #4), and fresher ingredients (CI #4, 6, 7, 9 PI #3, 8). While articles indicate a declining trend due to increased health awareness, customer interviews indicated that customers care less about the fat and sugar content and more about the care put into the ingredients (CI #4, 6, 7, 9, 17 PI #2, 3, 4). Interviews also identified a need for more seating and a more comfortable environment for customers (CI #2, 3, 5, 18 PI #3, 13). Cowlick will be successful because it addresses customers shifting wants and needs and narrows in on a demographic specifically geared toward mothers and children—a demographic with room in the industry to improve addressing their needs.

PRICING ANALYSIS & STRATEGIES

Pricing Objectives: Cowlick Creamery’s pricing objective is prestige. With our target market in mind of a middle-to-upper-class mother, offering a premium farm fresh product for an affordable price would take away from the image Cowlick is hoping to create. Pricing Strategies: Cowlick Creamery’s main strategy is to create a premium product with a premium price. Emphasizing the importance of ingredients while providing a place for children to play is important. Customers did not seem to indicate a care of the price of their ice cream, especially if it was made with premium ingredients (Customer #3, 2-11, 31). Choosing to price the product below Cold Stone’s industry high allows mothers to still feel comfortable making a frequent stop at this shop. If price is too much on the high-end, we will loose frequent customers if the pricing is too high in regards to the industry average. Customers indicated that they are willing to pay more money if it means that the ingredients are fresher and more care is put into the process of creating the ice cream (Customer #3, 31). Why: Cowlick Creamery will price their ice cream in the middle to high range of the industry average because it matches the target market we are aiming to provide a product for. High-end mothers who have just gone shopping with their kids and are looking for a reward for their children likely will not care what the pricing of the ice cream is (Customer #8). While we do price on the higher-end of the market, this does not meet the industry high because we do not want to create an image of being unaffordable for mothers. Addressing the needs of children does lower the high-end image we are hoping to articulate to mothers. Appealing to children and charging a price far beyond the industry average would not make sense to mothers (Customer #13).

Baskin-Robbins Cold Stone Industry Average Cowlick Creamery Single Scoop $2.79 $5.00 $3.22 $4.00

Double Scoop $3.99 $5.25 $4.35 $4.50

Take Home Quart $5.99 $8.00 $6.33 $7.80

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PLACE ANALYSIS & STRATEGIES

Place Objectives: Provide a store location with enough seating and room for children’s activities and birthday party room (store loft possibility). The objective of Cowlick Creamery is to be near the places mothers like to socialize. 1. Close proximity to parks 2. Close proximity to shopping centers 3. Historic and trendy vibe to appeal to high-end demographic 4. Close proximity to schools Place Strategies: The main strategy of Cowlick Creamery is to be convenient for its customers by being where the action is. Providing a place near the areas mothers tend to socialize with children such as shopping centers with children’s boutiques, yoga studios, parks, recreational centers, and women’s shopping stores and hair salons will bring in more of the customers we are hoping to draw in. Mothers with an upper-scale, trendier bent appreciate shops in more historic and boutique-y shopping centers. Cowlick will succeed in an area that brings in mothers who want to socialize. If this means that mothers will drive to a town center for a play date with another mom and child, it is likely that they would do this (Customer #11). Customers interviewed in this industry indicated a desire for a larger shop so they could enjoy more space to socialize (Customer #2, 3, 5, 18, 31 PI #3, 13). Placing the shop in a highly suburban upscale neighborhood insures the presence of families. A historic location would lend to the farm-fresh feel because it continues the desire for a cohesive timeless, farm-fresh, and trendy environment. If Cowlick Creamery were to open up in one month, I would choose to place the shop in the downtown center Orange. This location has close proximity to parks, yoga studios, the YMCA, is next to a children’s boutique, and in close proximity to elementary schools. Other eateries, clothing shops, and antique malls draw in high-end mothers with close proximity to surrounding suburbs.

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Why: I would place Cowlick Creamery in an up-scale historic shopping area because it appeals to the target market’s lifestyle habits. Middle to upper class mothers seek to socialize in areas near shopping areas, parks, and shopping centers within highly populated suburban surroundings. Interviewed customers indicated that surrounding shops, theaters, parks and proximity to their neighborhoods were main decision-making factors for customers choosing certain shops (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12). Being sensitive to the habits of mothers and children will be crucial to discovering the best place for this location.

PROMOTION ANALYSIS & STRATEGIES Promotion Objectives: The promotional objective of Cowlick Creamery is to evoke behavior and stimulate demand. Because no one has heard about this new shop, the main promotional objective is to convince mothers that they can benefit from this ice cream shop. Initial Promotion Strategies: The primary intent of Cowlick Creamery’s promotional objective is to inform the market in order to evoke behavior and stimulate demand. In order to do so specific strategies must be put in place to create a long-term customer. Awareness: Creating awareness will take place in a variety of different ways: • Social media: get people talking by marketing the Cowlick Creamery brand before the store’s

opening. Use social media to get moms excited about the newest hang out location. • Partner with local social media mom bloggers to visit the store and explain more about the

shops through their Instagram posts. • Farmers market: selling our product at local farmers markets will create an awareness an

understanding of our product’s desire to be farm fresh and to use local ingredients. • Partner with a local children’s clothing stores to cater shopping events to generate awareness

of our product. Partnering with local stores will create a sense of small-town partnership and local-food image.

• Asking local shops to provide a free ice cream handout with each purchase made from their shops to evoke behavior.

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• Cater at elementary schools, preschools, and kindergarten schools for end of the year parties. • Partner with the farms we purchase our dairy and eggs from to explore the possibility of an

outdoor petting zoo at local parks, elementary schools, and community centers to evoke interest in Cowlick’s farm fresh brand. Use this as an opportunity to educate families on your new location. Give out T-shirts rather than free food in order to create a long-term encouragement to visit the shop.

Trial: After the initial push to generate customers through social media, mom bloggers, farmers markets, local boutiques, preschools, and local petting zoos, the grand opening will be a huge indicator of the response to this product. Informing mothers and children of my shop will be what keeps Cowlick Creamery successful. Packaging items with high-quality bags, creating brand of t-shirts, and stickers will create a brand connection and stimulate conversation and brand popularity. Word of mouth will be a crucial element of the success of my store. If moms are passionate about the product, there will likely be more talk. Creating women’s book clubs, encouraging my church’s women’s Bible studies to meet here, and creating a partnership with local elementary schools through sponsoring events are practical ways I can stay involved in the community. Developing an iPhone app with rewards programs scanning will encourage moms to keep coming to my shop. Evoking behavior by offering free small children’s ice cream for children four and younger in small sample cups will encourage moms to come with their children. Repeat: Repeating these different techniques by evoking positive behavior will draw in the community. Involvement with the community will be crucial to the success of my company. Creating a long-term customer base through these techniques will be crucial. Foot traffic through downtown Orange on weekend nights will generate traffic for kid-friendly ice cream and delectable ice cream for people of all ages. The week-day afternoons will be successful through community involvement with local yoga studios, YMCA, clothing boutiques, and eateries. Doing educational events for children, “make your own ice cream” mommy-and-me days, and children’s live music events will draw in stay-at home moms throughout the month. What will keep customers coming is the unique benefits we offer for a specific demographic. By offering unique benefits that customers have indicated as being un-met needs in the industry, it will be a matter of evoking behavior in order to generate long-term customers. Unlike Baskin-Robbins and Cold Stone Creamery, I will not evoke behavior through frequent promotional discount events and coupons. With a high-end product with farm fresh ingredients and a welcoming place to stay and visit, customers shouldn’t need an incentive to visit my shop multiple times a year. Coupons will lower the image of the brand Cowlick Creamery hopes to communicate (CI #1, 13 PI #5). Rewards apps will stimulate enough behavior for mothers to create a frequent customer base. Weekly events will draw in customers and keep the shop busy. Why: Cowlick Creamery will be successful in its promotional endeavors because it will create awareness by bringing its brand image with it. There will be no need for free ice cream days or discounted coupons to persuade business. Instead, we will create a local image through farmers markets, partnership with local shops, a vibrant social media team, blogging involvement, and partnership with local churches, elementary schools and various aspects of the community. Cowlick’s unique product addresses a need that customers had for fresh ingredients and an

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inviting environment (CI #2, 3, 5, 18 PI #3, 13). A bonus is close proximity to a variety of other shops, which is what customers found to be a main reason they chose certain shops (CI #5, 11, 12, 13, 14, 15, 18, 21 PI #2, 3, 7, 12). Cowlick Creamery will not adopt the same promotional techniques of Competitor #1 and #2. Instead, they will be involved with the community, addressing needs and evoking behavior through involvement in the community.

WEBSITE ANALYSIS & STRATEGIES

Website Objective: The main objective for Cowlick Creamery’s website is to inform customers about our company and allow a place to answer customer questions. This website will utilize the most updated version of design in order to appeal to a modern and updated format of web design for our target market. Our website will display the passion and purpose behind our ingredients. Website Strategies: The Cowlick Creamery website will display the art and passion behind the brand through a well designed and interactive web experience. Like the product we are creating, our website will be seamless and display and care behind the quality of the food we are creating. Cowlick Creamery will offer children’s Birthday parties and cooking classes, both of which can be scheduled online. Our website will provide basic information about our location, in depth history of the farms we work with to get our ingredients, and a video on the homepage explaining more about the Cowlick brand. Creating an app that offers a rewards program and an interactive game will create a reason for customers to keep this app downloaded on their phone. Interviewed customers said that a rewards program for an app would likely not create enough justifiable reason to keep an app downloaded on their phone, but an interactive game would likely improve the chance of them wanting to get more rewards and have a new game option (Customer #31). Informing customers of the Cowlick brand, ingredients, operating hours, owner information, and catering and birthday party options will give customers the information they are looking for. Social media will be vital for my target market. Hiring a social media and marketing employee to promote the Cowlick Creamery name will generate internet traffic and communicate a commitment to the trends that moms care about. Interacting through social media will generate more discussion in the community and better explain the brand we are looking to provide for customers. Unlike Baskin-Robbins and Cold Stone Creamery, the website will be a place that meets the sole purpose of informing customers of our brand and relevant information. The main emphasis of the website will not be to promote our product. Instead, answering relevant questions through videos, seamless design, and informational pages will communicate a passion and pride behind our product, rather that an urgency to sell our product. Why: Interviewed customers did not visit company websites for both competitors. However, when they did look online for information regarding the company, they turned to Yelp and a basic Google search to find hours of operation or an address. By creating a website that will encourage customers looking for this information to stay a little longer through creative videos will allow an opportunity for customers to better appreciate the unique brand we are hoping to provide.

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WORKS CONSULTED

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ARTICLES

Article #1: Elissa. Business Source Premier. "Baskin-Robbins Takes 'Express' Route To Speed Service, Grow Sales." 43.7 (2009): 4-35. Why Relevant: This article discusses how Baskin is attempting to appear more convenient for customers by opening up smaller kiosk locations. It show how the company is attempting to cater to a more fast-paced generation. Article #2: MacArthur. Business Source Premier. "Cold Stone Creamery." 76.7 (2005): S-10. Web. 29 Feb. 2016. Why Relevant: Article discusses the efforts Cold Stone is taking to improve marketing, especially with cakes, and the attempt to use photos and online resources to improve their success. Article #3: Gibson. Wall Street Journal , “"Franchising; the Inside Scoop: Cold Stone Creamery Attracted a Lot of Franchisees Thinking it was a Sure Thing; it Wasn't." Jun 16 2008. ProQuest. Web. 1 Mar. 2016 . Why Relevant: Discusses negative aspects of owning franchises in this industry and the ways they can be improving. It is important to include how the competitors are failing to meet customer and owner’s needs. Article #4: Chozick . Wall Street Journal , “Cold Stone Aims to be Hip in Japan; Ice-Cream Chain Uses Word of Mouth as Part of Bid for an Urban Image." Dec 14 2006. ProQuest. Web. 1 Mar. 2016 .Why Relevant: Discusses the need for a more hip image and discusses the efforts different companies are taking to do so. Article #5: IBISWorld US iExpert Summary (Coffee & Snack Shops in the US) Why Relevant: Discusses economic effects of the change in snack shops and ice cream stores as well as consumer potential. Article #6: Slate. LexisNexis, “One Hundred ways to ruin ice cream,” August 5, 2012. Why Relevant: Discusses the effect of the rising ice cream boutiques and a desire to target adults rather than children. Article #7: Dunkin Brands IBIS US industry report Why Relevant: Gives an extensive report of the company, which includes statistics, trends, and marketing tactics. Article #8: IBISWorld Industry Report Ice Cream & Gelato Store Franchises in the US Why Relevant: Gives an in depth overview of the ice cream industry and the effects over the years of health trends, statistical affects, and specifics of each major competitor. Article #9: Lexis Nexxus: “Ice cream lovers face the ultimate choice: better for you or premium” The Toronto Star. July 16, 2005. Why Relevant: Discusses the shift in the industry to approach ice cream as being more health-conscience. Article #10: Ice Cream vs Frozen Yogurt: The Toronto Star (July 16, 2005) Why Relevant: Discusses the effect of weather, tension of new need for health conscience choices, and the rise of the frozen yogurt industry.

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WEBSITES

Website #1: http://www.yelp.com , last viewed 5-16-16 Why Relevant: Yelp for both companies gives me a look into the customer interactions and reviews. Website #2: https://www.coldstonecreamery.com last viewed 5-10-16 Why Relevant: This it the website of my competitor #2 Website #3: https://www.baskinrobbins.com/content/baskinrobbins/en.html last viewed 5-10-16 Why Relevant: This it the website of my competitor #1 Website #4: https://www.facebook.com last viewed 5-10-16 Why Relevant: facebook for both competitors gives a look into customer interactions and experience. Website #5: http://www.honeymee.com last viewed 5-10-16 Why Relevant: This is the website of another local popular ice cream shop with more of a boutique feel. Website #6: http://www.aftersicecream.com/#about last viewed 4-7-16 Why Relevant: Provides an example for a trendy ice cream shop that has proved successful in Southern California. Website #7: http://n7creamery.com/new-page-1/ last viewed 2-29-16 Why Relevant: This is another local ice cream parlor with more of an emphasis on experience Website #8: http://www.idfa.org/news-views/media-kits/ice-cream/the-history-of-ice-cream last viewed 4-10-16 Why Relevant: discusses the history of ice cream and the current trends within the industry. Website #9: lhttp://smallbusiness.chron.com/ice-cream-industry-18216.html last viewed 4-10-16 Why Relevant: discusses statistics of the ice cream consumer industry. Website #10: http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-region/united-states/market-intelligence/ice-cream-and-frozen-desserts/?id=1410083148491 last viewed 4-10-16 Why Relevant: discusses statistics of the ice cream consumer industry. Website #11: http://www.fitness.gov/resource-center/facts-and-statistics/ last viewed 4-10-16 Why Relevant: Discusses America’s increasing health problems and the growing obesity. It discusses how Americans are beginning to care more about what they eat. Website #12: http://www.mintel.com/blog/food-market-news/ice-cream-insights-and-consumer-perceptions-3-trends-impacting-the-us-market last viewed 4-10-16 Why Relevant: Very helpful cite in my research of understanding how this market is adjusting to emerging trends.

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Website #13: http://fortune.com/2014/07/24/ice-cream-sales/ last viewed 4-10-16 Why Relevant: This article discusses the ice cream industry potential and recent trends. It discusses how people believe the frozen yogurt industry is likely not going to maintain the success people originally expected it to. Website #14: https://www.yahoo.com/style/how-much-does-america-love-ice-cream-yahoo-food-126114505346.html last viewed 4-10-16 Why Relevant: This website gives helpful general statistics in regards to Americans and their love for desserts. States that studies show ice cream is America’s favorite dessert and provides examples. Website #15: https://www.technomic.com last viewed 4-10-16 Why Relevant: This website discusses the technological needs that are beginning to arise in this industry. People are starting to demand more use of technology in their food ordering experiences and it is important to be aware of this when growing and adjusting the industry. Website #16: http://www.ocregister.com/articles/ice-632108-cream-flavors.html last viewed 4-10-16 Why Relevant: This article addresses the technological approach at ice cream in regards to the liquid nitrogen industry. It gives opinions and historical summaries of this industry. Website #17: http://menchiesfranchise.com/research-menchies/how-large-is-the-frozen-yogurt-industry/ last viewed 4-10-16 Why Relevant: This website provides very specific statistics in regards to the frozen yogurt industry. It shares the history and benefits of this industry and supports the growth of this market from a biased perspective. Website #18: http://www.moneycrashers.com/prevent-lawsuits-get-sued/ last viewed: 4-10-16 Why Relevant: shows what the process of lawsuits entail. Website #19: http://www.fda.gov/Food/IngredientsPackagingLabeling/LabelingNutrition/ucm248731.htm last viewed: 4-10-16 Why Relevant: Shows what the process of lawsuits entail in regards to calorie and food labeling. Website #20: http://www.benjerry.com last viewed: 5-2-2016. Why Relevant: gives an example of a competitor that serves a more premium product than Cold Stone. Website #21 https://www.youtube.com/watch?v=0_geOLx_AR4 last viewed 5-8-16. Why Relevant: gives a promotional example of Baskin-Robbins. Website #22 https://www.instagram.com/coldstone/ last viewed 5-8-16. Why relevant: shows how Cold Stone utilizes social media on their websites.

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PROFESSIONAL INTERVIEWS Professional Interview #1: Female College aged Cold Stone employee for 1 year Interviewed on 3/20/16 at Cold Stone La Mirada Why Relevant: Olivia has seen a side of the industry that not many have. She knows the type of people that visit and the most popular items that are being sold. She was also a peer so she was able to speak to the culture of the store in a more objective way. Professional Interview #2: Male manager of Cold Stone La Mirada for 7 years Interviewed on 4/10/16 at Cold Stone La Mirada Why Relevant: I asked Jay a lot of questions regarding the changes in the industry over the past seven years. He said that over the past seven years, more people have asked about healthy options than ever before. They sell sherbet and some options that cater to people with special health requests. Jay said that the location of his store is what makes them so successful: next to the movie theater, Biola, and in a great neighborhood. He says they sing to their customers and they love that. Professional Interview #3: Female College aged student manager at Baskin-Robbins for 2 years Interviewed on 4/10/16 at Baskin La Mirada Why Relevant: Customers are mainly children and adults… not really the younger crowd. Location does not draw in a lot of people, needs to be more updated. Says frozen yogurt hasn’t been competition because it is a different texture. Mostly kids with parents or just parents and adults from neighborhoods. Younger crowd goes to more trendy places. After baseball games people go here. In recent years more people have asked about healthier options and diary-free options. Professional Interview #4: Female Student employee at Lappert's Ice Cream for 3 years Interviewed on 4/10/16 at Biola University Why Relevant: Says the industry is growing because more creative flavors and it is becoming more of an art. Peak times are 1-3pm and 8:30-10. Families are the main customers at this shop. Says people are caring more about what’s in the food than ever before. If she were to be in charge of the shop she would make the scoops bigger. Her location recently converted to hand held iPad and uses cash for cash registers. Punch cards are used for rewards systems. Employees get rewards if they meet sales goals. Breaks for employees are the only political and legal factors she can think of. Professional Interview #5: Male Cold Stone employee for 3 years Interviewed 4/11/15 at Biola University Why Relevant: John was a manager and employee at Cold Stone for three years. He is a recent business graduate of Biola. He approaches these topics from a business perspective and is a vital

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resource for this project. He spoke to many of the sections and knew the strengths and weaknesses of the Cold Stone business model from an insider’s perspective Professional Interview #6: Kristen Smith, myself Has been studying the industry for 3 months Why Relevant: Has experience from a customer and researcher’s point of view Professional Interview #7: 1 year Female Cold Stone employee Interviewed 4/18/15 at Cold Stone La Mirada Why Relevant: Says customers mostly come for movie theaters, it is important to be friendly, more kid specific options, healthier options are important. More adults come than she expected. Professional Interview #8: Female Cold Stone employee Interviewed 4/18/15 at Cold Stone La Mirada Why Relevant: says customers are mostly young with their parents. Gave idea of having healthier options. Said that Cold stone would benefit by having more cotton candy and kid-friendly flavors. Professional Interview #9: Young female Honeymee employee for 3 months Interviewed 4/18/15 at Honeymee La Mirada Why Relevant: Says that ice cream is unique and draws a lot of people in because of natural flavors. Appeals to a 20 something audience. Social media is HUGE for their publicity. Very Asian heavy culture and location draws in an Asian environment. Branding is very important in communicating an experience to customers. Professional Interview #10: Female Baskin-Robbins employee for 1 year Interviewed 5/7/15 at Baskin-Robbins La Mirada Why Relevant: Says that kids love the element of choosing their own flavor. The strength of their product is that it is affordable and people of all ages can enjoy it for a low price. Professional Interview #11: Female Baskin-Robbins employee for 6 months Interviewed 5/7/15 at Baskin-Robbins La Mirada Why Relevant: agreed with much of what professional interview #10 said but added that their busiest hours were on weekends and Friday nights.

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Professional Interview #12: Female Cold Stone employee for 1 year Interviewed 5/6/15 at Cold Stone La Mirada Why Relevant: Said their busiest times are Friday nights and weekends during the most popular movie showings. Some customers take ice cream to go. When asked if the environment was inviting to customers looking for a place to sit for a long period of time, said that they have seating but the location is small so it sometimes is hard for people to find seating. Professional Interview #13: Female Cold Stone employee for 4 months Interviewed 5/6/ at Cold Stone La Mirada Why Relevant: Says that customers typically purchase the medium size because the “like it size” looks so small. However, they pack the product full and their product is richer than most ice creams. She thinks this might be a technique. Says she likes the texture of Cold Stone ice cream more. Thinks their location could improve its environment.

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CUSTOMER INTERVIEWS

Customer Interview #1: Female Biola student and Cold Stone customer Interviewed 3/20/16 at Biola University Why Relevant: She loves cake batter ice cream and comes back simply because of this flavor. She goes to Cold Stone 4-6 times a year. She likes the type of the ice cream, the toppings, cold block, chopping. She says the employees are nicer, the ice cream is creamier, and considers Baskin to be a cheaper ice cream value. Customer Interview #2: Male Biola Student and Salt & Straw customer Interviewed 3/15/16 at Biola University Why Relevant: Says he has been to cold stone in recent months on a date. He prefers going to trendier shops like salt and straw. Not a fan of the rich and creamier ice cream. Would prefer eating sherbet and they do not have these options. Ice cream for him is an experience and the location feels sterile and impersonal. Customer Interview #3 Female Biola Student and N7 customer Interviewed 4/8/16 at Biola University Why Relevant: Loves the owner/ goes because he caters to customers (turns down music). She says she would much rather go to a Cold Stone because of childhood memories. They have done a great job of making it an experience. She likes that they cut the food in front of her, displaying it as a process. She says Baskin has seemed impersonal and would not choose to go there. In recent years she has found trendier places to be more inviting. She likes the experience of these places more. Customer Interview #4 Male Biola Student and Baskin customer Interviewed 4/10/16 at Biola Why Relevant: Good weather, knowledge of you working out in the last week, and friends. Goes four times a year. Depends on whom he goes with. Not to Baskin if he is with certain groups of people who care about the trendiness of the shop. Embarrassed by outdated advertising. Customer Interview #5 Female Biola Student and Cold Stone Customer Interviewed 4/17/16 at Biola Why Relevant: Certain ice creams hurt her stomach so she avoids certain shops because of health reasons. When she does go out to ice cream she really wants to enjoy it so she gets the creamiest she can. Goes to Cold Stone frequently and says they could improve by adding more seating.

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Customer Interview #6 Male Honeymee Customer Interviewed 4/4/16 at Honeymee La Mirada Why Relevant: Knew the owner and decided to try this location because they have fresher ingredients. Customer Interview #7 Male Honeymee Customer Interviewed 4/4/16 at Honeymee La Mirada Why Relevant: When asked if what they would do to improve industry, said they would prefer healthier options. Customer Interview #8 Female Honeymee Customer Interviewed 4/4/16 at Honeymee La Mirada Why Relevant: Healthier options are very important to them and suggested trying Trader Joes flavor to me. Customer Interview #9 Male Honeymee Customer Interviewed 4/4/16 at Honeymee La Mirada Why Relevant: Went to store in Los Angeles and decided to try this closer location. Said the flavor is very unique and texture is different than most. He prefers a more unique style of ice cream. Customer Interview #10 Child Honeymee customer Interviewed 4/4/16 at Honeymee La Mirada Why Relevant: Seemed bored and uninterested in the environment of the location. Playing video games while parents were talking. Said they liked the ice cream but preferred Baskin and Cold Stone because it is more kid-friendly. Customer Interview #11 Child Baskin-Robbins customer Interviewed 4/4/16 at Baskin-Robbins La Mirada Why Relevant: Chooses to go here because of wide variety of flavors. He prefers this to Cold Stone because there are more kid friendly options. Parents always take him here. Customer Interview #12 Child Baskin-Robbins customer Interviewed 4/4/16 at Baskin-Robbins La Mirada Why Relevant: Likes Baskin because it has cotton candy flavor. Prefers this or frozen yogurt.

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Customer Interview #13 Female mother with her five children and husband Interviewed 4/4/16 at Baskin-Robbins La Mirada Why Relevant: Came because of gift card. They go to this store or Thrifties. Chose Baskin because of proximity. They like the pricing and kid friendly options. Customer Interview #14 Male with wife and five children Interviewed 4/4/16 at Baskin-Robbins La Mirada Why Relevant: Didn’t like that there was limited seating. Here with kids for family night. Loves that there are multiple flavors for kids. Rode bikes with kids to go to store. Customer Interview #15 College-aged female customer with friend Interviewed 4/4/16 at Baskin-Robbins La Mirada Why Relevant: Says ice cream is so cold it loses its flavor. Flavor is not rich. Likes that it is cheap. Doesn’t know if they would get this flavor. Customer Interview #16 College-aged female customer with friend Interviewed 4/4/16 at Baskin-Robbins La Mirada Why Relevant: Says she went to Baskin-Robbins as a kid and appreciated the outdated advertising signs. Sense of nostalgia brought her back but doesn’t know if she would go very often. Customer Interview #17 Female early 20s Cold Stone Customer with friend Interviewed 5/5/16 at Cold Stone La Mirada Why Relevant: Cares more about the experience and the feel of the ice cream shop. Likes Cold Stone more than Baskin because it has a better environment and atmosphere than a place like Baskin-Robbins. Customer Interview #18 Cold Stone Customer Interviewed 5/5/16 at Cold Stone La Mirada Why Relevant: Goes to Cold Stone because it is near her brother’s tutoring. Frequent customer and loves a particular flavors. Location is really important to her because she trusts the area and keeps coming because it is convenient. Says she probably wouldn’t go to this particular shop if it had an unwelcoming environment. Customer Interview #19 Cold Stone Customer Interviewed 5/5/16 at Cold Stone La Mirada Why Relevant: On a date with husband and going to a movie close by. Chose this location because it allowed them a place to sit and talk. They both enjoy the variety of flavors. This is not something they do frequently.

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Customer Interview #20 Cold Stone Customer Interviewed 5/5/16 at Cold Stone La Mirada Why Relevant: Likes the variety of flavors and that it appeals to a more adult audience. Says seating is lacking and but they deliver in all aspects of the product. Customer Interview #21 Cold Stone Customer Interviewed 5/5/16 at Cold Stone La Mirada Why Relevant: Wife with husband and kid. Said they chose this location because it was near their home. Likes that there are a variety of flavors and has a creamy texture. Would prefer to have a more kid friendly option. Customer Interview #22 Cold Stone Customer Interviewed 5/5 at Cold Stone La Mirada Why Relevant: Child likes cotton candy and bubble gum flavors. Shop has limited flavors but she loves going here. Prefers Baskin but parents like Cold Stone more. Customer Interview #23 Male Cold Stone Customer Interviewed 5/5 at Cold Stone La Mirada Why Relevant: Was picking up ice cream for his family. Likes the ice cream but said environment is not as inviting for entire family—this is why he was picking it up. Values delicious ice cream. Customer Interview #24 Female Cold Stone Customer with friend Interviewed 5/5/16 at Cold Stone La Mirada Why Relevant: When asked what she would do to improve the environment of the location, said that more seating and better lighting would create a nicer atmosphere Customer Interview #25 Female Cold Stone Customer with friend Interviewed 5/5/16 at Cold Stone La Mirada Why Relevant: When asked what she would do to improve the environment of the location, said that more room for customers and less preparation space would make the shop appear less cramped. Customer Interview #26 Older man with wife at Baskin-Robbins Interviewed 5/5/16 at Baskin-Robbins La Mirada Why Relevant: Looking for a place to go for ice cream with wife. Location is close and he takes grandkids here sometimes. When asked what he would do to improve location, says he would create a better cone option.

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Customer Interview #27 Older woman with husband at Baskin Interviewed 5/5/16 at Baskin-Robbins La Mirada Why Relevant: Likes Baskin-Robbins because it is inexpensive and has a lot of delicious flavors. Prefers chocolate flavors over sherbet and Baskin has a good variety. When asked what she would do to improve experience she said she would create a better seating option and cleanlier, updated feel. Customer Interview #28 Female Biola student at Biola Interviewed 5/7/16 at Biola University Why Relevant: When she goes to locations she already knows what she wants so she doesn’t look at the menu. Doesn’t like how the toppings are not all displayed. Customer Interview #29 Female Biola student at Biola Interviewed 5/8/16 at Biola University Why Relevant: She likes frozen yogurt more than ice cream because there are more topping options and she likes being able to choose what she puts on her ice cream. Customer Interview #30 Male Biola student at Biola University Interviewed 5/10/16 at Biola University Why Relevant: Customer dislikes Baskin-Robbins because it is outdated and uncleanly. Mentioned he expects rats and cockroaches to be walking around because facilities are so outdated. Customer Interview #31 20-something female customer Interviewed 5/15/ at A La Minute Ice Cream Why Relevant: willing to pay a premium price of $6 a scoop because it fulfills a social need of going on a date. Loves the creamy texture and hipster character of shop

PROJECTS REFERENCED Alicia Hoverson: The Pizza Industry (May 2015)