Baskin Robbins Marketing Plan Outline Paper

Baskin Robbins Marketing Plan Final Outline Paper

Lou Ann San Nicolas
MKT 421 Marketing
1. Baskin Robbins Organizational Overview
Baskin Robbins is a franchise based business operating in 35 countries for
the last 65 years. The ice cream shops have more than 1,000 flavors since
1945. Baskin Robbins has more than 150 million consumers worldwide with
2,800 locations nationally and 5,800 stores globally. What began as a small
business opportunity has grown into a solid business model for existing and
future franchise business owners. Despite, by these two ice cream
enthusiasts, whose passion leads to the creation of more than 1,000 ice
creams flavors, and with a variety of delicious treats, such as nutty berry
banana (Baskin & Robbins, 2011). The Baskin and Robbins business home
office is situated in the area of Canton, Massachusetts.
a. Organization
Baskin Robbins Ice Cream Industry
b. Mission Statement
The philosophy and mission statement is eloquently put by a quote from
co-founder Irv Robbins, we sell fun, not just ice cream (Robbins, 2011, p.
1). It is this statement that allowed Burt Baskins and Irv Robbins the
opportunity to grow the business from one store to many.
c. Geographic Locations
The company had become an ice cream mega-empire, consisting of 5,800
stores in different geographical locations throughout the international.
Exhibit 1.1 below shows the international geographic locations of Baskin
Robbins industry (Baskin & Robbins, 2011).

The expansion of Baskin Robbins in the 1970s the chain further went
global in as much as operating stores throughout the hemispheres.
Exhibit 1.1 the international geographic locations of Baskin Robbins
industry.
Baskin Robbins International Locations
Australia Cayman Singapore
Aruba Greece Panama
Canada Guatemala Portugal
Columbia Honduras Puerto Rico
China Indonesia Russia
Curacao Ireland Spain
Dominican Jamaica Taiwan
Ecuador Kuwait Thailand
Egypt Lebanon United Kingdom
India Malaysia Yemen
Korea Mexico
d. Product Mix
The product mix of business, which is generally defined as the total
composite of products offered by a particular company such as Baskin
Robbins; consists of single product lines, the product line, and new product
description. A product line is a group of products within the product mix,
most often are closely related. Despite, the functionality in a similar
manner, and are sold to the same customer groups, are marketed through
the same types of outlets, most often the same price range (Baskin &
Robbins, 2011).

The product is a distinct unit within the produce line that is distinguishable
by size, price, appearance, or otherwise the attributes (Baskin & Robbins,
2011). For example, all the courses at university of phoenix offers constitute
its product mix; courses in the marketing department constitute a product
line, and the basic marketing course is a product item. Product decisions at
these three levels are generally of two types: those that involve width
(variety) and depth (assortment) of the product line and those that involve
changes in the product mix occur overtime (Baskin & Robbins, 2011).
1) Single product
Baskin Robbins, in 1945 released the single product line of snowbird ice
cream in Glendale, California. In the Glendale location Baskin Robbins
featured 21 flavors and emphasized high-quality ice cream sold in a fun,
personalized atmosphere. Despite, the priced is economically, maintained it
single product line quality. Baskin Robbins single product line way of pricing
is premium pricing that means using low price where there is uniqueness
about the product line. The quality Baskin Robbins provides is an
exceptional, which matched the low price in Baskin Robbins single product
line (Baskin & Robbins, 2011).
2) Product line(s)
With a current product line of 62 flavors, a new creative and innovative
product will dazzle delight loyal consumers, and will attract a new region of
customers, most often to savor the Baskin Robbins experiences. Baskin
Robbins has three Products Line; the Beverages, Ice Creams and Cakes.
The following three products line illustrates of Baskin Robbins ice cream
industry (Baskin Robbins, 2005).
Ice Cream: Baskin Robbins has over 1,000 different ice-cream flavors to
satisfy the costumers wants and meet the 31 flavors concept. Ice Creams
are divided as the following: New Flavors: Berry Nutty Banana is a banana
flavored ice cream with ribbons of berry jam with just the right amount of
crushed almonds. Permanent Flavors: such as Cherries Jubilee, Vanilla,

Chocolate, Berry Nutty Banana, Strawberry and other fruits

flavors. Seasonal Flavors: include Quarterback Crunch, Pumpkin Pie and
German Chocolate Cake. Regional Flavors: such as Orange Sherbet,
Berries 'n
Banana (No Sugar Added) Includes; the Black Walnut, the Creole Cream
Cheese, and the Lemon Custard. No Sugar
Added: Chocolate, Chocolate Chip, and Pineapple Coconut. Low fat:
Espresso
'N Cream low fat ice cream.
Beverages: Baskin Robbins offers a variety of frozen drinks such as Bold
Breezes in a variety of flavors such as Strawberry Citrus, with Wild Mango,
and Kiwi. Blasts, is another kind of beverages is offered by Baskin Robbins
with Coffee, Cappuccino, Chocolate and Mocha flavors. In addition to that,
Shakes and Malts beverages are available, with the customer choice of ice
cream (Something to drink).
Cakes: Baskin Robbins offers cakes with in different designs, sizes, flavors
and different special occasions such as birthdays, holidays, graduation,
marriage and new born baby ("Something to Share") (Baskin Robbins,
2009).
2. New Product Description: Berry Nutty Banana
The new production description of Baskin Robbins called the Berry Nutty
Banana, with the mixtures of nutty combination of banana ice cream and
berry flavors. Baskin Robbins is the king in ice cream market; they created
a unique positioning for business brand, by introducing interesting new
flavors (Baskin & Robbins, 2011). Moreover, Baskin Robbins allows

customers to sample as many flavors customers wants prior to making the

final choice, is a good gesture for the ice cream industry.
3. SWOTT Analysis
A marketing mix plays a major role in Baskin Robbins SWOTT analysis,
most often controlled variables of the business, and incorporates together
to satisfy a target group. The marketing mix is what most marketing call
the 4 Ps of Baskin Robbins industries; the Product, Place, Price, and
Promotion. The three products of Baskin Robbins marketing mix such as
beverages, ice creams and cakes. The place of Baskin Robbins marketing
mix must consider, such as objectives, channel type, middlemen, and kinds
or locations of stores, transportation, storage, and managing or
coordinating channels. The prices of the marketing mix of Baskin Robbins
are medium to high compared with other ice-cream brands and nearly to
the competitors prices who is Haagen-Dazs of London Dairy. The
promotion part of the marketing mix involves telling target customers that
the right Product is available at the right Place, and at the right Price. The
SWOTT analysis for Baskin Robbins industries has been completed, by
Team B in order to identify the strengths, weaknesses, opportunities, and
threats of Baskin Robbins industries (Armstrong & Kotler, 2009).
a. Strengths
The first part of a SWOTT analysis is to review the companys strength.
The main strengths of Baskin Robbins are that it has many branches in the
United Arab Emerald and around 70 stores. The Exhibit 1.2 below
illustrates the Strength of Baskin Robbins ice cream industry (Baskin
Robbins, 2005). Baskin Robbins main competitor Haagen-Dazs of London
dairy have only seven branches and Haagen-Dazs do not have any branch
in the capital of Abu Dhabi.
Exhibit 1.2 illustrates the Strength of Baskin Robbins industry.
Strengths
1000 flavors of ice-cream include low fat and no sugar ice-cream.
Reasonable Prices with the quality of the product.

 Provide several services for different age groups.

- For children they offer birthday club.
- For people who are concerned about their health, Baskin Robbins provide
nutritional information and ingredients for all the products line.
b. Weakness
The second part of a SWOTT analysis is to examine a companys
weaknesses. Baskin Robbins weaknesses are things that Baskin could
change in order to improve its business. Exhibit 1.3 below illustrates the
Weakness of Baskin Robbins ice cream industry (Baskin Robbins, 2005).
One of the main weaknesses is the promotion campaigns because Baskin
uses the in-store promotion and it did not use other media types for
business promotions.
Exhibit 1.3 below illustrates the Weakness of Baskin Robbins industry.
Weaknesses
Not all Baskin Robbins branches offer the same products. For example,
Baskin Robbins branch in Abu Dhabi do not offer cakes, but in Al Kaldiyah
branch also in Abu Dhabi, offer it.
Not all Baskin Robbins offers the 1000 ice cream flavors.
Promotion campaigns; Baskin Robbins used one promotion tool, the
customer discount for birthday and in store promotions, which is not
enough to keep the market afloat.
c. Opportunities
The third part of a SWOTT analysis is the study of the companys
opportunities. The opportunities for Baskin Robbins are not under Baskins
control. The main opportunities for Baskin market improvement is the
increase number of population, tourists, working women and the customers
of Baskin Robbins. Exhibit 1.4 below illustrates the Opportunities of
Baskin Robbins ice cream industry (Baskin Robbins, 2005). Another
opportunity of Baskin Robbins in the United Arab Emerald is the largest

market for United States products among the other Gulf countries, and
Baskin Robbins is one of the United States franchise industries.
Exhibit 1.4 below illustrates the Opportunities of Baskin Robbins ice
cream industry
Opportunities
The number of tourists increases
Number of expatriates and singles expatriates has increased
The population of United Arab Emerald increased due to foreign labors.
The average incomes in United Arab Emerald are high earners.
In United Arab Emerald is the largest market for US businesses such
Baskin Robbins.
The Baskin Robbins has a multicultural environment providing a good
market of the ice cream industry.
Baskin Robbins in UAE is a free trade zone with not tariffs, licensing and
low import duties.
The rising number of young people who demands in fast food such as ice
creams.
The behavior in UAE of going out to eat ice creams has increased.
d. Trends
In this section includes global and local trends and analysis of each trend,
which could affect Baskin Robbins market industry. The awareness of
carbohydrates, calories and sugar increased and affected the dairys
industry including ice cream industries. In the last few years the ice cream
market showed a growth of two to three percents in 2004, and the market
decreased due to the health awareness. Exhibit 1.5 below illustrates the
Trends of Baskin Robbins ice cream industry (Baskin Robbins, 2005).
Despite the slow growth of ice cream market in 2004, many major brands
showed a respectable growth and other brands are Private Label, Nestle

Drumstick, Klondike, Dryers Eddys whole fruit, Popsicle, Weight Watchers

Smart Ones, Carvel, Silhouette, Haagen Dazs and Klondike Carb Smart
"Ice Cream Turnaround. Baskin Robbins is ready and able for such
awareness and needs to be aware of this trend since Haggen Dazs is a
strong competitor in United Arab Emerald.
Exhibit 1.5 below illustrates the Trends of Baskin Robbins ice cream
industry
Trends
The increased in the awareness of carbohydrates, calories and sugar
affected the ice cream industry
The ice cream industry has affected franchises in international and except
Haggen Dazs in United Arab Emerald locations.
Political violent in the Gulf countries such as Saudi Arabia and Qatar
affects the tourism industry in these regions.
Mad cow disease is a well known disease has affected cows worldwide
and the dairy products and ice cream industries.
e. Threats
The fourth part of a SWOTT analysis is the examination of the companys
threats. Baskin Robbins faces some threats that may affect Baskin Robbins
market such as new competitors Daagen-Hazs ice cream industries.
Exhibit 1.6 below illustrates the Treats of Baskin Robbins ice cream
industry (Baskin Robbins, 2005). Further, threats are the politics and this is
the United States actions in Iraq and Middle East region, most often affect;
the relationships between United Arab Emerald and the United States. The
following table below Exhibit 1.6 illustrates the Threats of Baskin Robbins
industry.
Threats
Customers may replace high quality and price of US products to low
prices such as Singapore, Malaysia, China and Italy.
Mad cow disease may threat the market of the ice cream industry.

 Low consumptions of ice cream per capita and throughout different

countries.
Political violent related acts in the Middle East, and Gulf regions may
affect bad image such tourism may decrease.
Ben & Jerrys is one of the European ice cream parlors, and plan to
operate business in the United Arab Emerald.
United States actions in Middle East, Iraq and Arab countries affect the
economy and trade relations as well.
4. Marketing Research
Marketing research plays two roles: to provide decision makers with data
concerning the effectiveness of current marketing efforts and to help
decision makers explore new opportunities in the workplace. Marketing
research has grown in importance because of managements focus on
customer satisfaction and retention. The Marketing Research process is
comprised of five steps; 1) Defining the problem; 2) Analyzing the situation;
3) Getting problem-specific data; 4) Interpreting the data; and 5) Solving
the problem (Perreault & McCarthy, 2005, p.217): The two main steps in
Marketing Research that should be done in order to identify the marketing
opportunities for Baskin Robbins business in the United States and in
global countries. The first step is to do the secondary research for existing
information about Baskins background and its mission. Second step, the
Marketing Researches is collecting information about the target market and
the marketing mix of Baskin Robbins. Further, the Consumer Analysis
searched all aspects of the market in order to develop a product or service,
and often help the company to capture the market shares includes
demographics, psychographics, purchase behavior, and geographical
consideration. The Industrial Analysis is a market strategy tool used by
businesses to determine if they want to enter a product or service market.
Competitors analysis is an essential component of corporate strategy.
Finally, Team B further addresses two important segmentation topics: the
criteria, and market analysis for effective segmentation. Differentiation and
Positioning Product are the most crucial parts and importance of marketing
strategy. A product life cycle stage as to any degree, in which is capable of
fulfilling customer needs includes; introduction, growth, maturity, and

decline. Information about the local and global ice cream of Baskin Robbins
industries information that should be collected in the secondary research
step.
a. Consumer Analysis
Consumer Analysis is a method by which marketing professional will
analyze the target of the Baskin Robbins clients in order to determine the
most advantageous course of action. Baskin Robbins industry can improve
both, the sales and profitability (Business Qandas, 2011). Consumer
Analysis searched all aspects of the market in order to develop a product or
service, and often help the company to capture the market shares. A lot of
consumer Analysis is to analysis the customer desire, need and satisfaction
(Business Qandas, 2011).
1) Demographics
Marketing researcher uses demographics to make a market plan or
marketing strategy. Baskin Robbins uses 7 types of Demographics: First,
type of demographics from different customers ages from 9 to 80 years
old. In the demographics offering different products or using different
marketing approaches for different age and family type. Although some 80year-olds require wheelchairs, others play tennis. Similarly, whereas some
50-year-old couples are sending their children off to college, others are just
beginning new families. Second type of demographics are the different
household Medium income levels, and the table below all household
income $46,326, dual earners household $67,348, per household member
$23,535.
Further, the third demographics incomes are the Gender and persons ages
25 years or older such as male with income of $39,403; females income of
$26,507; and both genders income of $32,140. Fourth demographics are
the Ethnicities with incomes; Asian incomes $57,518; White non-Hispanic
$48,977; Hispanics $34,241 and Blacks $30,134. Fifth demographics are
the Professional Occupations and Technical such as manager, officials, and
proprietors; clerical; sales, craftspeople; supervisors; farmers; retired;
bankers, students; homemakers, and unemployed. Sixth demographics are
the Education such as Grade school or less; some high school; high school
graduate; some college; college graduate. Seventh demographics are the

types of Families such as young, married, no children; married with

children; single parents, unmarried couples; older, no children under 18;
older, single.
The Baskin Robbins target market for ice creams stores is families with
incomes under $30,000. For example, when Family Dollar real-estate
experts scout locations for new stores, they look for lower-middle-class
neighborhoods where people wear less-expensive shoes and drive old cars
that drip a lot of oil. Baskin Robbins low-income strategies, the low price of
ice creams stores are now the fastest-growing industries in the nation
(Kerin, Hartley & Redeluis, 2009). Exhibit 1.7 below illustrate the following;
age 9-80 years old; Medium income, both genders with household income;
both Genders, and age 25 or Older with Earnings; Income by Ethnicities;
Professional Occupations and Technical; Education and Family types
customers of Baskin Robbins ice cream industries (Baskin Robbins, 2009).
Baskin Robbins has been so successful that discounters retailers are
taking notice. Although, some experts predict that, to meet the low price of
Baskin Robbins ice cream threat, the competitor Daagen-Hazs will
eventually buy one of these chains or start one of its own.
Exhibit 1.7. below illustrates the following; Ages 9-80 years old; Medium
income, both genders with household income; Genders and persons, age
25 or Older with Earnings; Income by Ethnicities; Professional Occupations
and Technical; Education and Family types customers of Baskin Robbins
ice cream industries.
Medium Income
All
households
Dual earner
households
Per household
member

$ 46,326
$ 67,348
$ 23,535
Both Genders, and age 25 or Older with Earnings
Males
Females
Both sexes
$ 39,403
$ 26,507
$ 32,140
Income by Ethnicities
Asian
White,
non-Hispanic
Hispanic
Black
$ 57,518
$ 48,977
$ 34,241
$ 30,134
Professional Occupations and Technical

Manager, officials, and proprietors; clerical; sales, craftspeople;

supervisors; farmers; retired; bankers, students; homemakers, and
unemployed.
Education
Grade school or less; some high school; high school graduate; some
college; college graduate.
Family Types
Young, single; married, no children; married with children; single parents,
unmarried couples; older, married, no children under 18..
2) Psychographics
Perceived risk is the level of risk that a consumer has when purchasing a
product from a retailer. The most important purchase is to increase in
perceived risk and less perceived risk decrease on a purchases. Factors
that play a part in the perceived risk of purchasing a product are: the
function of the product, physical, social, psychological, financial and time
(Kerin, Hartley & Redeluis, 2009).
First, the motivation facts in purchasing Baskin-Robbins ice cream quality
of ice cream the consumer received when purchasing the ice cream.
Second, Attitudes/opinions- The attitude and opinion of different customers
purchasing the ice cream treat. For example, Baskin Robbins different
Psychographics customers such as social class, some lower class, working
class, middle class, upper middles, lower uppers, high class, and other
lifestyle, most often achievers, strivers, and survivors. Further, some
customers are gregarious, authoritarian, and ambitious. Baskin Robbins
offers a much lower price, whereas, a competitor price is much higher and
repeated customers returns to Baskin Robbins for price advantaged (Kerin,
Hartley & Redeluis, 2009). Baskin Robbins customer services are
courteous, quick and efficient manner in handling the customers orders,
are motivates to thrill customers, and lead multi-branding, enrich
stakeholders, and build powerful brands!(Our Values and Philosophy").
3. Purchase Behaviors

Purchase Behaviors is the decision processes and acts of people involved

in purchasing and using products. Purchase Behaviors refers to the buying
behavior of the ultimate consumer. A firm needs to analyze purchasing
behavior for: Buyers reactions to a firms marketing strategy has a great
impact on the firms success. The marketing concept stresses that a firm
should create a Marketing Mix that satisfies gives utility to customers,
therefore need to be analyze the what, where, when and how consumers
buy. Marketers can better predict how consumers will respond to marketing
strategies. Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution (4 Ps) of ideas, goods and
services to create exchanges with customers, most often satisfy individual
and organizational objectives (Kerin, Hartley & Redeluis, 2009). For
example, Baskin Robbins Marketing mix and Target markets are:
Marketing Mix; the Product is border lights, and new menu of 31 ice cream
flavors.
Price is the value pricing as with their other menu items. Promotion, are
coupons and
discounts advertisements. A place of Baskin Robbins has expanded
throughout the
world, and its points of access where you can by its products include the
shopping
malls. Baskin Robbins in United States and through the world with different
nationalities and cultures and whether they are female or male, young and
older
customers. The ages of Baskins target market range from 14 to 48 years
old.
The income of the Target Market is medium to high and from different
educational
levels. The marketing strategy of Baskin Robbins mainly concentrates on
the core

proposition that states I prefer Baskin Robbins because it is the only

youthful place
to share magical moments every day with friends and families.
4) Geographical Considerations
The Geographic Considerations of Baskin Robbins ice cream industries is
divided the market into different geographical units such as nations,
regions, states, counties, cities, or even neighborhoods. Exhibit 1.8 below
illustrates the Geographic Considerations of Baskin Robbins industries
throughout the hemispheres. Baskin Robbins may decide to operate in one
or a few geographical areas, or to operate in all areas but monitors the
geographical differences in needs and wants. Baskin Robbins today is
localizing their products, advertising, promotion, and sales efforts to fit the
needs of individual regions, cities, and even neighborhoods. (Baskin
Robbins, 2009). For example, one consumer products of Baskin Robbins is
the low-calorie ice cream snacks in neighborhoods near weight watchers
clinics.
Exhibit 1.8 Geographic Considerations of Baskin Robbins industries.
Geographic Considerations
World Regions
North America, Western Europe, Middle East, Pacific Rim, China, India,
Canada, Mxico
Country Regions
Pacific, Mountain, West North Central, West South Central, East, North
Central, East South Central, South Atlantic, Middle Atlantic, New England
City or Metro Size Under
5,000;5,00020,000;20,00050,000;50,000100,000;
100,000250,000;250,000500,000;500,0001,000,000;
1,000,0004,000,000;over 4,000,000

Density
Urban, Suburban, Ex-urban, and Rural areas.
Climate
Northern and Southern
b. Industrial Analysis
Industrial Analysis is a market strategy tool used by businesses to
determine if they want to enter a product or service market(Ehow, 2011,
p.1). Company analyzes different aspect of the industry to determine,
whether or not the product or service will profitable in the market such as
Baskin Robbins.
1) Competitor Analysis
A competitor analysis is an important requirement in any business plan
because it (a) reveals the firm's competitive position in the "market space,
(b) assists businesses to develop strategies to be competitive, and (c)
investors and other readers of the business plan will expect it. Exhibit 1.9
below illustrates the Competitor Analysis percentages of Baskin Robbins
industries; Sweet Dairy 8%; Fantasy Parlor 14%; Ice Cream Treat 19%;
Others 25%, and Sweet & Delicious 34%. If business ignore or minimize
the impact competition will have on the business prospects, and Baskin
Robbins have an unrealistic business plan. Baskin Robbins indicates there
is not a volume based business, but accepts the fact that there is an
indirect competition from domestic brands and other local parlors. Further,
to check at the competitors in the region of India for Baskin Robbins; For
example the Hindustan Unilever, which owned 51% percent, and has a
14% percent share of 100-million litres and Revenue 1,200 per annum in
the ice cream market (Baskin Robbins, 2009). Although this makes the
second largest in Indias regions. The growth target for the year is 20%
percent, and the market growth at 15 percent per annum in the last five
years.
In Sweet Diary, which owned 8% percent market shares and the amount of
$9.000 has fanned out from its stronghold of North India to the Eastern and
Western parts of the count in the last two years. Its strength is the 4,000

pushcarts out on the streets of the county at all times. As a large category
of consumers buy ice cream on impulse, this fleet has helped Sweet Diary
grows 35 percent last summer. Sweet Diary, by the way, has developed a
strong portfolio of local flavors, which could work well in this economic
markets; Fantasy Parlor is the third largest player in the ice cream market
with a market shares owned 14% in the amount of $15,000, and strong
player in western India growth plans; The three competitor are still leading
in high aggressive market plans, the Ice Cream Treats is 19% amount of
$21,000; Others, 25% amount is $28,000 and Sweet Delicious is 34%
amount of $38,000 (Baskin Robbins, 2009).
The modern trade now contributes to 15 percent of the combined revenues
and aggressively growing to 20% percent in the upcoming years. Baskin
Robbins has established it leadership in the premium ice cream category in
the modern trade channel. The Sweet and Delicious to enter the segment
this year with its Scooping parlors where it serves sundaes, thick shakes
and exclusive range of ice cream. Sweet and Delicious plans to have 1,000
Franchises, by the end of the financial year, and from the current 250, and
thereon add another 1,000 Franchises every year for the next five years.
Sweet and Delicious expects retails to contribute to 20 percent ice cream
revenue in the next three to five years.
Exhibit 1.9 below illustrates the Competitor Analysis percentages.
5. Segmentation
Segmentation helps organizations identify the most lucrative opportunities.
Most marketers use segmentation to narrow down a broad set of
opportunities to a specific target market and market strategy. Market
segmentation is useful in deciding the way in which a marketer will promote
his/her product or service (Kerin, Hartley & Redeluis, 2009). For example,
Baskin Robbins would be willing to sale the newest flavor Berry Nutty
Banana as opposed to a new customer who has not yet experienced the
new product flavor.
With over 6,500 globally, Berry Nutty Banana new flavor is sure to be a
success with the right criteria and target markets. Within a given target
industry and customer size, the company can segment by purchase
approaches and criteria. Team B, will further address two important

segmentation topics: criteria, and market

segmentation (Kerin, Hartley & Redeluis, 2009).

analysis

for

effective

a. Criteria
Baskin Robbins differences to promote new flavor such as Berry Nutty
Banana, most often not all brand differences are meaningful or worthwhile,
whereas not every difference makes a good differentiator. Moreover, each
difference has the potential to create company costs as well as customer
benefits (Kerin, Hartley & Redeluis, 2009). A difference is worth
establishing to the extent that it satisfies the following Baskin Robbins
criterias: a). Important: The difference delivers a highly valued benefit to
target buyers; b). Distinctive: Competitors do not offer the difference, or
Baskin Robbins can offer it in a more distinctive way; c). Superior: the
difference is superior to other ways that customers might obtain the same
benefit; d). Communicable: the difference is communicable and visible to
buyers; d). Preemptive: Competitors cannot easily duplicate the difference;
e). Affordable: Buyers can afford to easily copy the difference; f). Profitable:
The Baskin Robbins can introduce the difference profitably (Cannon,
McCarthy, & Perrault, 2009).
b. Target Market
The target market of Baskin Robbins here in the United States, and
international countries from different nationalities and cultures and whether
they are female or male. The Target Market of Baskins are from ages 9 to
80 years old; Medium income, both genders with household income;
Genders and persons, age 25 or Older with Earnings; Income by
Ethnicities; Professional Occupations and Technical; Education and Family
types customers of Baskin Robbins ice cream industries (Baskin Robbins,
2009). The income of the target market is medium to high and from
different educational levels. For example, Baskin Robbins target market for
ice creams stores is families with incomes under $30,000.
Baskin Robbins search for lower-middle-class neighborhoods where people
wear less-expensive shoes and drive old cars. Baskin Robbins low-income
strategies, the low price of ice creams stores are now the fastest-growing
industries in the nation (Kerin, Hartley & Redeluis, 2009).

Baskin Robbins has been so successful that discounters retailers are

taking notice. Although, some experts predict that, to meet the low price of
Baskin Robbins ice cream threat, the competitor Haagen-Dazs will
eventually buy one of these chains or start one of its own ice cream parlors.
The marketing strategy is mainly concentrates on the core proposition,
because it is the only youthful place to share magical moments every day
with friends and family while being spoil with an unparalleled choice of 31
ice cream flavors. Working backwards from an available target date is a
combined target market approach. Using the target date as a goal, Berry
Nutty Banana can be in stores ready for distribution in time for warm spring
days, and hot summer evenings (Kerin, Hartley & Redeluis, 2009).
6. Differentiation and Positioning Product
The purpose of Differentiation and Positioning Product are the most crucial
parts and importance of marketing strategy. The Business Dictionary
defines differentiation to form the distinct different, and or in between
(Business Dictionary, 2011, p. 1). Further, describes Positioning as
appropriate place, the marketing segmentation, and target market
(Business Dictionary, 2011, p. 1). The four Ps plays a role of the
marketing, most often known the marketing mix, are promotions, price
placement and product. This is the basic model for most marketing plans, is
also used for differentiation and positioning (Kerin, Hartley & Redeluis,
2009). Individual element of the marketing mix and each Ps offers
opportunity for Differentiation Product and Positioning. Baskin Robbins
Differentiation search to create a product more attractive, by striking
differently and unique attributes with all other product rivals (Kerin, Hartley
& Redeluis, 2009).
Although, the marketing process, most often showcases the differentiation
between products. For example, Client A enjoy inc cream with walnut and
dry dates but do not care for high sugar content, whereas Client B enjoy
walnuts with chocolate flavored ice cream, and not to desirable for the
costs of other brand of sugar free ice cream (Kerin, Hartley & Redeluis,
2009). Baskin Robbins differentiation is often used when describing the
individual product, and positioning, most often used when describing the
competitor brand of Haagen Dazs products. Baskin Robbins has three
Differentiation Products; the Beverages, Ice Creams and Cakes. The

following products illustrate Baskin Robbins contrast to Haagen Dazs

competitors ice cream industry (Baskin Robbins, 2005).
Baskin Robbins: ice creams has over 1,000 different ice-cream flavors to
satisfy the
costumers wants and meet the 31 flavors concept. Ice Creams are new
Flavors: Berry Nutty Banana is a banana flavored ice cream with ribbons of
berry jam with just the right amount of crushed almonds. Permanent
Flavors: such as Cherries Jubilee, Vanilla, Chocolate, Berry Nutty Banana,
Strawberry and other fruits flavors.
Baskin Robbins Seasonal Flavors: include Quarterback Crunch, Pumpkin
Pie and German Chocolate Cake. Regional Flavors: such as Orange
Sherbet, Berries 'n Banana (No Sugar Added) Includes; the Black Walnut,
the Creole Cream Cheese, and the Lemon Custard. Added: Chocolate,
Chocolate Chip, and Pineapple Coconut. Low fat: Espresso 'N Cream low
fat ice cream (Baskin Robbins, 2005).
Haagen Dazs competitor ice cream products has 27 classic flavors they are
banana split, butter pecan, caramel cone, cherry vanilla, chocolate,
chocolate chip cookie dough, chocolate chip, chocolate peanut butter,
coffee, cookies & cream, crme brulee, dark chocolate, dulce de leche,
green tea, java chip, mango, mint chip, pineapple coconut, pistachio, rocky
road, rum raisin, strawberry, vanilla bean, vanilla chocolate chip, vanilla
almond, and while chocolate raspberry truffle (Haagen Dazs, 2010).
Beverages: Baskin Robbins offers a variety of frozen beverage such as
Bold Breezes in a variety of flavors such as Strawberry Citrus, with Wild
Mango, and Kiwi. Blasts, is another kind of beverages is offered by Baskin
Robbins with Coffee, Cappuccino, Chocolate and Mocha flavors. In
addition to that, Shakes and Malts beverages are available, with the
customer choice of ice cream (Something to drink). Whereas, frozen
beverages savor a shake, fantasize with a float, and slip into a Haagen
Dazs smoothie or a sorbet sipper with frozen beverage (Haagen Dazs,
2010). Whatever customer pleasure, thirst quenching delight awaits
customer at the Haagen Dazs shop.

Cakes: Baskin Robbins offers different cakes such as designs, sizes,

variety of flavors and special occasions such as birthdays, holidays,
graduation, and marriage. ("Something to Share") (Baskin Robbins, 2009).
Haagen Dazs shop offers a variety of indulgent ice cream cakes,
customizable for any occasion. Each one is specially created with customer
choice of all natural Haagen Dazs ice cream flavors. Customers choose
from a range of sizes and design to suit customer event and number of
guests. To suit customer from birthdays to anniversaries and more, Haagen
Dazs ice cream cakes turn any event into an elegant celebration (Haagen
Dazs, 2010). The Haagen Dazs ice cream cake has 7 flavors for customers
selections such as caramel drizzle, chocolate cookie crunch, chocolate
drizzle, chocolate heart, cookies and cream, double chocolate curl and
mocha torte.
Packaging of Baskin Robbins ice cream in cups,cones, waffle bowls,
shakes, roll cakes, prepacked icecreams, hand- packed ice creams,
novelties and in snack type. Packaging make it easy for customers to
identify the products. Whereas, Haagen Dazs brand packing, inspired by
customers. A modern take on Haagen Dazs classic look, design is fresh,
yet familiar. Haagen Dazs product, customer can find the flavors by its
vibrant colors, and vivid imagery looks gives customers everything
customer wants from inside and outside (Haagen Dazs, 2010).
Baskin Robbins Positioning Product or service business is defined by: a)
marketing segmentation, and b) target market. Marketing segmentation is
dividing a large market into sub-market needs or product preferences
(Kerin, Hartley & Redeluis, 2009). Moreover, marketing segmentation is
similar to consumer differences with possibility or customer buying
behavior. It may be true for more producing profit, most often to create
below average market segments inside a target segment (Kerin, Hartley &
Redeluis, 2009). Baskin Robbins Target Marketing firmly based, in which
consumer needs and wants such as increase profits, to identify consumer
group, and the cause consumer purchase (Kerin, Hartley & Redeluis,
2009).
7. Product Life Cycle Stage

Team B defined a product life cycle stage as to any degree, in which is

capable of fulfilling customer needs. Customer needs for example, cars and
washing machines, as well as services such as insurance, the health care
and banking. Baskin Robbins should manage their products carefully
overtime to ensure that business deliver products that continue to meet
customer wants (Kerin, Hartley & Redeluis, 2009). The stages through
which individual products develop overtime are called commonly known as
the Product Life Cycle of Baskin Robbins. The classic Product Life Cycle
has four stages, and illustrated below; a) introduction; b) growth; c)
maturity, and d) decline (Kerin, Hartley & Redeluis, 2009).
1) Introduction Stage
Baskin Robbins Marketing Plan Phase Two in the Introduction Stage,
market magnitude and development is slightly increases. It may be true
that ample research and unit cost, most often to acquire in obtaining
product at this stage (Kerin, Hartley & Redeluis, 2009). It is improbable that
Baskin Robbins will make revenues on products at the beginning stage.
Products at the Introduction Stage, most often by carefully monitoring the
business product; to ensure products start to increase. Business with
hopeless situations can select alternatives, by withdrawing, or to abolish of
the product (Kerin, Hartley & Redeluis, 2009).
2) Growth Stage
Baskin Robbins Growth Stage is characterized the extreme business
growth in profits and gross sales. Profits upward moved because an
addition in output produced in an entitys economy of scale, and possibly
better prices (Kerin, Hartley & Redeluis, 2009). Competitors may be in the
market as others wait to see whether the mass market will adopt the
product. At this stage is Baskin Robbins most critical time to focus on
product positioning.
3) Maturity Stage
The Maturity Stage is, perhaps, the most distinct stage for all markets. It
is in this stage that market competition is most intense as Baskin Robbins
battle to sustain the market shares. The marketing stage is the time when
most profit is earned by the marketer entities (Kerin, Hartley & Redeluis,

2009). Baskin Robbins expense on research and expansion is likely to limit

the product alteration, advancement, and to make better production
intended purposes, and quality.
4) Decline Stage
In the Decline Stage, the market is becoming less, reducing in size, and
the majority amount of revenues can be shared, by other remaining
competitors. Baskin Robbins needs to manage cautiously of the status
products at this stage (Kerin, Hartley & Redeluis, 2009). Exhibit 1.10 below
shows descriptions of the Product Life Cycle presently at different stages.
Despite, the possibilities to remove a few production cost, or to move
around production to a cheaper market location. Further, Baskin Robbins
status on whether the product on decline stage remains profitable, and a
company options may decide to disband the existing product.
Exhibit 1.10 Product Life Cycle presently at different stages.
INTRODUCTION GROWTH MATURITY DECLINE
Mobile phone DVD player Personal Computer Typewriter
E-conference E-mail Fax Handwritten letter
Personal Identity card Smart card Credit Card Check book
8. Marketing Mix
No introductory discussion of marketing is complete without discussing the
marketing mix. The marketing mix is what most marketing people call the 4
Ps: Product, Price, Place, and Promotion. A marketing mix is the
controlled variables the company puts together to satisfy a target group
(Perreault, Cannon, and McCarthy, 2009). It is important to note that a
change in one P may cause a change in another.
a. Product and Service
The Baskin Robbins Product and Service offer a variety of different ice
cream flavors. All ice cream flavors can be purchased by scoop in Baskin
Robbins stores. Baskin Robbins offers pre-packing ice cream with different
flavors and sizes for the customers to keep ("Something to eat "). Baskin

Robbins has three main products; a) Ice creams; b) Beverages; and c)

Cakes. The following lines explained each product in details:
Ice Cream: Baskin Robbins has over 1,000 different ice-cream flavors to
satisfy the costumers wants and meet the 31 flavors concept. Ice Creams
are divided as the following:
Beverages: Baskin Robbins offers a variety of frozen drinks such as Bold
Breezes, which come with many flavors like Strawberry Citrus, Wild Mango,
and Kiwi. Blasts, is another kind of beverages that is offered by Baskin
Robbins with Coffee, Cappuccino, Chocolate and Mocha flavors. In
addition to that, Shakes and Malts beverages are available, with the
customer choice of ice cream (Something to drink).
Cakes: Baskin Robbins offers cakes with in different designs, sizes, and
flavors and for different special occasions like birthdays, holidays,
graduation, marriage and new baby born ("Something to Share") (Baskin
Robbins, 2009).
The product and service of Baskin Robbins are offers to the customers, the
full nutrition facts and ingredient information in the packaging of each
product for health issues. Furthermore, when customers want to order ice
cream cake for any occasions, customers can have the opportunity to
choose from the default choice or create choice of designs (Something to
celebrate) (Baskin Robbins, 2009).
1) Good, Service, and Idea Types
Baskin Robbins sales of goods and services are frequently connected, i.e.
a product will usually incorporate a tangible component (good) and an
intangible component. Good, Service and idea type is a neighborhood ice
cream shop with a passion and the irresistible treats, smiles and fun for the
entire neighborhood. Further, Baskin Robbins type of idea is to give the
customers the opportunity to choose from the default choice or create the
specific designs of choices.
2) Features
Baskin Robbins add new features, the Baskin-Robbins Web site,
www.baskinrobbins.com, is introducing fun ways to help celebrate love.

The new features Web site launched in December 2007, and continues to
introduce new features in 2008, including customizable eCards available
January 16, 2008 and birthday promotions (Baskin Robbins, 2009). BaskinRobbins eCards are just as sweet as ice cream, the cards provide a unique
and special way to say I love you on Valentines Day or any day of the
year. Baskin-Robbins eCards are customizable with fun graphics and
personal sayings that will leave your sweetheart swooning.
Baskin Robbins is different from the competitor, of Haagen-Dazs of London
dairy does not offer eCards or birthday promotions. Whereas, Baskin
Robbins has a special promotion offered the Birthday Club. This is a way to
receive free ice cream, and special offers coupons. As a birthday club
member is able to get a sneak peeks at new flavors and other treats.
Baskin Robbins set itself from the competition by introducing the 31 flavors,
and customers can choose a new flavor every day.
3) Identification
Baskin Robbins identification of ice cream brand has more than 6,000
stores in 35 countries and has more than 65 years of experience in serving
ice cream to the public. They participate in the markets all across the
United States in single stores and small networks. Baskin Robbins has
98% brand awareness. The slogan was created in 1954 to show that
Baskin Robbins has 31 flavors, that slogan is still a part of the companys
brand awareness and in recognized by people all over the world.
Baskin Robbins is the king of ice cream marketing; they created a unique
positioning for the brand by introducing interesting new flavors. They have
more than thousand flavors in the library and 31 different flavors in every
store. The packaging of Baskin Robbins ice cream is packaged in cups,
cones, waffle bowls, shakes, roll cakes, pre-packed ice creams, handpacked ice cream, novelties, and snack types of packaging. Baskin
Robbins has standard labeling in the labels are very attractive colors such
as brown and pink. In all of the labeling customers will see the letters B
and R in big font and in bold face (Baskin Robbins, 2009).
4) Production method

Baskin Robbins Production method uses the mass selling in

communicating with large numbers of potential customers at the same
time. Its less flexible than personal selling, but when the target market is
large and scattered, mass selling can be less expensive. Added, Baskin
Robbins advertising is any paid form of non-personal presentation of ideas,
goods, or services. It includes the use of traditional media like magazines,
newspapers, and TV, signs, and direct mail as well as new media such as
the Internet (Baskin Robbins, 2009).
5) Delivery of Service
Baskin Robbins is an ice cream shop the delivery of service is the customer
orders their item or items off the menu and their order is made to their
wants and needs. The final product is delivered to the customer through
Baskin Robbins design cups, bowls and labels if the Baskin Robbins logo.
The many different types of products are produced in factories all around
the United States, then delivered to your locate Baskin Robbins. Baskin
Robbins is a franchise store. Franchiser is usually a manufacturer who sells
a product to the franchise dealer or franchisee. Franchisees are granted
the right to distribute the manufacturers product within a specified area
using the manufactures name such as Baskin Robbins (Baskin Robbins,
2009)
Exhibits 1-10 below illustrate the price comparisons of Baskin Robbins and
competitor Haagen Dazs
Baskin Robbins Ice Cream Industry
Product Price
Small scoop Ice-Cream 5
Medium scoop Ice-Cream 7
Large scoop Ice-Cream 10
Beverages small size 13
Beverages medium size 16
Cake small size 72

Cake Big size 125

Additional charge for the extra dressing
Haagen Dazs of London Dairy Ice Cream
Product Price
One scoop 9
Beverages 19
Cake per slice 19
Cake big size 125
Additional charge for the extra dressing
It is clear from the tables above, that Baskin Robbinss prices are a little bit
lower than Haagen-Dazs which means that Baskin Robbins has opportunity
to be consumed more than Haagen-Dazs brand especially both are ice
cream parlors. Baskin Robbins competitor the Haagen-Dazs has nearly the
same products and services, but Baskin Robbins is well known and
popularity image (Baskin Robbins, 2005). For example, Baskin Robbins
has 20 stores in Abu Dhabi compared with Haagen-Dazs who dont have
any branch in Abu-Dhabi; most often make Baskin Robbins easy for the
customers in the capital to have it (Baskin Robbins, 2005).
1. Pricing Strategy
Baskin Robbins Pricing Strategy to be to develop at marketing strategy
with marketing analysis, segmentation, targeting, and positioning. Baskin
Robbins will define the product, distribution and promotional tactics that
help determine the pricing of the products and service the will help Baskin
Robbins stay competitive. Baskin Robbins will have to understand how
quantity demanded varies with price, and understand the cost, which
includes fix and variable cost that are associated with the product (Baskin
Robbins, 2009). Baskin Robbins needs to understand the environmental
factors that affected the business, such as competitor and legal constraints
and city ordinances. Baskin Robbins will have to set the price by
determining the above factors.

a) Profit Oriented
Profit orientation sets a specific level of profit as an objective. This is
usually an amount stated in a percentage that a company will make in
profit. Baskin Robbins needs to take the approach to profit-maximize its
potential profit. We need to keep the right price so that everyone is buying
our product. If the price is too high then we will have only the people that
can afford the product purchasing the product (Baskin Robbins, 2009). Low
pricing can expand the market and result in increase in sales and profit.
b) Sales Oriented
This seeks some level of units sales, dollar sales, or share of market
without referring to profit (Perreault, Cannon and McCarthy, 2009).
Although, Baskin-Robbins sales are increasing that its making a profit.
Baskin-Robbins will have to watch the growth of the company to protect
itself from going bankrupt despite an increase in sales. An increase in sales
doesnt always state that you are at the right price on your product to
produce a profit you can be increase your sales, but your costs have
increased to a rate that is larger than the increase in sales. As the company
sales growth, one important factor will be to make sure that your price
strategy is set at the right price. This crucial factor will help make the
business successful and profitable.
c) Status Quo
Status quo is when satisfied with the current market share and the profit
(Perreault, Cannon, and McCarthy, 2009). This is a good way to want to
stabilize the price or meet competition, or even avoids competition. Status
quo pricing is a common strategy when the market is not growing. A good
way to achieve the right pricing is to set pricing policies to help control our
pricing in the store. An administered pricing policy would help to set a
consciously set price. So if the price of dairy product would in increase we
would have a set price to keep our price consistent. An administered policy
would help hold the price at a long period of time.
b. Place

Place is also known as channel, distribution, or intermediary. It is the

mechanism through which goods and service are moved from the
manufacturer to the consumer. Baskin Robbins formidable distribution
network comprises of 300 stock keeping units, 46 sales offices, 3,000
distributors, 100,000 retailers with refrigerators, and 18,000 strong cold
chain, and 5000,000 non-refrigerated retail outlets to reach their
consumers. Baskin Robbins has their own privilege to selecting their
locations; they usually target their place where there is high foot traffic,
such as malls areas. The place is the making of goods and services
available in the right quantities at the right locations, and at the right price.
Further, Baskin Robbins determines the place of firm must consider, such
as objectives, channel distributions, locations of stores, transportation,
storage (Perreault, Cannon, & McCarthy, 2009).
1) Channel of Distribution Manufacturer, Wholesaler, Retailer
The nature of Distribution Channels most businesses use third parties or
intermediaries to bring their products to market. A Channel of Distribution is
the whole series of marketing intermediaries who join together to transport
and store goods in their path from producers to consumers. Manufacturers
dont always need marketing intermediaries to sell their goods to consumer
and industrial markets. A Wholesaler is a marketing intermediary that sells
to other organizations. A Retailer is an organization that sells to ultimate
consumers. Channel Intermediaries Retailers; a) retailers will have a much
stronger personal relationship with the consumer; b) the retailer will hold
several other brands and products. A consumer will expect to be exposed
to many products; c) retailers will often offer credit to the customer e.g.
electrical wholesalers, or travel agents; d) products and services are
promoted and merchandised by the retailer; e) the retailer will give the final
selling price to the product. Baskin Robbins describe a "distribution
channel" which can be defined as "all the organizations through which a
product must pass between its point of production and consumption"
(Perreault, Cannon, and McCarthy, 2009).
The main function of a distribution channel is to provide a link between
production and consumption. The Exhibits 1-11 below illustrate the channel
level of Baskin Robbins ice cream industry Organizations that form any
particular distribution channel perform many key functions: a) Information;

gathering and distributing market search and intelligence is important for

marketing planning; b) Promotion; developing and spreading
communication is about offers; c) Contact; finding and communicating with
all prospective customers; d) Matching; adjusting the offer to fit a buyers
needs, including grading, assembling and packaging; e) Negotiation;
reaching agreement on price and other terms of the offer; f) Physical
distribution; Transporting and storing goods; g) Financing; acquiring and
using funds to cover the cost of the distribution channel such as stocks; h)
Risk taking; assuming some commercial risks by operating the channel.
All of these functions need to be undertaken in any business market. The
question is who performs them and how many levels there need to be in
the distribution channel in order to make it cost effective (Perreault,
Cannon, and McCarthy, 2009). Each layer of marketing intermediaries that
performs some work in bringing the product to its final buyer is a "channel
level".
Exhibits 1-11 show the Distribution Channel, of manufacturer, wholesaler,
retailer, and consumer level.
In the Exhibit above, Channel 1 is called a "direct-marketing" channel,
since it has no intermediary levels. In this case the manufacturer sells
directly to customers. An example of a direct marketing channel would be a
factory outlet store (Perreault, Cannon, and McCarthy, 2009). Many holiday
companies also market direct to consumers, bypassing a traditional retail
intermediary - the travel agent. The remaining channels are "indirectmarketing channels". Channel 2 contains one intermediary.
In consumer markets, this is typically a retailer. The consumer electrical
goods market in the United States typical of this arrangement whereby
producers such as Sony, Panasonic, Canon etc. sell their goods directly to
large retailers such as Wal Mart, Sears and Home Depot which then sell
the goods to the final consumers. Channel 3 contains two intermediary
levels - a wholesaler and a retailer. A wholesaler typically buys and stores
large quantities of several products goods and then breaks into the bulk
deliveries to supply retailers with smaller quantities. For small retailers with
limited order quantities, the use of wholesalers makes economic sense.
This arrangement tends to work best where the retail channel is

fragmented - i.e. not dominated by a small number of large, powerful

retailers who have an incentive to cut out the wholesaler. A good example
of this channel arrangement in the United States is the distribution of drugs
(Perreault, Cannon, and McCarthy, 2009).
2) Product Location Availability
The marketing mix is an important set of parameters that can be adjusted
to create an ideal marketing strategy. Every Product Location Availability
has a unique set of marketing needs which can be broadly placed into four
categories: product, price, place, and promotion. The Baskin Robbins
Product Location Availability has been able to use a wide range of
advertising mediums to advance their products availability to public. As with
any company, Baskin Robbins has adjusted some aspects of the marketing
mix more drastically than others. Baskin Robbins industry has unique
needs will ultimately influence the decisions of the ice cream industry in its
marketing strategy. Baskin Robbins refers to the availability of a product in
a location or geographical region. Some products are available worldwide,
whereas Haagen Dazs ice cream can only be purchased in a very specific
region. Despite, competitor products are available only through an
individual store front of Haagen Dazs ice cream can be purchased in a
different locations, but product availability is limited (Perreault, Cannon, and
McCarthy, 2009).
The internet has greatly expanded the visibility of Baskin Robbins many
products availability, by allowing customers to place orders over the web.
Baskin Robbins has recognized the values of the internet has in marketing,
and have produced websites that help sold their products. A Baskin
Robbins store can amplify their customer base with a relatively low
franchise investment, and by promoting their products availability over the
internet. Baskin Robbins has created domestic and global strategies for
product availability (Baskin Robbins, 2009). Baskin Robbins ice cream
products can be purchased in a wide variety of locations that include both
physical and virtual locations. In general, greater access to a product will
increase sales volume; however exclusivity can be beneficial and increase
the perceived quality of a Baskin Robbins ice cream product.
3) Physical distribution/location of facilities/modes of transportation

The physical distribution Baskin Robbins indicates that all transporting,

storing, and product handling activities of a business and a whole channel
system should be coordinated as one system that seeks to minimize the
cost of distribution for a given customer service level. Both, the lower costs
and excellent service help to increase customer value. This seems like
common sense, but until recently most companies treated physical
distribution functions as separate and unrelated activities. Within a Baskin
Robbins industry, responsibility for different logistics activities was spread
among various departments production, shipping, sales, warehousing, and
purchasing. Baskin Robbins industries Physical Distribution is located in
United States and throughout the hemispheres geographical area that
includes both physical and virtual locations of facilities.
Modes of transportation are technological solutions that used a
fundamentally different vehicles, infrastructure and operations (Perreault,
Cannon, and McCarthy, 2009). Exhibit 1-12 shows that different modes of
transportation have different strengths and weaknesses. Transport or
transportation is the movement of goods and peoples from one location to
another. Transport is performed by various modes, such as truck, rail, air,
water, and pipelines are:
Transport by Truck is an identifiable route way of path between two or
more places. Trucks are typically smoothed paved otherwise prepared to
allow easy travel. The advantages and disadvantages are: a) advantages it
provide high flexibility, serve as initial and final stage of freight transport,
suitable for short and medium distances, and most commonly used mode
of transportation, and b) disadvantage low capacity, high energy and area
use, noise and air pollution, and cause of road accidents. Rail transport is
where train runs along a two parallel steel rails, known as a railway of
railroad. Propulsion is commonly provided by a locomotive that hauls a
series of unpowered cars that can carry passengers or freight.
Railed vehicles move with much less friction than rubber tires on paved
roads, making trains more energy efficient. The advantages and
disadvantages are a) advantages rail is fast mode of transportation,
suitable for long distances, economical medium of transportation, transport
of heavy goods and energy efficient, b) rail disadvantages requires special

infrastructure, chances of accidents are high, require high cost and not
flexible mode of transportation.
Air transport is a fixed wing aircraft, commonly called airplane, is a heavier
than aircraft where movement of the air in relation to the wings is use to
generate lift. The aircraft is the second fastest method of transport, after the
rocket. The Air advantages and disadvantages; a) advantages by air;
quick mean of transportation, suitable for long distances and suitable for
transport heavy goods, and b) disadvantages are; not suitable for short
distances, high cost, require special infrastructure, risky in a bad weather
condition, high repair and maintenance cost. Water transport is the process
of transport a watercraft, such as a barge, boat, ship or sailboat, over a
body of water, such sea, ocean, lake, canal and river. The Water
advantages and disadvantages are a) Water play a major role in the
international trade, effective method of transporting large quantities of nonperishable goods, and less costly than air transportation, and b)
disadvantages can cause accident, water pollution, and creating danger for
marine life, effected by weather conditions, high fuel consumption, and not
flexible (Perreault, Cannon, and McCarthy, 2009).
Pipeline transport is the transportation of goods through a pipe. Most
commonly, liquid and gases are sent, but pneumatic tubes that transport
solid capsules using compressed air have also been used. The Pipeline
transport advantages and disadvantages are: a) pipeline advantages
lowest cost of transportation, safety, reliability and minimum disruption of
multi-product handling, and flexibility, and b) pipelines can be the target of
vandalism, sabotage, or even terrorist attacks. In war, pipelines are often
the target of military attacks, as destruction of pipelines can seriously
disrupt enemy logistics (Perreault, Cannon, and McCarthy, 2009). The best
alternative should provide the level of service (for example, speed and
dependability) required at as low a cost as possible. Exhibit 1-12 below
shows that different modes of transportation have different strengths and
weaknesses.
4) Costs
In selecting a Physical Distribution system, the total cost approach involves
evaluating each possible PD system and identifying all of the costs of each

alternative. This approach uses the tools of cost accounting and

economics. Costs that otherwise might be ignored like inventory carrying
costs are considered. The possible costs of lost sales due to a lower
customer service level may also be considered. The following example
clarifies why the total cost approach is important. The cost of shipping a ton
of ice cream products by train averaged less than half the cost of airfreight
so the company assumed that rail was the best method (Perreault,
Cannon, and McCarthy, 2009).
Baskin Robbins did a more complete analysis. To their surprise, they found
the airfreight system was faster and cheaper. Exhibit 1-13 compares the
costs for the two distribution systems airplane and railroad. Because
shipping by train was slow, and had to keep a large inventory in a
warehouse to fill orders on time. The company was surprised at the extra
cost of carrying the inventory in transit. Baskin Robbins also found that the
cost of spoiled ice cream during shipment and storage in the warehouse
was much higher when they used rail shipping. In this case, total cost
analyses showed that airfreight, while more costly by itself, provided better
service than the conventional means and at a lower total distribution cost
(Perreault, Cannon, and McCarthy, 2009). The case also illustrates why it is
important to get beyond a focus on individual functional elements of PD
and instead consider the costs and service level of a whole system. This
broader focus should consider how the whole channel operates, not just
individual firms.
Exhibit 1-13 example shows of comparative costs of airplane versus rail
and Warehouse.
a) Production
Variable costs vary directly with the level of production. Total costs are the
sum of the fixed and variable costs for any given level of production.
Management wants to charge a price that will at least cover the total
production costs at a given level of production. The company must watch
its costs carefully. If it costs the company more than competitors to produce
and sell its product, the company will need to charge a higher price or
make less profit, putting it at a competitive disadvantage (Perreault,
Cannon, and McCarthy, 2009). Value analysis is an approach to cost

reduction in which components are studied carefully to determine if they

can be redesigned, standardized, or made by less costly methods of
production.
The accounting department prepares financial statements and keeps
detailed records of sales, costs, and cash flows (Perreault, Cannon, and
McCarthy, 2009). Operations reports on production schedules, shipments,
and inventories. The sales force reports on reseller reactions and
competitor activities, and marketing channel partners provide data on pointof-sale transactions. Regulation arises to ensure that firms take
responsibility for the social costs of their production or products.
b) Distribution
Distribution, whereas customer-value perceptions set the price ceiling,
costs set the floor for the price that the company can charge. Cost-based
pricing involved setting prices based on the costs for producing,
distributing, and selling the product plus a fair rate of return for its effort and
risk. A companys costs may be an important element in its pricing strategy.
Many companies, such as Southwest Airlines, Wal-Mart, and Dell, work to
become the low-cost producers in their industries. Companies with lower
costs can set lower prices that result in greater sales and profits Perreault,
Cannon, and McCarthy, 2009).
c) Overhead
The Overhead types of costs a companys costs take two forms, fixed and
variable. Fixed costs (also known as overhead) are costs that do not vary
with production or sales level. For example, a company must pay each
months bills for rent, heat, interest, and executive salaries, whatever the
companys output (Perreault, Cannon, and McCarthy, 2009).
d) Sales
Sales profits can be improved by increasing sales or reducing costs. Sales
can be increased by improving the companys share of domestic and
international markets. These goals then become the companys current
marketing objectives. Marketing strategies and programs must be
developed to support these marketing objectives. To increase the market

share, Baskin Robbins might increase its products availability and

promotion in existing markets (Perreault, Cannon, and McCarthy, 2009).
Marketing managers must watch supply availability supply shortages or
delays, labor strikes, and other events can cost sales in the short run and
damage customer satisfaction in the long run. Marketing managers also
monitor the price trends of their key inputs. Rising supply costs may force
price increases that can harm the companys sales volume.
e) Marketing
In the Marketing break-even pricing such as target profit pricing; setting
price to break even on the costs of making and marketing a product; or
setting price to make a target profit. Another cost-oriented pricing approach
is break-even pricing, or a variation called target profit pricing. The firm tries
to determine the price at which it will break even or make the target profit it
is seeking.
Target pricing uses the concept of a break-even chart, which shows the
total cost and total revenue expected at different sales volume levels. Fixed
costs are $6 million regardless of sales volume, and variable costs are $5
per unit. Variable costs are added to fixed costs to form total costs, which
rise with volume (Perreault, Cannon, and McCarthy, 2009). The slope of the
total revenue curve reflects the price. Here, the price is $15 (for example,
the companys revenue is $12 million on 800,000 units, or $15 per unit).In
this case, the company must trim its costs in order to lower the break-even
point so that it can charge the lower price consumers expect (Perreault,
Cannon, and McCarthy, 2009).
5) Markup
In general, a dollar markup is the difference between a companys selling
price for a
product, and its cost to manufacture or purchase it. For a retailer, then, the
markup is the difference between the price it charges consumers and the
cost the retailer must pay for the product. Markups are usually expressed
as a percentage, and there are two different ways to

compute markups on cost or on selling price: Exhibit 1-14 below shows two
different ways to compute markups on cost or on selling price. Thus, for
any level of reseller: Dollar markup equal selling price minus cost
(Perreault, Cannon, and McCarthy, 2009). Markups are usually expressed
as a percentage, and there are two different ways to compute markups on
cost or on selling price.
Exhibit 1-14 Computes markups on cost or on selling price.
Markup of Baskin Robbins
A Cakes Baskin Robbins industry used a markup rate of 40%.
To find the selling price of Cakes that cost the retailer $25.
Markup Cost
The markup is 40% of the $25 cost, so the markup is:
(0.40)(25) = 10
Markup Selling Price
Then the selling price, being the cost plus markup, is:
25 + 10 = 35
The item sold for
$ 35.00
6) Suggested selling price
The marketing mix consists of everything the firm can do to influence the
demand for its product. The many possibilities can be collected into four
groups of variables known as the four Ps: product, price, place, and
promotion. Price is the amount of money customers must pay to obtain the
product of Baskin Robbins. For example, Ford calculates Suggested Retail
Prices that its dealers might charge for each Escape. But Ford dealers
rarely charge the full sticker price. Instead, they negotiate the price with

each customer, offering discounts, trade-in allowances, and credit terms

(Perreault, Cannon, and McCarthy, 2009).
These actions adjust prices for the current competitive situation and bring
them into line with the buyers perception of the cars value. The United
States are bike sales and almost 50 percent of the heavyweight segment.
For several years running, sales have outstripped supply, with customer
waiting lists of up to two years for popular models and street prices running
well above suggested list prices (Perreault, Cannon, and McCarthy, 2009).
7) Profit margin
A successful price increase can greatly improve profits. For example, if the
companys profit margin is 3 percent of sales, a 1 percent price increase
will boost profits by 33 percent if sales volume is unaffected. A major factor
in price increases is cost inflation (Perreault, Cannon, and McCarthy,
2009). Rising costs squeeze profit margins and lead companies to pass
cost increases along to customers.
The ways a Baskin Robbins might assess and respond to Haggen Dazs
competitors price cut. Suppose the Baskin Robbins learns that competitor
Haagen Dazs has cut its price and decides that this price cut is likely to
harm Baskin Robbins sales and profits. It might simply decide to hold its
current price and profit margin. Using the example in grocery wholesaling,
the average profit margin is often less than 2 percent. Although the store
brands can be hard to establish, but costly to stock and promote, Baskin
Robbins also yield higher profit margins for the reseller. The Baskin
Robbins gross margin is $10, and operating costs amount to $8 per cakes
sold, the Baskin Robbins profit margin will be $2.
8) Price and Quality Relationship - Perceived value
Treating customers fairly and making certain that they fully understand
prices and pricing terms is an important part of building strong and lasting
customer relationships. Thus, before setting prices, the marketer must
understand the relationship between prices for the companys product.
Prices have a direct impact on a firms bottom line. More importantly, as a
part of a companys overall value proposition, price plays a key role in
creating customer value and building customer relationships (Perreault,

Cannon, and McCarthy, 2009). To the extent that a company can

differentiate and position itself as providing superior customer value, it
gains competitive advantage. But solid positions cannot be built on empty
promises. If a company positions its product as offering the best quality and
service, it must actually differentiate the product so that it delivers the
promised quality and service.
Value based pricing; assess customer needs and value; set target price to
match customer Perceived Value; determine costs that can be incurred,
and design product to deliver desired value at target price. Value-based
pricing reverses this process. The company first assesses customer needs
and value perceptions. It then sets its target price based on customer
perceptions of value (Perreault, Cannon, and McCarthy, 2009). The
targeted value and price then drive decisions about what costs can be
incurred and the resulting product design. As a result, pricing begins with
analyzing consumer needs and value perceptions, and price is set to match
consumers Perceived Value (Perreault, Cannon, and McCarthy, 2009). A
Baskin Robbins using value-based pricing must find out what value buyers
assign to different competitive offers. If the seller charges more than the
buyers perceived value, the companys sales will suffer. If the seller
charges less, its products sell very well. Despite, they produce less
revenue than they would if they were priced at the level of perceived value.
d. Promotion
Promotion is communicating information between the seller and potential
buyer and others in the channel to influence attitudes and behavior. The
promotion part of the marketing mix involves telling target customers that
the right Product is available at the right Place, and at the right Price.
Therefore, Promotion must be fine-tuned for a specific target market; it
must fit with the other variables of the marketing mix, and reinforce the
strategys differentiation and position. The ongoing activities of personal
selling, advertising, sales promotion and public relations are often
considered aspects of promotions (Perreault, Cannon, & McCarthy, 2009).
There are two basic promotion strategies, Push and Pull.
The Push Strategy maximizes the use of all available channels of
distribution to push the offering into the marketplace. This usually requires

generous discounts to achieve the objective of giving the channels

incentive to promote the offering, thus minimizing the need for advertising.
The Pull Strategy requires direct interface with the end user of the
offering. Use of channels of distribution is minimized during the first stages
of promotion and a major commitment to advertising is required. The
objective is to pull the prospects into the various channel outlets creating
a demand and the channels cannot be ignored.
1) Personal Selling
Personal selling involves direct spoken communication between sellers and
potential customers. Salespeople get immediate feedback, which helps
them to adapt. Although some personal selling is included in most
marketing mixes, it can be very expensive (Perreault, Cannon, & McCarthy,
2009). Thus, it is often desirable to combine personal selling with mass
selling and sales promotion.
2) Advertising
Baskin Robbins has a website which consider as an advertising tools to
attract the customers and to show them that latest product offers at the
URL is http://www.baskinrobbins.com/. In addition to web site, Baskin
Robbins distributes brochures to customers who visit the store to inform
customers about the new products and latest offers. For example,
consumers who buy magazines addressed to their interests such as Vogue
or Fortune rarely complain about the ads because the magazines advertise
products of interest. Advertising make much of television and radio free to
users and keep down the costs of magazines and newspapers. Advertising
is typically done with direct mailing, internet, telemarketing, television or
radio, and other type of advertisements (Perreault, Cannon, & McCarthy,
2009).
a) Direct mail
Direct mail advertising sends advertising messages to target consumers
through the mail, either addressed to pre-selected individuals, or
unaddressed and delivered to pre-selected areas. Advertising mail includes

advertising postcards, letters, mailers, circulars, samples, catalogs, CDs

and other commercial merchandising materials.
b) Internet
Internet advertising is a form of promotion that uses the Internet for the
expressed purpose is to deliver the marketing messages, and to attract
customers. Examples of online advertising include contextual ads on
search engine results pages, banner, rich media, and classified. The
benefit of internet advertising is the immediate publishing of information
and content that is not limited, by geographical time zone.
c) Telemarketing
Telemarketing involves using the telephone to sell directly to consumers
and business customers. Telephone marketing now accounts for 22
percent of all direct marketing-driven sales. Were all familiar with
telephone marketing directed toward consumers, but business-to-business
marketers also use telephone marketing extensively, accounting for more
than 55 percent of all telephone marketing sales.
d) Television
Direct marketers air television spots, often 60 or 120 seconds long, which
persuasively describe a product and give customers a toll-free number or
Web site for ordering. Television viewers also often encounter full 30minute or longer advertising programs, or infomercials, for a single product.
e) Radio
Radio is a good local acceptance; high geographic and demographic
selectivity; low cost. Although, with some limitations on audio only, fleeting
exposure; low attention (the half-heard medium); fragmented
audiences.The advantage of the low ad rates for radio. Advertisement rates
are on the rise but the costs are still more affordable than visual mediums
like television.
f) Others

Outdoor are flexibility; high repeat exposure; low cost; low message
competition; good positional, and selectivity. Newspaper is flexibility;
timeliness; good local market coverage; broad acceptability and high
believability.
3) Sales Promotion
Baskin Robbins is doing in-store promotion which includes the interior
design and decoration of the store with signs and posters for the latest
promotions and offers. Baskin Robbins used the in-store promotion tool
and the nice decoration to attract different customer group such as
teenagers, families and kids especially if the stores are in malls. In addition
to that, Baskin Robbins offers free ice cream scoop and a coupon of $ 3.00
off on ice cream cake for customers birthday (Something to celebrate)
(Baskin Robbins, 2009).
a) Sale Prices
The 4 Ps of Marketing, the marketing mix is a very useful guideline for
understanding the
fundamentals of what makes a good marketing campaign as Baskin
Robbins. The price business set for the business product or service plays a
large role in its marketability. Pricing for products or services that are more
commonly available in the market is more elastic, meaning that unit sales
will go up or down more responsively in response to Baskin Robbins price
changes (Perreault, Cannon, & McCarthy, 2009). By contrast such as
Haagen-Dazs of London dairy products have a generally more limited
availability in the market (but with strong demand) are more inelastic,
meaning the price changes will not affect unit sales price as much.
Although, the price elasticity of Baskin Robbins product or service can be
determined through various market testing techniques (Baskin Robbins,
2005).
b) Discounts
Buyers may learn about discounts either at the point of sale or through
advertising. At the point of sale, discount price may be posted on the
package, on signs near the product, or in storefront windows. Many types

of advertisements can be used to notify consumers of upcoming discounts,

including flier, newspaper and television ads. For example, discounts are
especially common in the food industry, most often at local supermarkets
run weekly specials (Perreault, Cannon, & McCarthy, 2009). Discounts may
be initiated by the manufacturer, the retailer, or the distributor. For instance,
a manufacturer may "pre-price" a product and then convince the retailer to
participate in this short-term discount through extra incentives (Perreault,
Cannon, & McCarthy, 2009). For example, the terms used for discounts
items are: 50% off, and Save 50%.
c) Coupons
Coupons usually reduce the purchase price or offered as cash. Coupons
need to state the offer clearly and make it easy to recognize. Many sales
promotions, such as coupons, have the effect of lowering the prices
consumer pay. Coupons have become a standard mechanism for sales
promotions. On-shelf couponing: Coupons are present at the shelf where
the product is available. Coupons are available online and consumers print
them out and take them to the store. Thus, sales promotion has been used
as a tool to overcome consumer price resistance. For example, to catch a
deal on a favorite cakes and treats at Baskin Robbins by opting to get
special offers, and coupons all year long or joining, most often he or she
received an instant coupon for a free ice cream.
d) Contests
The main difference between contests and sweepstakes is that contests
require entrants to perform a task or demonstrate a skill that is judged in
order to be deemed a winner, while sweepstakes involve a random drawing
or chance contest that may or may not have an entry requirement. At one
time, contests were more commonly used as sales promotions, mostly due
to legal restrictions on gambling that many marketers feared might apply to
sweepstakes.
e) Sweepstakes
The use of sweepstakes as a promotional tactic has grown dramatically in
recent decades, partly because of legal changes and partly because of
their lower cost. Administering a contest once cost about $350 per

thousand entries, compared to just $2.75 to $3.75 per thousand entries in a

sweepstakes. Furthermore, participation in contests is very low compared
to sweepstakes, since they require some sort of skill or ability (Perreault,
Cannon, & McCarthy, 2009).
f) Tradeshows
The sales promotion people might set up and staff tradeshow exhibits. For
example, Epson uses tradeshow exhibits to reach German business
customers. Trade promotions permit manufacturers to influence retail price,
retail sales, and total channel profit by rewarding resellers for lower prices
and subsidizing their selling effort. Sometimes tradeshow exhibitors use
attractive models to encourage buyers to look at a firms product, especially
when it is displayed near other similar products in a circus like atmosphere.
Tradeshows are a cost-effective way to reach target customers and
generate a list of live prospects for sales representative follow-up. Some
sellers give promotion items such as pen sets, watches, or clothing
perhaps with the firms brand name on them to remind business customers
of their products (Perreault, Cannon, & McCarthy, 2009).
4) Public Relations
Public Relations (PR), media relations, and public affairs: the softer, more
forgotten side of marketing that involves communication to various target
publics. Too many marketers forget Public Relations and miss
opportunities to make the public aware of their products. Media relations
specifically deal with the press (Perreault, Cannon, & McCarthy, 2009).
Public affairs, also known as governmental affairs, deal with the various
government entities that impact the organization.
5) Web Site
Firms identify the best prospects who visit the Baskin Robbins website so
that a salesperson can immediately reach out and move these prospects
through the sales process or provide customer support (Perreault, Cannon,
& McCarthy, 2009). Web sites are an excellent way to allow customers to
reach businesses. Businesses can be accessed at any time and any place
in the world. Customers can order goods or services, products, ask

questions, business sales promotions and the business location, all at the
click of a button.
9) Budget
Budget details a supporting marketing budget that is essentially a projected
profit-and-loss statement. It shows expected revenues (forecasted number
of units sold and the average net price) and expected costs (of production,
distribution, and marketing).The difference is the projected profit. Once
approved by higher management, the budget becomes the basis for
materials buying, production scheduling, personnel planning, and
marketing operations (Perreault, Cannon, and McCarthy, 2009).
Other companies use the percentage-of-sales method, setting their
promotion budget at a certain percentage of current or forecasted sales.
The budget is a percentage of the unit sales price. The percentage-of-sales
method has advantages (Perreault, Cannon, and McCarthy, 2009). It is
simple to use and helps management think about the relationships between
promotion spending, selling price, and profit per unit.
10) Control/monitor
Control and Monitor Outlines the control that will be used to monitor
progress and allow higher management to review implementation results
and spot products that are not meeting their goals. It includes measures of
return on marketing investment. A companys strategic fit with the
environment will inevitably erode, because the market environment
changes faster than the companys seven Ss. Thus, a company might
remain efficient while it loses effectiveness.
Perreault, Cannon, & McCarthy (2009) pointed out that it is more important
to do the right thing to be effective than to do things right to be efficient.
The most successful companies excel at both. Once an organization fails to
respond to a changed environment, it becomes increasingly hard to
recapture its lost position. Organizations, especially large ones, are subject
to inertia. Its difficult to change one part without adjusting everything else.
Yet organizations can be changed through strong leadership, preferably in
advance of a crisis. The key to organizational health is willingness to

examine the changing environment and adopt new goals and behaviors
(Perreault, Cannon, and McCarthy, 2009, p.185)
a. Feedback Mechanism to Monitor Progress
A feedback mechanism method to monitor progress is to utilize the Baskin
Robbins intranet. Using a log-in and password based software program,
corporate employees, and franchise owners alike can monitor up-to-date
information. This application can support supply chain operations, financial,
and marketing material. Global companies like Baskin Robbins have
successfully communicated using an intranet and is an invaluable tool for
monitoring progress. A franchise owner can log-on and check in with
corporate to download sales reports or the latest marketing material. The
intranet can inform a franchisee about upcoming events or promotions and
educate them to maximize the business opportunity.
Corporate can monitor the business from a variety of aspects to maintain
the servers and the data contained on them. The administrative duties is
distributed and documented on a single network that is accessible to many
satellite locations. For example, the introduction of a new flavor as in Berry
Nutty Banana is communicated using the intranet. Corporate can gather all
necessary material and have available ready to download for franchisees,
distribution center managers, and corporate administrative support. This
has proved a useful and successful marketing tool to retain loyal customers
and monitor the progress of the program.
b. Evaluation Process
The Evaluating Process franchisees can feel at ease knowing they are a
mouse click or phone call away from preventing a possible problem in the
supply chain. Evaluating business opportunities and marketing strategies
are also available on the corporate intranet. All users as part of the training
process will learn to properly input and upload pertinent data. Without this,
queries are unsuccessful. Managers and owners are responsible for
uploading information such as daily sales, and inventory. Corporate users
are responsible for evaluating process and supporting existing strategies
while forming new ideas for future opportunities. The evaluation process is
only as good as the up-to-the-minute monitoring process. The most

effective and efficient manner is to have a central web-based corporate

intranet (Perreault, Cannon, and McCarthy, 2009).
c. Performance Objectives (Quantifiable Elements)
Performance Object the effectiveness of Baskin Robbins market plan, the
company must research past numbers, growth over the past years within
the various markets, the size of prospective customers, and especially
previous innovative products that were introduced into the market. By
recognizing these elements and determining the amount of growth in the
gross revenues, then Baskin Robbins will be able to set and accomplish
reasonable percentage growths for the upcoming years Monitoring the
effectiveness includes scheduling meetings on a regular basis to review the
progress in both costs and sales. Baskin Robbins must observe their
marketing objectives, because if you have too many, then this isnt
necessarily quantifiable, resulting in goals that arent either reasonable or
reachable. Controlling the effectiveness of Baskin Robbins marketing plan
is evident, especially if Baskin Robbins is viewing current trends in revenue
and profit, and viewing steady, current incremental improvement. Instead
adjust to the current trends and make necessary, adequate changes.
Baskin Robbins changes of adjusting the timing, budgets, or tasks should
be done with organization. What changes Baskin Robbins makes should be
kept with proper documentation.
Profit margin is simply profit divided by sale (Baskin Robbins, 2009). This
means that there are as many measures of profit margin as there are
measures of profit. Baskin Robbins will simply find their profit margin by
dividing the total sales by the total cost. Baskin Robbins can compare to
other companies in the same industry, this will help Baskin Robbins identify
trends in the company for year to year. One fact that should be known
should be operating margin, which will measure Baskin Robbins pricing
strategy and operating efficiency. Baskin Robbins measure the operating
margin will be the operating income divided by the net sales. Operating
margin is a measurement of the proportion of a companys revenue that is
left over after variable cost, such as wages, raw material have been paid
(Baskin Robbins, 2009). In order for Baskin Robbins to be successful their
operating margin has to be able to pay the fixed costs. To understand
operating margin that if a Baskin Robbins is operating at a 10% operating

margin that for every dollar that they make in sales, Baskin Robbins will
make .10 of that dollars.
a. Profit margin
Profit margin is simply profit divided by sales. This means that there are as
many measures of profit margin as there are measures of profit. Baskin
Robbins will simply find their profit margin by dividing the total sales by the
total cost. Baskin Robbins can compare to other companies in the same
industry, this will help Baskin Robbins identify trends in the company for
year to year. One fact that should be known should be operating margin,
which will measure Baskin Robbins pricing strategy and operating
efficiency. Baskin Robbins will measure the operating margin will be the
operating income divided by the net sales. Operating margin is a
measurement of the proportion of a companys revenue that is left over
after variable cost, such as wages, raw material have been paid. In order
for Baskin Robbins to be successful their operating margin has to be able
to pay the fixed costs. To understand operating margin that if a Baskin
Robbins is operating at a 10% operating margin that for every dollar that
they make in sales, Baskin Robbins will make .10 of that dollars.
b. Market share
Market Share is the portion or the percentage of sales that a particular
product or service that are controlled by a company. Baskin Robbins would
use the market share to determine their competitive strengths and
weaknesses in a given region to compare itself to other companies in the
same region. It also gives Baskin Robbins an accurate assessment of how
they are performing from year to year. Baskin Robbins is among the top
three ice cream industry are; Dairy Queen owns 40% of the market share
and Baskin Robbins own 9 % of the market, but Cold Stone Creamy has
tripled its sales over the same period and grew its market share to about
7.5 percent, which has narrow gap with Baskin Robbins (Boston Globe,
2007). One way that Baskin Robbins is trying to increase its market share
is by adjusting the approach of servicing customers. Baskin Robbins had
the sundae stations located behind the employees, which when employees
would make the customers sundae, the employees would turn their backs
to the customers to make the treats. Baskin Robbins went with the

approach of having the employees work station on the front counter, so that
they would not have to turn their backs to customers. Baskin Robbins also
changed its logo, and made a step up counter, so that the children didnt
have to be picked up by their parents to see the ice cream flavors (Baskin
Robbins, 2007).
c. Promotional effectiveness
Promotional Effectiveness- is devoting dollars to consumer promotions can
be effective way to increase business activity. Planning the promotions, its
important to understand the insight that make the difference between
profitable promotions and those that fall short of expectation. Ways that you
can examine Baskin Robbins is by coupons, special packs, discounted
prices, sampling, buy-one get-one promotions, special displays, feature
ads, on-pack stickers, special packaging, and event or sponsor-driven
promotions these all activates that can increase sales and profit. Some of
the current promotion that Baskin Robbins is portioning to increase the
effectiveness is on Wednesday if you show pink you get a yummier deal on
your treats (Boston Globe, 2007). The second promotion is that Baskin
Robbins is celebrating the 31ST. with a 31 % off on hand packed ice cream
on the 31st of the month, which would be January, March, May, July,
August, October, and December. The third promotion that Baskin Robbins
is offering is getting a Blast now for only RM13 per Cup. The fourth
promotion is shows pink for example for breast cancer awareness they will
add a scoop of ice cream onto your Blast with just RM 3.10. These are
some of the ways the Baskin Robbins is devoting its dollars to have an
effective promotion campaign to increase sales and profit.
d. Market penetration
Market Penetration is to increase the market share of an existing product,
or promoting a new product, or other strategies like bundling, extensive
advertising, lower prices, or volume discounts. One way that Baskin
Robbins has tried to increase its market penetrate is by introducing a new
line of Caf latte drinks and other ice cream concoctions, because the
younger generation is interested in these types of drinks. Baskin Robbins
redesigned the stores to add some entertainment, with the employees
preparing customized sundaes and milkshakes at the counter bar as

customers watch the entertainment of make the treats (Boston Globe,

2007).