baskin_robbins aug 18
TRANSCRIPT
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Baskin Robbins
By-
Shrikant Ajmera
Chandan Kumar
Gauri Ghatge
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History
Baskin-Robbins a global chain of ice cream parlours founded
by Burt Baskin and Irv Robbins in 1953, from the merging of
their respective ice cream parlours, in Glendale, California.
It claims to be the world's largest ice cream franchise, with more
than 5,800 locations, 2,800 of which are located in the United
States.
Baskin-Robbins sells ice cream in over 30 countriesSources: www.baskinrobbins.com
www.baskinrobbins.co.uk/about_us/history.html
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In India
A joint venture between MDPMC Pvt. Ltd. - US
subsidiary of Allied Domecq PLC
Started In December 1993(Mumbai)
Initial target Upper income group in posh localities
of big metros
With 1500-2000 square feet outlets like US
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Market expansion
Tier A, B & C cities with 127 franchisees in 60
cities
Tried to keep the taste intact
Procured raw materials from US E.g. Jamoca
coffee
Ice-cream pricing at higher end
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Issues in case
Challenges in global ice cream sales
Importance of alternative distribution channels
Effect of sales promotion strategies
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Questions for Discussion
1. Despite having operated in India for a decade, Baskin-Robbins was able to
make a profit only in the 11th year. What were the mistakes the company
made in its understanding of the ice-cream market and the psyche of theIndian consumer?
2. Baskin-Robbins achieved a turnaround in its business by following an
aggressive distribution strategy to achieve higher sales. Briefly highlightthe various measures taken by the company. What could Baskin-Robbins
do in the future to help sustain its profit levels?
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Metamorphosis(Management change )
In 2000-2001, Pankaj chaturvedi took over asCEO - India and South Asia
He restructured distribution and sales process
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Main changes
To make the business viable for companies and
profitable for franchisees
Right sizing-closed unprofitable outlets in C gradecities and streamlined the distribution network
Size of store reduced to 200-350 sq. ft. to decrease
the fixed cost Tie-up with hotels, airlines and top end restaurants
Specific targeting - Upper middle class youth
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New strategies
(Product and Distribution)
Concentrated on A grades cities only for
expansion Innovation-SOTF
Outlets redesigned for change in ambience
(kiosk) Started selling pre-packed ice creams in malls,
theatres and other happening places
Launched new distribution points Shop in Shop
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New promotion Strategies Allocated Rs 10 million
Started joint promotion with multiplexes and malls
Consumer promotion-Two schemes
1)Brochure scheme-Offered a 50 % discount and priced at Rs 299
2)Value additive scheme-Free scoops of ice cream
Thepaanchvi pass campaign. Thespiderman 3 campaign
MTV Roadies 6.0
Drona, Love Story 2050
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Continued ..
Tie-up with Pizza-Hut
Distributed as freebies with big pizzas(B2b)
Capitalized on festivals and offered coupons as
corporate gifts
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Distribution
Outsourced distribution network
Consolidated Supply Chain
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Training
Spoke and hub method for training centre selection
Outsourced general module on Hygiene, First aid
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First taste of Success
Net profit in year 2003 (after 11 years)
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A big question How long they can sustain in the market..?
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Baskin Robbins Amul Vadilal QualityWalls
HaagenDazs
Quality Premium Medium Medium-low
Medium-low
Superpremium
Flavoursavailable
1000+ flavors,Mostly international+ some Indian
flavors, (stillexpanding in terms ofoffering Indianflavors.)
Focus onlyon Indianflavors (The
Taste ofIndia)
120+flavorsMostly
IndianFlavors
MostlyIndianFlavors
Mostlyinternational.
Otherfeatures
Parlors mostly inmetros and urbanizedareas.
OutletsPresent allover thecountry
OutletsPresent allover thecountry
OutletsPresent allover thecountry
Only at selectplaces even inthe metros.E.g.: selectcity walk.
Sources: Book : Business statistics , case study Ice cream market in India : changing tastes
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Suggestions
We feel that some more Indian/regional flavours
should be introduced in order to attract morecustomers.
Introduction of nutritional, low fat ice cream flavorsspecifically for people with diabetes and in general
to take care of the growing health concerns among
the customers.
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Pricing suggestions:
BR should price its non-exotic products lower than current to
explore the non-upper class income group as well and to
compete with the lower priced brands like Amul, Vadilal
which account for a huge market share
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Positioning : Value Price Matrix
Price
Sources: Book : Business statistics , case study Ice cream market in India : changing tastes
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Competitors
In rural areas, Kulfis and ice creams made by small cottageindustry are popular
Amul: 38% market share. Huge emotional connection with
Indian consumers. 70,000 stores across the country!
Quality Walls:14% market share. Widespread network of
pushcarts present on every street corner.
Vadilal:12% market share. Strong player in western India
(Maharashtra, Goa and Gujarat). Mother Dairy: 8% market share. Stronghold of North India. Its
strength is the 4,000 pushcarts out on the streets.
Sources: Book : Business statistics , case study Ice cream market in India : changing tastes
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Continued
BR faces stiff competition from Amul as it has a market share of 38%
It also faces a major competition from the local producers and parlors which
constitute 18% of the market share.
Sources: Book : Business statistics , case study Ice cream market in India : changing tastes
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THANKYOU!