baskin_robbins aug 18

8/4/2019 Baskin_Robbins Aug 18

1/23

Baskin Robbins

By-

Shrikant Ajmera

Chandan Kumar

Gauri Ghatge


2/23

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


3/23

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


4/23

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


5/23

Issues in case

Challenges in global ice cream sales

Importance of alternative distribution channels

Effect of sales promotion strategies


6/23

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?


7/23

Metamorphosis(Management change )

In 2000-2001, Pankaj chaturvedi took over asCEO - India and South Asia

He restructured distribution and sales process


8/23

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


9/23

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


10/23

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


11/23

Continued ..

Tie-up with Pizza-Hut

Distributed as freebies with big pizzas(B2b)

Capitalized on festivals and offered coupons as

corporate gifts


12/23


13/23

Distribution

Outsourced distribution network

Consolidated Supply Chain


14/23

Training

Spoke and hub method for training centre selection

Outsourced general module on Hygiene, First aid


15/23

First taste of Success

Net profit in year 2003 (after 11 years)


16/23

A big question How long they can sustain in the market..?


17/23

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



Only at selectplaces even inthe metros.E.g.: selectcity walk.

Sources: Book : Business statistics , case study Ice cream market in India : changing tastes


18/23

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.


19/23

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


20/23

Positioning : Value Price Matrix

Price



21/23

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.



22/23

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.



23/23

THANKYOU!

baskin_robbins aug 18

Documents