Assignment 3 Group 3 BA2491A MKT420 PDF

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Third Assignment of Principle and Practice of Marketing Mix...

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PRINCIPLES AND PRACTICE OF MARKETING (MKT420)

MARKETING MIX (4P) (GROUP ASSIGNMENT 3)

BASKIN-ROBBINS

PREPARED BY: NURHUSNA UMAIRA BINTI SAHDUN (2021614312) NURUL SYAZIYAH BINTI AHMAD (2021839096) AISYAH MAISARAH BINTI NORHAMIDI (2021823076) NURUL SYAZWANI BINTI MOHD ‘AIDI (2021603684)

PREPARED FOR: DR MOHDAZLISHAH BIN MAZLI

GROUP: BA2491A SUBMISSION DATE” 7th JANUARY 2022

TABLE OF CONTENTS

NO.

CONTENT

PAGE

1.0

INTRODUCTION

1

2.0

ONLINE MARKETING MIX (4P)

2-5

I.

PRODUCT

2

II.

PRICE

3

III.

PLACE

4

IV.

PROMOTION

5

3.0

RECOMMENDATIONS

6

4.0

CONCLUSION

7

5.0

REFERENCES

8

1.0 INTRODUCTION

Baskin-Robbins was founded in the United States by two brothers-in-law, named Burton “Burt” Baskin and Irvin “Irv” Robbins in 1945. Baskin-Robbins is part of Dunkin’ Brands Group. The company specialized in selling various types of ice cream. At first, Burt and Irv open a separate entity in which Irv opened a high-quality ice cream store named Snowbird ice cream, meanwhile Burt opened Burton’s ice cream store. In 1953, they combined their entity and became Baskin-Robbins. Baskin-Robbins is the world’s largest chain of ice cream speciality. Therefore, they have served more than 150 million customers all over the world. For now, Baskin-Robbins company already owned more than 8000 restaurants in over fifty countries including Malaysia. In 2022, there are over 120 Baskin-Robbins stores in Malaysia. The master franchise is owned by The Golden Scoop Sdn. Bhd.1 Baskin-Robbins covers most of the states in Malaysia including Selangor, Kuala Lumpur, Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Penang, Perak, Putrajaya, Terengganu, Sabah, and Sarawak. Baskin-Robbins used various types of marketing strategies to ensure that they can achieve their objectives and sustain the continuity of the company's performance . Therefore, the purpose of this study is to discuss the mix marketing strategies used by the Baskin-Robbin company.

1

Baskin Robbins. (n.d.). Retrieved from Baskin Robbins History: https://www.baskinrobbins.com.my/content/baskinrobbins/en/aboutus/history.html

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2.0 MIX MARKETING STRATEGY Mix marketing strategy defines a combination of the marketing strategy which are product, price, place, and promotion. The purpose of mix marketing is to increase the demands of the company’s product in the market. This is to ensure the company’s objective and target are achieved.

I.

PRODUCT Product can be defined as goods and services offered by the owner to the target

market in order to fulfil the consumer needs and will. This includes physical products and services. Physical products can be touched and seen by our senses such as the packaging, labelling, weight, and product size. Meanwhile, services are identified by the application, convenience, and accuracy. Products are divided into three categories which are hardcore products, tangible products, and side products. Baskin-Robbins is a tangible product that offers goods and services to its customers. Baskin-Robbins present itself as a luxury ice cream brand.2 Baskin-Robbins’ company became famous with their 31 flavours concept which has been an icon for the company. The purpose of the 31 flavours concept is to allow their customers to try different flavours each day of the month. The logo itself also shows the number 31 sandwiched by Baskin and Robbins names. In the beginning, Baskin-Robbins only sold ice cream but they have currently introduced three product lines which are beverages, ice cream, and cakes. Product lines refer to a company that sells rows of products that look alike and related to each other. For instance, Baskin-Robbins offers various types of products such as candies, frozen yoghurt, sundaes, hand-packed ice cream, ice cream cakes, and milkshakes. On the other hand, product attributes can be defined as a characteristic of the product in various factors such as brand, packaging, labelling, and design. For the product characteristics, Baskin-Robbins is known as a committed and innovative company in diversifying its products. As a result, they manage to create more than 1200 ice cream flavours.3 As for the product packaging, Baskin-Robbins provides their own features of product

2

Baskin Robbins. (n.d.). Retrieved from Baskin Robbins History: https://www.baskinrobbins.com.my/content/baskinrobbins/en/aboutus/history.html

3

History:

Baskin Robbins. (n.d.). Retrieved from Baskin Robbins https://www.baskinrobbins.com.my/content/baskinrobbins/en/aboutus/history.html 2|Page

packaging such as boxes for ice cream cakes and pink spoons for ice cream for their customer. This is to create sentimental values for their customers.

II.

PRICE Price can be defined as the amount of money charged for a product or service, or the

sum of the values that customers exchange to gain the benefits of either having or using the product or service.4 As a flexible element, price has always been one of the major elements that determine a company’s profitability, as well as market shares as it can be changed rather quickly. That being said, although price is the only marketing element that generates revenue, it can be a huge problem for some companies due to fluctuating factors. Hence, managers need to carefully consider internal and external factors in setting a product’s price to ensure that the product’s value matches the price, while still maintaining high profits for the company. Baskin-Robbins has kept their premium pricing policy as they claim to only offer premium qualitative products. They believe that their products are far superior and the values justify the monetary price. In Malaysia, a single scoop of Baskin-Robbins’ ice cream ranges from RM7.90 to RM14.50, depending on the size. This is arguably high for some people as these consumers can purchase a tub of Nestle’s ice cream at the same price. However, as Baskin-Robbins segmented its products as premium and high-quality, most of its consumers are relatively satisfied and think that the experience justifies the high price especially those from middle and upper-class consumers. Likewise, many customers also do not mind spending extra money to purchase Baskin-Robbins on special occasions such as birthdays and anniversaries due to the premium ‘image’ that it holds. Baskin-Robbins also implements promotional and psychological pricing in which they offer bulk discount price. Other than that, they also do not round off the price to the nearest digits. For instance, instead of rounding off the price to RM8.00 for a Single Junior Scoop, they maintain the price at RM7.90, although the former is more profitable by 10 cents. Consequently, it creates the psychological image that the price is much lower than it seems, though the difference is not that much. By implementing these strategies, Baskin-Robbins has attracted many customers and remained significant as one of the premium ice cream brands out there.

4

Kotler, P., Armstrong, G., Opresnik, M. (2018). Principles of Marketing. Pearson.

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III.

PLACE

One of the four components of the marketing mix is place or also called distribution. Place in marketing mix alludes to the geographical location where an organization sells goods and provides services. Place or location is said to be one of the main factors of marketing strategies. It is very crucial to know where the company should sell its products given that the area should have its target clients as there is no point in offering items to those who are not intrigued by the item or service. That being said, a company has to convey its products in a place that is effectively open to its expected consumers. The place doesn't generally allude to the store area, it similarly alludes to the setting of products inside a store.5 Baskin-Robbins carefully analyse the demographic of a location before establishing a new branch. This is to ensure that their products are made advantageously accessible for the consumer at the ideal area at the right time with practically no issue. At whatever point purchasers faced with issues involving the accessibility of a product, it is practically sure that this will take the business elsewhere. Hence, this is why it is so significant that the item makes it at the ideal locations as well at the right time to sell and place the products. As Baskin-Robbins mainly target middle and upper-class consumers, their outlets are mainly in urban areas. The first outlet of Baskin-Robbin was opened in Glendale in California, Baskin-Robbins decided to increase their outlets across nations at the beginning of 1976.6 Currently, there are roughly 5000 outlets across at least fifty nations with over 120 BaskinRobbin branches across Malaysia. Baskin-Robbins also follows a franchise strategy in which it gives the permit to the share-holder to create its own distinctive presence in the locality, as indicated by guidelines with all due consideration.7

IV.

PROMOTION Promotion mix consists of the specific blend of marketing activities such as advertising,

public relations, personal selling, sales promotions, and direct marketing tools that a company implements to engage with customers.8 Promotion mix is a crucial element as promotion mix

5

Pathak, R. (2021, June 08). The 4Ps of Marketing: Product, Price, Place and Promotion. Retrieved from https://www.analyticssteps.com/blogs/4ps-marketing-product-price-place-and-promotion

6 Baskin Robbins. (n.d.). Retrieved from Baskin Robbins https://www.baskinrobbins.com.my/content/baskinrobbins/en/aboutus/history.html

History:

7

Bhasin, H. (2019, April 28). Marketing Mix of Baskin Robbins – Baskin Robbins marketing mix. Retrieved from https://www.marketing91.com/marketing-mix-baskin-robbins/

8

Kotler, P., Armstrong, G., Opresnik, M. (2018). Principles of Marketing. Pearson.

4|Page

determines the positioning of the product in the target market. On the other hand, promotion in the online marketing mix refers to the use of online marketing communication strategies to reach target audiences or consumers. In other words, the use of internet for advertising, public relations, direct contact, and sales promotions to reach and influence an audience is known as promotion. Online marketing provides a plethora of useful tactics to incorporate into your marketing mix. When it comes to reaching out to customers, each firm and its online offerings require a unique strategy. Baskin-Robbins is one of the market leaders in the ice cream industry, and it aggressively promotes each franchise location in each nation. Baskin-Robbins has adopted many marketing promotion activities by strengthening its efforts in social and digital platforms, as well as content to aid consumers in gaining a better and more consistent understanding of the brand. Van Der Merwe's 2015 project aims to rebuild the Club 31 loyalty program into a digitally-driven service. However, due to technical issues with the new trend, they have decided to postpone it until further notice. Members will be able to visit an online membership site as well as utilize a regular card or a mobile app in-store. Baskin-Robbins will have more data points on its customers as a consequence of this digital capability, as well as the ability to customize offers and information based on behavioural and geographical data.9 Furthermore, Baskin-Robbins advertises its store by partnering with another brand or sub-brand. In 2018, Baskin-Robbins collaborated with Dunkin' Donuts on a new smartphone game called 'Order of the Seventh Sphere,' also known as OSS. To honour the inaugural launch of the mobile game developed by Thai developers, Baskin-Robbins and Dunkin' Donuts collaborated with a web design firm to produce a unique campaign featuring 3,000 free donuts and 10,000 discounts coupons during the pre-registration period. Furthermore, they provide a delectable reward in the form of complimentary doughnuts and coffee for Dunkin' Donuts or 100% premium imported ice cream for Baskin Robbins.10

9

CAMERON, N. A. D. I. A. (2015, January 28). Baskin-Robbins overhauls agency line-up, plots digital customer loyalty program. Retrieved from https://www.cmo.com.au/article/564932/baskinrobbins-overhauls-agency-line-up-plots-digital-customer-loyalty-program/

10

The Nation. (2018, October 4). Dunkin’s Donuts and Baskin-Robbins join forces with "Order of the Seventh Sphere'' to attract gamers. The Nation Thailand. Retrieve from: https://www.nationthailand.com/in-focus/30355783

5|Page

3.0 RECOMMENDATIONS Although it is undeniable that Baskin-Robbins has successfully implemented a number of effective marketing strategies, we believe that some improvements can be made. First and foremost, Baskin-Robbins should introduce a wider range of beverage options such as coffee in addition to milkshakes. This is due to the fact that Baskin-Robbins mainly targets young adults and adults, in which this group are generally known to be coffee consumers. In addition to that, Baskin-Robbins should also diversify the options by upgrading the products such as introducing more party set which consists of ice cream with milkshakes or coffee, or milkshakes with ice cream cakes. These options definitely mix well together and work as the perfect combination that one could ever imagine. Next, Baskin-Robbins should advertise new menu items more by making a product placement or as known as ‘PPL’ in television shows or surveying to see if it suits the preference and the expectation of their consumers. By doing so, not only Baskin-Robbins can analyse any specific weakness that its products might have and later make improvements on it, but they can also identify their customers’ preference about the menu items in general. This goes with the saying of the co-founder of Baskin-Robbins itself named Irv Robbins; ‘Not everyone like all our flavours but each flavour is someone’s favourite’. Other than that, Baskin-Robbins should take the initiative to improve the existing payment options. The company needs to make sure to provide multiple payment options to customers to make it easier for them to make purchases and transactions. Nowadays, it is vital to accept many types of payments including credit and debit cards, wallets, cash, or mobile payments as customers tend to find everything almost instantly from websites to a basic checkout and easy payments. Last but not least, we believe that Baskin-Robbins should attempt on introducing a special discount program for college students by giving them lower price discounts and loyalty cards. By doing so, Baskin-Robbins could attract more customers as college students tend to attend places in groups. That being said, although this method might equal less profit at first, it will bring more profits for the company in the long run, as a whole.

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4.0 CONCLUSION In conclusion, it has been proven that Baskin-Robbins has considered the elements of marketing mix namely product, price, place, and promotion in implementing its marketing strategies to the fullest extent. Not only that Baskin-Robbins carefully analyse its products based on sales and consumers’ preference, but Baskin-Robbins also keeps its premium price policy along with the premium image that they have segmented among the public. Other than that, Baskin-Robbins is also meticulous in determining the location for each branch to ensure that their products are accessible for their customers in addition to advertising their brand through various promotions with digital marketing as its main method. By implementing all of these marketing strategies, it is not surprising how Baskin-Robbins has become the world’s largest chain of ice cream speciality.

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REFERENCES

Baskin

Robbins.

(n.d.).

Retrieved

from

Baskin

Robbins

History:

https://www.baskinrobbins.com.my/content/baskinrobbins/en/aboutus/history.html

Bhasin, H. (2019, April 28). Marketing Mix of Baskin Robbins – Baskin Robbins marketing mix. Retrieved from https://www.marketing91.com/marketing-mix-baskin-robbins/

Cameron, N. (2015, January 28). Baskin-Robbins overhauls agency line-up, plots digital customer

loyalty

program.

Retrieved

from

https://www.cmo.com.au/article/564932/baskin-robbins-overhauls-agency-line-upplots-digital-customer-loyalty-program/

Kotler, P., Armstrong, G., Opresnik, M. (2018). Principles of Marketing. Pearson.

Pathak, R. (2021, June 8). The 4Ps of Marketing: Product, Price, Place and Promotion. Retrieved from https://www.analyticssteps.com/blogs/4ps-marketing-product-priceplace-and-promotion

The Nation. (2018, October 4). Dunkin’s Donuts and Baskin-Robbins join forces with "Order of the Seventh Sphere'' to attract gamers. The Nation Thailand. Retrieve from: https://www.nationthailand.com/in-focus/30355783

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RUBRICS

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