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BASKIN ROBBINS SWOT ANALYSIS

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rfs 127

on 14 July 2014

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Transcript of BASKIN ROBBINS SWOT ANALYSIS

BASKIN ROBBINS SWOT ANALYSIS
Introduction of Baskin Robbins
The world’s largest chain of ice cream parlors founded by
Burt Baskin
&
Irvine Robbins
in 1945 in Glendale, California
Its headquarter is located in
Canton, Massachusetts
Since 1945,
more than 1,000
unique, fun and delicious ice cream
flavors
were introduced
Products
: cup and cone ice creams, hand-packed ice creams, waffles, shakes, fruit fusion, desserts which include cake and ice cream rolls
Their
first slogan
in 1945 was

“31 Flavors of Fun”
Their
current slogan
, from January 2014 is

“Who wants some taste?”

STRENGTHS
Excellent services

In Malaysia, on the
31st of a month
,
they offer
31%
off their hand-packed ice cream
Provide several services for different age group E.g.
birthday club
for children
-In Malaysia, one sundae and a RM5 voucher
-in UAE, free ice cream scoop and a coupon of DH 11 off of an ice cream cake
Online ordering and some stores offer catering service
They provide nutritional information and ingredients for all the products
Excellent Flavors
The ice cream is known for its great taste, quality and flavors all over the world
The company has introduced
more than 1000 flavors
since 1945
offering

31 flavors

which is its great attraction for the customers.
In 2008, its first full menu of better-for-you frozen treats called
Bright Choices
was launched. All artificial trans fats was removed from its ice cream (80 to 140 calories per 2.5 ounce scoop)



STRENGTHS
Fast rate of growing
Growing at a much faster rate than its competitors like Haagen-Dazs.
Baskin Robbins have 70 stores in the UAE and 20 stores in Abu Dhabi, while the 
competitor (Haagen-Dazs) have 7 stores in the UAE and no stores in Abu Dhabi
In Malaysia, Baskin Robbins has 16 stores in Kuala Lumpur, while Haagen Dazs has only 5 stores in Kuala Lumpur
Effective Slogan & recognition
known for its “31flavors” slogan, with the idea that a customer could have a different flavor everyday of any month.
They believed that people should be able to sample flavors until they found one they wanted to buy, hence their famous
small pink spoons
Skilled workforce
Before the staffs start working, they have to undergo special trainings
The staffs are known to be outgoing and friendly to the costumers



Conclusion
In summation, Baskin Robbins is a
very well-known global brand

with thousands of stores all over the world.
Achieved from its
high quality of products

Focus on creating the
fun, inviting atmosphere.
Able to keep in the lead &
face its rivals

in the industry
Offer
different products & flavors
to make others smile & feel good.
The founders believed in the concept of different choices, so they created
31 flavours
Irv Robbins,
“We sell fun, not ice cream”

What is a SWOT Analysis ?
It is a study undertaken by an organization to identify and categorize its significant internal and external forces.

The purpose of a SWOT analysis:

help an organization developing a strong business strategy by making sure that most or all of the internal and external factors affecting the business are taken into consideration.


WEAKNESSES
Expensive initial investment & difficult to invest
-
Franchising fee and cost
are high
-The initial franchise fee costs $25,000.

Most of the stores are small in size
-can become crowded at times
-causes a very long queue
Costly
- As they have 31 different flavors, the
cost of ingredients

are quite high
-raising prices at Dunkin' Donuts and Baskin-Robbins stores to help cover the higher costs of key ingredients such as coffee and milk.

WEAKNESSES
Poor marketing strategies
-
frequent discount for customer’s birthday
&

in shop promotions
-total revenues on international scale:
Dec 31, 2011 ($28,022 thousands) ($17,971 thousands) in December 29, 2012.

Not all branches offer the same products and the 1000 flavours
-Mushrif branch in Abu Dhabi 
don’t offer cakes while Al 
Kaldiyah branch also in Abu 
Dhabi offer them
-in Malaysia, Baskin Robbins has stopped producing the
Rum Raisin flavour

OPPORTUNITIES
Industry growth
- demand for fast food and ice cream-especially among younger people
- UAE is the largest US food products (forecast sales for fast food by 25%)
- total foreign franchises in Malaysia- 40%


Average income of people is increasing
It is around DH 5,000
in Malaysia:
RM4025 (2009) to RM5000 (2012) In Kuala Lumpur, it is around RM8586.

Increasing number of tourists
aids in the high number of sales
Abu Dhabi- expected to around15% growth during 2014
Malaysia-total of 7.09 million tourists (first quarter of 2014)


OPPORTUNITIES
Changes in trends & lifestyles
- people like eating outside more nowadays
-shopping habits
-People aware of their health & eating habits
- BR introduces the Bright Choices


Country’s rules and regulations
-trade policies and procedures in UAE are easy
- free trade zone with no tariff , no prior licensing and low importing duties
-opportunity for Baskin Robbins to ease its trade activities, investments and promote more of its products in UAE

THREATS
Off Season

-less demand during winter
-Dunkin Brands reported that the first-quarter earnings fell by 3.5% during winter.
-to keep sales up it is important to sell many cakes

The change in culture, lifestyles & trends

towards healthy eating
due to the government trying to avoid the rising number of obesity

The dairy products related diseases
mad cow is a threat for the company, especially for its ice cream products
results in a decline in sales

THREATS
In some countries the consumption of ice cream is very low
Malaysia - 1.9 per capita
Australia- 18.0 per capita
USA- 20.8 per capita
Switching between products is relatively easy
due to increasing number of food outlets & restaurants
customers of Baskin Robbins can shift to other high quality affordable products from other countries
local ice cream producers offer menu that have the same flavors and taste with lower price

Competitors
Ben & Jerry’s
- gaining more attention in UAE
Cold Stone Creamery
offers lower prices
- BR- $3.15 (1 scoop cone)
- CSC- $ 3.10 (1 scoop cone)
Market Force Information survey
-Ben & Jerry's : 1st spot
- Baskin Robbins: 5th spot
GROUP MEMBERS:
Amira
Fatin
Afiqah
Adilah
Full transcript