Making a Cold Brand Hot

By Al McClain

It's 90 degrees with high humidity and summer is at least unofficially here. So, what's the next best thing to ice cream? How about a story about revitalizing a 60-year-old ice cream brand?

First, just a few stats I couldn't resist:

• 2004 average American per capita ice cream consumption: 21.5 quarts (Source: USDA)
• Top 5 flavors: vanilla 26 percent, chocolate 13 percent, Neapolitan 5 percent, strawberry 4 percent, cookies 'n cream 4 percent (NPD Group)
• 2004 total U.S. ice cream sales: $21.4 billion (International Ice Cream Association)
• Total 2004 away from home ice cream sales: $13.3 billion (IICA)

Suffice to say, ice cream is BIG retailing business.

Ice cream retailer Baskin-Robbins, after more than 6 decades, has 5,600 locations around the world, of which 2,700 are in the U.S. Some Baskin-Robbins tidbits:

• The trademarked "31" flavors represent one for each day of the month.
• B-R has created over 1,000 flavors since 1945.
• B-R has always offered free samples via their iconic pink spoons.
• B-R launched frozen coffee drinks in 1994.

In the restaurant and ice cream shop arena, though, competition is tough. Newer chains. such as Cold Stone Creamery, Maggie Moo's and Marble Slab Creamery. offer unique, entertaining experiences. And, there's always competition from "traditional" ice cream shops: Ben & Jerry's, Dairy Queen, Haagen Dazs, etc.

So, Baskin Robbins has begun unveiling a new look in its stores. The new store design includes a logo that emphasizes the "31" subliminally, metal foot railings so younger customers can see the flavors more easily, new counters and chairs, and a "sundae station" so that customers can better see their frozen confections being made.

Baskin-Robbins plans to open 600 stand-alone new stores over the next four years, along with 800 combination stores (co-located with Dunkin' Donuts and Togos) in that period. The company has experienced double digit increases in sales in the locations that have been remodeled.

Moderator's Comment: Is it better for long-established, successful retailers to do total redesigns, or tinker with their look continuously as they go along?

Baskin-Robbins says that it wants to make the redesigned shops "cool" and a place for teenagers to hang out, while being true to a brand that's recognized by 99 percent of U.S. consumers, and 90 percent worldwide. - Al McClain - Moderator