Case 2.

Baskin-Robbins: Can It Bask

in the Good ‘Ole Days?

Critical Thinking Questions

1. Kimmel and his team were conducting this study because Baskin-Robbins had moved to
redesign Baskin-Robbins stores. Rivals, such as Cold Stone Creamery, were making
significant gains on Baskin-Robbins. Baskin-Robbins competitive positioning was
weakening in relative terms to these faster growing companies. What wasn’t really
understood in December 2003 was whether the brand logo should be changed. While
conventional wisdom in the retailing industry was not to alter a well-established brand,
Kimmel and his group were ready to change the logo, but they needed more information.
Specifically, Baskin-Robbins customers needed to be researched about their preferences
regarding the old and a proposed new logo.

2. In the words of Baskin-Robbins research director Marsha Davis, the problem was stated
in the following manner: “Because management wants to make a change to the logo only
if it is absolutely necessary, we should study our customers’ attitudes toward the old logo
and toward the new logo after showing them the drawings of the redesigned stores. Only
then can we explain whether customers prefer the new logo 2:1 over the old logo.”

3. The big question for the brand team is as follows: Has Baskin-Robbins identified the
right research problem? The response to this big question was made by the brand team
formulating two questions to be answered in a field research project. First, do Baskin-
Robbins customers have a preference for the new logo over the old logo. Second, do
twice as many Baskin-Robbins customers prefer the new logo over the old logo? These
key questions regard preference for the new logo after understanding how the new store
interiors will look like.

4. Kimmel and his team did an adequate job in identifying the marketing research problem.
First, they had consulted the senior executives in the firm—the decision-makers. Given
that the Baskin-Robbins executive group had already decided to pursue store redesigns,
that question had been resolved. What needed to be resolved now was whether the brand
logo needed to be changed.

Second, the brand group had consulted with retail industry communication consultants as
experts. Like the executive group, these consultants had recommended that the decision
to change the logo should be taken only after extensive deliberation and direct research
with customers had been done.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 26

 Third, secondary data was used to diagnose a weakening position of Baskin-Robbins
relative to new entrants. Analysts in the quick-service restaurant industry reported in the
trade journals that the new entrants have continued to grow faster than Baskin-Robbins—
especially in the key metric of same-store sales compared the previous year.

Fourth, qualitative research had been done by executing four focus groups in Chicago,
Los Angeles and New York. In general, these focus group participants agreed that the
Baskin-Robbins brand represented irresistible treats, smiles, and fun. Additionally, these
focus group participants liked the proposed logo that the senior executive group liked.

Fifth, the environmental context of the problem was stated in the following way in the
words of a visiting retailing consultant and Kimmel:

“The context has changed since the mid-1980’s,” visiting retailing consultant Zack
Wheatly said. “Customers are more demanding about the hospitality experience. They
earn more money and they can buy comparable ice creams to Baskin-Robbins in grocery
stores now.”

“While our competitors are pushing this mix-in experience— a higher-priced

theater experience—Baskin-Robbins has decided to focus on delivering a great
value for our consumers in an accessible kind of environment,” Kimmel
responded.

5. Kimmel and his team are able to address an important factor in the result of their project.
The factor is inertia. People and organizations will tend to do the same things unless
acted upon in a way that leads to changing direction.

Research director Marsha Davis asks almost rhetorically “Is Baskin-Robbins such an
established brand that the logo for Baskin-Robbins should not be overhauled?”
Given that store interiors will be redesigned, should the brand logo be changed to signal
something new is happening at Baskin-Robbins? If the logo is changed, will there be
synergy between the logo change and the redesigned interiors? The results could be
dramatic. A new look, a new menu, and a new strategy focused on delivering “irresistible
treats, smiles, and fun” in an accessible way and at a reasonable price could check the
momentum rival brands have developed by focusing on a high-end in-store experience.
Considering these elements, the strategic importance of the Baskin-Robbins’ research
project becomes apparent.

6. The first problem definition was placed into context by Kimmel who suggested that
Wheatly’s attempt at problem definition could be put in context by comparing it to the
New Coke introduction.

The second problem definition attempt was stated by research director Marsha Davis in
the following way:

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 27

 “So restating our problem, I guess it sounds this way,” Davis said. “Because
management wants to make a change to the logo only if it is absolutely necessary,
we should study our customers’ attitudes toward the old logo and toward the new
logo after showing them the drawings of the redesigned stores. Only then can we
explain whether customers prefer the new logo 2:1 over the old logo.”

Kimmel and his team continue to understand the value of what they have accomplished
by defining the marketing research problem in the way that they have. They challenge
their own conclusions by 1) contemplating how they might have missed something
important in their process of developing the statement of the research problem, 2) asking
themselves if they were focused upon the right issue now, 3) should they continue to
consider other logos for such a study, and 4) should they just go ahead with the new logo
because focus group participants had liked the new logo and the senior executives had, as
well.

7. The main inference of the case pertaining to problem definition is that self-questioning
and self-criticism is not easy, but can be part of a revitalization of the brand. Simply put,
the Baskin-Robbins brand is not above questioning by those most dedicated to the
success of the brand. It is not a “sacred cow.” The marketing research problem that is
identified incorporates the conservative approach Baskin-Robbins’ executive group has
taken toward a logo change. The restated marketing research problem includes a
comparison to the old logo (thus, avoiding the New Coke mistake), as well as a definite
hurdle for changing to the new logo (if customers prefer the new logo by a 2:1 ratio to the
old logo) .

8. Taking a formalized approach to problem definition can enable managers to research a

course of action that if taken would defy conventional wisdom and would carry risks in
implementation. Risk is reduced for Baskin-Robbins by conducting the rebranding
research in a correct manner. Much more risk would be carried by committing to
changing the logo without such research. By using the protocol from the text, the five
important tasks in problem definition were taken. In an iterative fashion, a problem
statement was proposed and revised to be better than it was originally stated.

Technical Questions

Chapter 1

9. Marketing research can determine whether the consumers prefer the new logo to the old
logo, identify the underlying reasons for such preference or lack thereof, quantify the
preferences, and statistically examine whether the differences are significant.

Chapter 2

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 28

10. The management decision problem facing the executive group is should Baskin-Robbins
change the logo in addition to redesigning the stores?

Broadly stated, the marketing research problem for Baskin Robbins is as follows: Will
consumers strongly prefer the proposed new logo over the old logo?

Components of the research problem follow:

 What criteria do consumers use in evaluating frozen food stores in general and
ice-cream stores in particular?
 How important is the logo in consumers’ choice of an ice cream store?
 After being shown the drawings for the redesigned stores, will consumers prefer
the proposed new logo over the old logo?
 What are the demographic and psychographic characteristics of consumers who
prefer the proposed new logo over the old logo?

Marsha Davis, Baskin Robbins research director captured the marketing research
problem and its components in the following way: “So restating our problem, I guess it
sounds this way. Because management wants to make a change to the logo only if it is
absolutely necessary, we should study our customers’ attitudes toward the old logo and
toward the new logo after showing them the drawings of the redesigned stores. Only then
can we explain whether customers prefer the new logo 2:1 over the old logo.”

11. Research Question: Will twice as many respondents have more favorable attitudes toward
the proposed new logo than toward the old logo?

H1: The proportion of respondents with more favorable attitudes toward the proposed
new logo will be .66 or more.

Chapter 3

12. They should conduct exploratory research first followed by descriptive research.
Exploratory should include analysis of available secondary data and qualitative research
in the form of focus groups. Syndicated data on general lifestyle, such as those obtained
from Yankelovich Monitor, will be particularly helpful. Exploratory research will help
identify the choice criteria of consumers, the importance of the logo, preference for the
new logo, and the salient demographic and psychographic characteristics of those who
prefer the new logo. Descriptive research in the form of a single cross-sectional survey
will help quantify the findings of exploratory research. Thus, both exploratory and
descriptive research relate to all the four components of the marketing research problem.

Chapters 4 and 5

13. Secondary data pertaining to ice cream preferences and consumption obtained from the
Internet and popular press would be helpful. Syndicated data on lifestyles (e.g., the

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 29

 Yankelovich Monitor, VALS), and ice cream consumption (e.g., NPD panel research),
would be useful.

Secondary data will help in gaining a better understanding of the environmental context
of the problem, developing an approach, determining what primary data to collect, and in
interpreting the findings obtained from primary data more insightfully.

Chapter 6

14. Qualitative research in the form of focus groups and picture response technique would be
helpful in identifying the underlying motivations and reasons as to why people consume
ice cream and how they select ice cream brands.

Chapter 7

15. Yes, a survey should be done to quantify consumers’ preferences for the new logo versus
the old logo. The use of physical stimuli would be very important criteria because
respondents will have to be shown drawings of the redesigned store as well as the old and
the new logos. Mall intercept interviews would be the most appropriate. Sample control
would be good as the profile of the mall patrons comes close to the profile of the target
consumers. In addition, complex questions can be asked, there is very good control of the
environment, and very good response rate.

Chapter 8

16. Yes, the issue of changing the brand logo can be fruitfully addressed by conducting an
experiment. The posttest-only control group design should be adopted. The test group
would be shown the new logo while the control group would see the old logo. Preference
for the logo can be measured using an interval scale. Randomization would ensure the
prior equivalence of the two groups.

Chapters 9 and 10

17. Ordinal scales can be used to obtain overall preferences for the two logos; paired
comparisons can be used. Interval scales, specifically Likert type of scales, can be used to
obtain consumer preferences on attributes such as value, fun, image, etc.

Chapter 11

18. This is a leading question. It prompts the respondents to answer in favor of the new logo.
A more unbiased wording will be to ask, “Which logo do you like better?”

Chapter 12

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 30

19. The sampling process should be as follows:
 Target population: Mall shoppers in the United States in the current year
 Sampling frame: List of Malls in the United States
 Sampling unit: Mall shoppers
 Sampling technique: Judgmental sampling
 Sample size: 1,000
 Execution: Judgmentally select a set of shopping malls across the United States.
Interview shoppers using the mall-intercept method.

Chapter 13

20. The sample, determined by statistical considerations, should be at least 400. This will
ensure that the percentage estimates are within 5 percent of the true values with 95
percent confidence level.

Chapter 14

21. Challenges facing the supervisor in training the interviewers include making the initial
contact, asking questions, probing, recording answers, and terminating the interview.

Chapter 19

22. Q2-The executive group along with Kimmel could ask the following key questions.
Could this project have been conducted more effectively or efficiently? This question, of
course, raises several more specific questions. Could the problem have been defined
differently so as to enhance the value of the project to the client or reduce the costs?
Could a different approach have yielded better results? Was the research design the best?
How about the mode of data collection? Should mall intercepts have been used instead of
telephone interviews? Was the sampling plan the most appropriate? Were the sources of
possible design error correctly anticipated and kept under control, at least in a qualitative
sense? If not, what changes could have been made? How could the selection, training,
and supervision of field-workers be altered to improve data collection? Was the data
analysis strategy effective in yielding information useful for decision making? Were the
conclusions and recommendations appropriate and useful to the client? Was the report
adequately written and presented? Was the project completed within the time and budget
allocated? If not, what went wrong?

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 31