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Exclusive Super Premium Yogurt Ice Cream
Posted By: sykoyau on 10/29/2006 3:13 AM (CST) 125 Points
I'm preparing to open a new yogurt ice cream shop. Let's just say for now it's really rich, creamy and expensive. The thing is if I were to open up the shop, I'll be up against competitors such as Hagen Daz, Baskin & Robbins, Lecka-Lecka (98% fat free ice cream) and other local made ice cream.

I've tested my ice cream with several people and most of them mentioned that they my yogurt ice cream thing tasted as good or even better (because it contained the healthy yogurt element) as the other ice cream mentioned above.

The problem I'm facing is differentiating my brand from the rest.
Solution: instead of competing on price, I compete on exclusivity. I've came up with this solution to make mine really really exclusive. Only members/cardholders plus a guest are allowed to enter the shop. The guest then is given the option to join the shop's membership. For the opening, 100 people(chosen very carefully to ensure that they fit our target customer characteristics) would be given special invites where from there it's up to them to invite their friends and then their friends will be given the option to join.

By doing so, I'm cutting down on advertising but focusing a lot more on PR. Hence giving the brand a certain prestige and a stronger positioning.

I've shared this with several friends and I've gotten mixed reviews. So for now, I'll just need your thoughts. What do you think? Have this been done anywhere around the world before? Pros and cons of this?

Posted by: Levon Accepted Answer
10/29/2006 3:35 AM (CST)
Sounds like an interesting idea at first -- it is inventive -- to apply a country club style model to a frozen yogurt establishment -- however, I don't know if it would be practical and might be off-putting or even seem like a barrier to many of your potential customers -- especially at first. Maybe tailor the exclusivity member idea to a fancy loyalty card and promote the pros of the loyalty card much in the same way country clubs promote their membership programs. Make the card and promotional material fancy and elegant and communicate exclusivity but don't fully exclude potential new customers.
 
Posted by: binhpt Accepted Answer
10/29/2006 4:25 AM (CST)
Seem you are limiting yourself with such a kind of action. The thing you need at the launching stage is to trigger trial usage as much as you can before thinking of kind of loyalty club. The difference lies in the product taste as well as your own shop. And PR is a perfect tool to let people know about your shop with "extremely good yogurt ice cream".

Good luck to you.
 
Posted by: Positive Thinker Accepted Answer
10/29/2006 6:46 AM (CST)
Hello, I tend to agree with the above comments regarding setting yourself up with an "exclusive" (ie; eliminating to some) strategy -- especially in the early stages. I believe the people with come and they will buy if you offer great product, excellent customer service (lacking in so many other places) and perhaps if you could highlight the Yogurt factor (lactose-free?). I know several people who are lactose intolerant and they will go ANYwhere (and pay anything!) to buy good quality yogurt.
Good luck on your venture!
 
Posted by: Emi_C Accepted Answer
10/29/2006 8:23 AM (CST)
Hi there,

I hope I can share some of my thoughts with you on this.

First of all, you are entering a very competitive market here and I agree that you need something different to stand out (be it communication channels or exclusive product quality), but the way you are approaching this is a bit risky.

You are talking about members and cardholders, shop memebership etc. but you are yogurt maker, not an airline. Its a yogurt shop and its FMCG industry, meaning it moves fast, people buy it and consume it that way. I have an image of your shop in my mind with all the shop members gathering there to enjoy yogurt :) its like that film Chocolat where it becomes sinful to indulge oneself in the taste of chocolate so they do it by hiding away in some discreet places :) where only chosen one can come and join in.

I understand your desire for 'exclusive' product but you are narrowing down your target market and loosing out on many potential customers. You can communicate 'exclusivity' in other ways, remaining available to everyone and building a strong brand. Exclusive brands are not neccessarily best selling brands. You need to sell a lot to turn it into a strong brand, you need to raise awareness, you need to create brand associations.

I dont see why advertising is not as good as PR for enhancing the brand and stronger positioning. Both of these plus all your other communication tactics should be integrated in enhancing your brand. M&S Food in the UK, completely transformed the brand's image from 'so and so' food to the best quality supermarket food. Advertising can do wonders, depending on how big your budget is, and it can do wonders for enhancing your brand equity.

Even Hagen Dazs, the premium brand is not THAT exclusive. Anyone can go in and buy it, no membership is needed, no invitation or anything. Your strategy should be,in my opinion, an exclusive product quality from which you can build on a stronger brand. This of your brand as a person and what kind of person you want to create. Exclusive, distant, unapproachable, judgmenta, arrogant... or exlcusive but friendly, approachable and easy to get on with, classy but down to earth....? :)

I hope this helps a little. The thing is you can do whatever you think is right, even if everyone disagrees with you, and you may get it right but it is about taking the risk. No risk no profit.

I hope this helps a little.
Regards,
Emi
 
Posted by: coupon man Accepted Answer
10/29/2006 2:01 PM (CST)
Better than the complication of country club style membership...just charge a TON. Be the Godiva of yogurt...

go high end on packaging, store design, etc...

and the membership thing IS a good idea...in the form of frequent customer cards and occasional mail and emails...keeping your card and name in customers' wallets...and sending them birthday cards with a free yogurt...ads for holiday cakes...etc...
 
Posted by: KathySmithFilms* Accepted Answer
10/29/2006 2:21 PM (CST)
Do I want to carry my Yogart Card with my Amex?
After your exclusive members are gone for the
day is that going to generate enough money
while you are in Phase I? Personally I love the
above ideas of being the Godiva of Yogart but
having it on your packaging and design serving
making each patron feel exclusive--manners, etc.
Kathy
 
Posted by: proeditor Accepted Answer
10/29/2006 6:51 PM (CST)
As the others have said, I believe you would be hurting yourself with the members-only idea. It is clever and different but that alone isn't enough to bring in the numbers of customers you'll need to get a good start. You will most likely need to sell to everyone and anyone.

An idea to make your shop feel high-end: Why not go with a Starbucks type approach, and make your shop a place where people would like to hang out and meet friends? Most ice cream shops are cold and barren with a few tables and uncomfortable chairs. Even the nice Hagen Dazs I go to isn't the kind of place I want to sit around in. Make your place a place where people want to spend some time, read the paper, see who else comes in. Maybe even serve great coffee (complimentary?) to go with that wonderful yogurt.

You could go with a totally modern, hip look or create an old-world café feeling. Depends on your budget, of course.

In advertising, emphasize the health benefits and good taste of your product. I am always looking for guilt-free ways to satisfy my sweet tooth. The new Hagen Dazs light flavors are wonderful! And, I just remembered, last time I was there and discussing with the owner how good the new flavors are, he handed me a little V.I.P keyring card, giving me 10% off for life. That little gesture really meant a lot to me, and of course, I love getting the discount, though it doesn't amount to much money on a small cone!

Also offer fabulous frozen yogurt birthday cakes. Model them after high-end bakery, beautifully decorated cakes.

You didn't mention where you'll be located. In a swank area? In a mall or shopping center or standalone?
 
Posted by: sykoyau Author Response
10/29/2006 7:43 PM (CST)
Whoa! It's my very first question I posted here and in less than 24 hours it's got so many replies. i love this community :)

Thanks to everyone who contributed. I agree with all, espeacially by doing the card membership thing limits potential customers and people nowadays have way too many cards for to carry in their wallets.

Additional info: I've been given a very tight budget to start off with(have to cut down on advertising and shop's interior design budget). The best yogurt ice cream which tasted the best (according to testers) were the ones where everything was made fresh. Yogurt was mixed with ice cream mix at its peak of incubation/fermentation when it is neither too sour nor too bland and instantly made into yogurt ice cream.

A marketer recommended me to add the "homemade" feeling and sell it as a homemade dessert bringing a more community like feeling to the shop. (which echoes the response by proeditor mentioning that most ice cream shops are cold and barren). Also by mentioning the process (it takes about 24 hours to create the best mix) it sends out the message of quality.

I'm also focusing a lot more on PR instead advertising but not scrapping advertising altogether. (a recommendation by a friend means a lot more than ads of the shop tells you). Prior to the opening, I'm thinking of inviting a couple of people from the press/food reviewers to taste. This will be my leak of information hopefully would create a hype by the opening.
 
Posted by: Stephen Denny Accepted Answer
10/29/2006 8:49 PM (CST)
OK, here's a thought. EXCLUSIVITY IS GREAT. Just not the way you're doing it (in my opinion).

How about doing a pre-launch campaign of delivering your ice cream to 100 influencers in your community -- sports, entertainment (radio), lifestyle TV -- and to a very small (like one or two) clubs under the campaign, YOU CAN'T HAVE IT YET.

Every touch point counts here: who delivers it, what they look like, how they dress, and what they say when they deliver it, how they get past gatekeepers and how you follow up. You want these people to talk about it and keep ordering it. So make it very easy for them to get it.

This is low budget -- you need a few (very good looking) people to deliver, you need a delivery vehicle that says, YOU CAN'T HAVE IT YET, and you need some peripheral PR. Get the DJ's and other media you sample to give you free on air mentions (just cross your fingers and ask for it. Have you ever seen a DJ? They like things like ice cream).

We did this delivering a very expensive personal communications device to CXO level officers in F500 companies inside a 100 lbs. safe, got past gatekeepers (we worked with the admins and had identical twin male models delivering)... and had a 30% success rate. Delivering a 100 lbs safe, into a C-level office, less than a year after 9/11 in New York and NJ.

You get the idea and I'm sure you can flesh this out to put more arms and legs on it. Don't limit your paying customers' ability to give you money. But the exclusivity thing is great.

Good luck!
 
Posted by: shghosh Accepted Answer
10/30/2006 5:13 AM (CST)
Apart from PR, do a co promotion with another already established exclusive brand- could be in apparel, electronics or food. Just ensure that the retail outlet of that brand is close to your retail outlet. Offer an ice cream tasting session ( similar to wine and cheese tasting) and put in a discounted entry fee for the brand buyers.

Alternatively tie up with some art/ sculpture gallery/ exclusive high end gym and do the same.

You could also do some Direct Marketing through Credit Cards- offering a icecream free for a couple provided the amount is swiped in the Card- to keep it exclusive do the tie up for the premium cards only.
 
Posted by: W.M.M.A. Accepted Answer
10/30/2006 10:35 AM (CST)
Several years ago, we launched "The Original New York Yogurt Company" in California. One of the first $5 hamburgers. The yogurt craze was strong.

Today, Gelatto, Yogurt stores are popping up everywhere, and the competition is stronger than ever. Isolationism is the last thing you would want to achieve.

You mentioned that you wanted to go the PR route. With minimal advertising...yeah, that's a normal thought, but tell us, please...What is it about your yogurt that makes you newsworthy? Why should a writer take the time/space to talk aboiut you? What is the differentiator that makes you so much better than all of the competitors in your market?

Just saying that you're open, and you have good stuff to eat is not good enough...where is the hook?


Randall
WMMA
 
Posted by: sykoyau Author Response
10/31/2006 2:27 AM (CST)
Thanks everyone for contributing. Think I've got enough to work with for now :)
 


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