Introduction
Pink Berry Frozen Yogurt is an innovative retailer, which started in Hollywood, California, in 2005. The company has over 55 retail shops spread in the Middle East. Pink Berry is one of the fastest growing global retail brands worldwide and continues to lead the way in the category. In this case, the company offers customers one of the best experiences globally and has specific products, inspirational designs, and outstanding service. The different flavors of the company and its premium toppings and daily fresh-cut fruit provide an irresistible refreshing taste and light. The company’s primary attributes that make it unique include exceptional customer service and store design. This report focuses on explaining the market segment served by the company. In addition, the report offers a clear explanation of the company’s competitive advantage with examples and evidence. The report describes Pink Berry’s unique selling proposition and analyzes the company’s business model. This report explains the benefits and disadvantages of the approach adopted by the company.
Background of the Company
Pink Berry Frozen Yogurt is a UAE-based organization that commenced its operations in January 2005 with a small store in Los Angeles, California. The company was initially inspired by a European yogurt brand, gelato, and played an immense role in acting as America’s ice cream pop culture and pastime. In 2009, the company opened its fast international retail outlet in the Avenues Mall in Kuwait. Over time, the company and its brand grew immensely across ten countries in Turkey, North Africa, and the Middle East. Today, Pink Berry operates over 300 retail outlets in over 20 countries worldwide and is still growing (Putr et al., 2020). Pink Berry is one brand that is synonymous with unwavering quality across its network of retail stores. The company commits continued mission for global expansion and strives to embrace a passion for uncompromising quality across its experience (Day, 2022). Pink Berry has a unique proposition and creates a distinct frozen yogurt product portfolio by choosing and blending so that they can have a good taste for the consumers.
The Market Segment Served by the Company
The market segment for frozen yogurt in the UAE is Millennial aged between 18-35 years. In this category, women are the most preferred target market because they primarily consume the product compared to their men counterparts (Bocken et al., 2020). Research demonstrates that customers aged between 18-35 years are the most buyers of frozen yoghurt. The study by IBISWorld further indicates that consumers account for almost fifty per cent of the total sales (Yotova, 2017). Therefore, targeting this market segment will be the right step to making the company more competitive and building its brand (Backaler, 2018). Although the strategy seems to target everyone, females in the age group are the most sought because studies indicate that women consume more yogurt than men. Thus, most yoghurt sales are skewed toward women because they are more mindful regarding their calorie and fat intake.
The Company’s Competitive Advantage
Pink Berry is a company with a unique competitive advantage that gives it a head start in the United Arab Emirates. In this case, Pink Berry is a known brand recognized globally. Besides the United Arab Emirates, Pink Berry is a leading brand in Qatar, the United States, Canada, and Kuwait. Therefore, it is a leading international brand that is well known for its quality, which gives it a competitive edge against its competitors in the industry (Backaler, 2018). Pink Berry is known for its healthfulness, quality, and brand reputation, representing considerable product strength. In addition, its yoghurt ingredients lower the aftertaste associated with low-fat and non-fat yoghurts making it a competitive product. Additionally, the company has a pleasing atmosphere in its retail outlets, making it a favorable shopping environment for its consumers. It offers top-notch customer services that are unique to its friendly stores. Its uniform products and services represent considerable strengths of the brand (Bocken et al., 2020). Pink Berry is a company that nurtures an entrepreneurial spirit that gives it the courage to take calculated risks in offering solutions and being innovative, which gives it a competitive edge over its business rivals.
The Company’s Unique Selling Proposition
The unique selling proposition of Pink Berry UAE includes uncompromising quality, entrepreneurial spirit, emotional connections, and customer delight. These values or qualities make the company unique and superior to its competitors. For example, its uncompromising quality ensures that it continuously raises the bar on the quality of its exceptional products and everything else it does (Day, 2022). In addition, its emotional connections foster meaningful linkages between its teams, communities, and consumers. Its value of customer delight ensures that it has the power and drive to create small moments which delight and surprise the customers. In this case, the company seeks to satisfy its customers with an experience of outstanding customer services, inspirational store designs, and specific products. In addition, the company always strives to serve with gratitude and humility, which ensures that customers have a reliable partner (Putri et al., 2020). The business promotes an entrepreneurial spirit that seeks to offer solutions to consumers. In addition, Pink Berry provides innovative products that the customers want with a sense of urgency.
Analysis of the Company’s Business Model
Like its selling proposition, its business model was unique to make the product competitive in the market. In this case, the company first started a product made of fresh fruit toppings and natural milk, which is rare for most companies that manufacture similar commodities. This sweet and healthy product became popular among consumers and gained customer loyalty. In addition, the product was manufactured as a low-calorie product with only 20 calories. Since most consumers want products with low calories, it became popular with customers (Day, 2022). The innovation and benefits that the product brought to the market made it have a special price that was favorable to consumers. In addition, its four different sizes were priced at an average of 5 US dollars. Therefore, this business model was meant to make the products affordable to most consumers. The layout of the retail outlets played an immense role in the customers’ experience (Putri et al., 2020). This company’s business model ensures that its stores are unique and special, with suitable interior designs primarily targeting millennials.
Whether the Strategy has Been Successful Compared to Its Competitors
This strategy has been successful and has given Pink Berry a head start advantage over its competitors in the industry. For example, Pink Berry’s pricing strategy ensures affordable product cost is among the best winning formulas in the ever-competitive marketplace. Therefore, its prices average approximately 5 US dollars which is affordable for most people in the market. Most competitors, such as Yogurtland, Red Mango, and Handles, have costs above the ones Pink Berry offers as can be seen in Table 1. With competitive prices, Pink Berry does not compromise on quality, another strategy that seems to work against the rivals (Bocken et al., 2020). High quality strategy ensures superior brands at fair or affordable prices. Another strategy that appears to pay off is the unique and attractive interior design with the right ambiance and colors, such as pink and green. In an ever-competitive business environment, consumers are more attracted to interior design colors than ever (Putri et al., 2020). For example, most Millennial want a shopping experience that reflects their tastes and preferences. In addition, Pink Berry has reflecting glass surfaces that make the interior more attractive.
Table 1: Pink Berry Alternatives and Competitors
The Benefits and Disadvantages of the Approach Adopted by the Company
There are various benefits of the approach adopted by the company. For example, it offers outstanding customer service to its esteemed customers, making it competitive, and has an inspirational interior design that attracts consumers. In this case, its interior is made of attractive multi-colors such as green and pink, which fascinates the place. Another benefit is that all its products are made from the best-tasting and highest quality ingredients, which makes them superior (Backaler, 2018). Another advantage is that all Pink Berry products are low-fat or non-fat commodities. Therefore, they are healthy products and suitable for all people, including those who are dieting, as they do not have many calories to make someone increase weight. The company is usually open and transparent with its product details and supports those who want to limit their intake of fats and calories. However, the strategy adopted by Pink Berry has various demerits (Yotova, 2017). For example, Pink Berry has a limited number of flavors because of its strict adherence to quality standards. Its flavors range from four to six, entirely below its competitors, such as Yogurtland, which offers wide varieties.
Literature Review
Besides Pink Berry, the UAE market offers other frozen yogurt shops, including Yogurtland, Shakeaway, Red Mango, and Yogurberry. Therefore, the market is very competitive and needs a company like Pink Berry that is innovative with a customer-centric attitude that offers uncompromising quality (Day, 2022). In contemporary society, frozen yogurt has become one of the most sought products because it is a delicious dessert, particularly among Millennials. Frozen yogurt is a unique commodity because it does not disrupt the diet plans of consumers. For example, the low-fat delight offered by Pink Berry is perfect for fitness enthusiasts who like chilled desserts. The UAE has a variety of dessert parlors, which provide frozen yogurt in different flavors with a choice of tasty toppings (Yotova, 2017). Dubai has plenty of locations where customers can get their favorite frozen yogurt brand. For example, the Dubai Mall is one location where one can get the product in a Yogurtland outlet. Pink Berry brand is available in Jumeirah 1 in Dubai.
Conclusion
In conclusion, Pink Berry Frozen Yogurt started from humble beginnings in Hollywood, California, in 2005. Since its inception, the company has continued to expand in international markets such as the Middle East. One of its most important markets in the Middle East is the United Arab Emirates (UAE). In this case, Pink Berry has established several outlets in Dubai, Sharjah, and other parts of the Emirates. The company has succeeded in the UAE through its unique selling proposition, such as uncompromising quality, competitive prices, and superior interior décor quality. Its business model is built around customers striving for high-quality services at favorable prices.
References
Backaler, J. (2018). Case studies: Influencer marketing best practices from around the world. Digital Influence, 171–186. Web.
Bocken, N., Morales, L. S., & Lehner, M. (2020). Sufficiency business strategies in the food industry—the case of Oatly. Sustainability, 12(3), 824. Web.
Day, G. S. (2022). Advanced introduction to marketing strategy. Edward Elgar Publishing, Inc.
Putri, A. R., Nisa, I. K., Yee, L. H., Kee, D. M., Min, K. H., Yi, L. S., & Xin, L. J. (2020). J.CO coffee & donuts marketing strategy. Asia Pacific Journal of Management and Education, 3(1), 72–81. Web.
Yotova, M. (2017). Ethnographic Heritage as a branding strategy: A case study of yogurt in Bulgaria and Japan. Global Economic Review, 47(1), 47–62. Web.