Rrg happy ice cream

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Happy Ice Cream Makenna Morris, Justin Benedict, Sloan Stryker, Kimberly Czechowski May 2, 2016

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Table of Contents Executive Summary..................................................................................................................................3 Literature Review………………………………………………………………………………………………………………………..………….5 Research Questions/Objectives...............................................................................................................9 Methodology..........................................................................................................................10 Qualitative Quantitative Data Analysis and Findings..................................................................................................................................12 In-depth Interviews Participant Observation Projective Techniques Qualtrics survey Limitations.............................................................................................................................21

Qualitative

Quantitative

Conclusions/Recommendations..............................................................................................23 Appendices.............................................................................................................................27 References..............................................................................................................................35

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Executive summary Melt Ice Creams, located in Fort Worth, Texas, has recently commissioned the Radcliffe Research Group (RRG) to complete a quantitative research study. RRG sought to uncover new insights regarding what customers want from the brand, as well as what they want to improve upon after Melt's move to Magnolia Avenue. RRG conducted preliminary research, extensive qualitative research and a quantitative Qualtrics online survey. The Radcliffe Research Group (RRG) conducted in-depth interviews, projective techniques and observations of current Melt Ice Cream consumers to examine consumer perceptions of and desires related to the brand.

Findings suggest that Melt consumers are very pleased with their Melt experience, but they hope to see a few things implemented into the new Melt. Qualitative and Quantitative research was conducted to determine what aspects of Melt appeal to the current Melt consumer and what consumers would like to see Melt improve upon. This information is crucial for Melt to capitalize on their future relocation to Magnolia Avenue. Data was collected through in-depth interviews, projective techniques, observations and survey.

Topic Proposal: Melt would like to better understand the tangible and intangible characteristics that current customers look for in an ice cream parlor, and the associated experience. Since little information is currently available on the topic, this research will help Melt avoid costly target marketing and communication mistakes, and properly adjust to the upcoming move to Magnolia Ave. Research will examine what current consumers consider when making ice cream purchases, what draws these consumers to melt, what consumers would like to see Melt improve upon, and how Melt can meet the needs of its consumers.

Target Population: Melt believes that the target population will consist current customers, predominantly females and families, ages 20-34 (in reality population may be more broad).

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How we will access the target market: This target population can be easily accessed on TCU's campus, around West 7th Avenue, Magnolia Avenue, and other trendy areas of Fort Worth. The target population can also be accessed through social media platforms that Melt engages consumers on and online review sites such as Yelp.

Central Research Questions/Subquestions: What are current Melt consumers’ associations/experiences/behaviors related to ice cream consumption?

• What ice cream qualities do consumers prefer?

• Where do consumers prefer to eat ice cream?

• Who do consumers like to eat ice cream with?

• What are consumers best memories associated with ice cream?

• What background music/ environment do consumers associate with ice cream?

• What smells/aromas do consumers associate with ice cream?

What are current Melt consumers’ perceptions of the brand?

• What sets Melt apart from its competitors?

• What characteristics do consumers associate with Melt?

• How do Melt consumers interact with the brand?

How can Melt improve in the future to capture more of its target market?

• What would consumers like to see MELT change/improve upon?

• What are consumers’ attitudes about Melt’s move to Magnolia Avenue?

Literature Review The ice cream industry is a dynamic, ever changing, multi billion dollar industry (IBISWorld, 2015). It is also an industry that is heavily saturated with small businesses, making up over half of ice cream producing companies. For this reason, it is crucial for small businesses, such as Melt to gain a comprehensive understanding of the industry itself, the competition in the market, current industry trends, as well as the tangible and intangible characteristics of an ice cream parlor that customers desire.

Ice cream is an $8 billion industry with profits of $361.4 million annually (IBISWorld, 2015). As a dynamic industry heavily influenced by external factors such as the price of milk, it experienced little growth (2%) from 2010-2014 and, in part due to

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health trends in the U.S., is expected to experience negative growth through 2020 (Ice Cream Industry, 2015). The ice cream industry is heavily saturated with small businesses, which make up more than half of ice cream producing companies.

Although competition is moderate in the industry there are some major players that control a significant portion of the market share, including Unilever, Nestle, and Blue Bell Creameries that control 40% of the market share (Ice Cream and Frozen, 2011).

Industry analysis shows that 352 plants operate in the ice cream & frozen dessert area, employing 18,000 people (Ice Cream and Frozen, 2011). Despite some dominant companies, the industry is a small business oriented industry , with 40% being regional and local (Ice Cream Industry, 2015). Moreover, 63% of plants employing less than 20 workers, while only 17% employed more than 500 workers (American Industry, 2011).

As of 2010, Texas was the third largest ice cream producing state (Ice Cream and Frozen, 2011). Nearly half of all purchased ice cream is retail ice cream, with novelty ice cream in second with 23% (Ice Cream Industry, 2015). Market saturation of ice cream in U.S households is an estimated 90%. Moreover, the annual consumption per capita in the late 2000's was over 21 pounds of ice cream (American Industry, 2011). In other words, 90% of American households consume over 21 pounds of ice cream every year.

Melt has many competitors within the Fort Worth Area. Although Melt seeks to reduce competition by partnering with different dessert and non-dessert establishments in the area, there are a few outstanding shops in the area with immense popularity such as: Sweet Sammies, Steel City Pops and Stir Crazy. All three competitors can satisfy a sweet tooth, however, they all offer a different experience and dessert items. Sweet Sammies, located in the West 7th area, offers a unique variety of treats. They are known for their Blue Bell ice cream and homemade cookie sandwiches. They also sell individual scoops of ice cream with the option to put it in a cup, brownie bowl or a cone. Sweet Sammies offers more options to its consumers and has a more central location than Melt. However, Sweet Sammies offers less seating and less health conscious options (Sweet Sammies). Steel City Pops is a homemade popsicle shop located in the West 7th area. It has an iconic picture wall similar to Melt's and offers a trendy, cold treat (Steel City). Like Melt, Steel City Pops has a very seasonal market. Steel City offers plenty of outdoor seating and offers many eclectic flavors. Steel City Pops also a good mixture of health conscious and non-health conscious options (Steel City). Stir Crazy is a Bakery on Magnolia Street. They offer a sweet and savory baked goods on their menu. Their slogan is "Just like grandma made, if what grandma made kicked ass" (Stir Crazy). They do not offer any cold treats like the other establishments do, however, they are located near Melt's new location on Magnolia, therefore making it a competitor.

Research has been conducted on consumers' favorite ice cream flavors. Surveys provide information on customers' demographics and psychographics (such as ideology) in regards to ice cream market trends. For example, in the South, Chocolate is slightly preferred to vanilla, (28% to 26%) (CBS News Poll, 2010). "Other" is the third most popular flavor preference, which indicates the importance of providing new, unique flavors to consumers. It is also important to note that men prefer vanilla to chocolate, while women prefer chocolate to vanilla (CBS News Poll, 2010).

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Additionally, market trends indicate trends indicate when and how consumers prefer to eat ice cream. For example, according to Mintel (2015) an internet survey of 1,863 internet users ages 18+ found that most people eat ice cream to satisfy a sweet craving, followed by consumption for a snack and for special occasions such as a birthdays. To cool down from the hot weather is the sixth most popular reason for eating ice cream, a significant statistic for Texas ice cream shops. Additionally, 30% of ice cream consumers purchase ice cream for sole consumption (Mintel, 2015). This can further assert customers desire for unique ingredient rich flavors.

Consumers are divided when it comes to flavor preference between traditional flavors and experimental flavors. Studies indicate that the taste of ice cream has also proved to be more important to consumers than texture. A 2010 survey on flavor preferences found that 65% of consumers prefer plain flavors, while 64% prefer ice cream with chocolate/candy bits, and 28% prefer fruit flavors, 18% prefer savory/sweet flavors, and 8% prefer exotic flavors (Spoonable Dessert, 2010).

Melt uses the color yellow as a branding signature because it is highly noticeable and because the color yellow represents happiness, this has been successful because customers make a subliminal association when driving by or when taking a picture by the yellow wall (Photos: Inside Melt).

Melt features 6 flavors which are changed seasonally. Several of Melt's flavors feature collaborations with local companies. For example, MELT's berry basil flavor uses organic jam from Fort Worth's Moore Jam. Customers can choose from a cup, pint, or waffle cone, which are made daily (Melt Ice Creams).

Valuable consumer opinion and hindsight for Melt can be found on Yelp, these insights often reveal the impact of a business' success. Of their 154 reviews currently on Yelp, Melt has a four star rating, and an inexpensive price rating (Melt Ice Creams - Southside). The Yelp reviews are overwhelmingly positive with many people expressing a personal connection to the brand, especially the organic flavors and the "pictureworthiness" of the physical location, namely the yellow wall. While there are some benches, and a designated area outside to eat, this is an aspect of the parlor that is lacking, as many people enjoy eating ice cream while they enjoy the weather (Melt Ice Creams - Southside).

Additionally, Fort Worth Funky, a blog that highlights restaurants and activities going on in Fort Worth, featured Melt on their sight as one of many up and coming establishments in the Fort Worth area (Fort Worth Funky 2015).

Through the analysis of the ice cream industry, competition, current market trends, and Melt specifically as an ice cream parlor, it becomes clear just how complex the industry is, and all of the small factors that must be taken into account by Melt to capitalize on external opportunities, increase market share, and provide customers with the ice cream experience they desire.

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SWOT Analysis

STRENGTHS: As a brand, Melt has a strong image in the Fort Worth community. It is easily visually identified by its bright color yellow and striped patterned. Melt is known throughout the Dallas/Fort Worth area for its unique flavors, which cannot be replicated by its competitors. The ice cream itself is made with "healthy" ingredients such as organic herbs and hand-stretched peppermint. It also markets itself towards customers with dietary restrictions/preferences by incorporating vegan ice cream options. This is a huge strength for Melt because not only does it make the brand distinguishable, but it allows itself to appeal to families, health-fanatics, and "trendy" young-adults. A combination of its unique flavors, "healthy" options, and good branding results in a very current, relevant, and "trendy" brand. It is popular among families and young adults and has a strong social media presence.

WEAKNESSES: While being on trend may be advantageous in the moment, there can be longterm disadvantages associated with it, as trends change. While Melt's rotating menu is good for novelty and variety-seekers, it also means that customers may not be able to eat their favorite Melt flavor at any given time of the year. The variety of flavors may also be viewed as a weakness as there are only six available flavors at a time, while other ice cream parlors often have upwards of a dozen flavors. In terms of its physical space, Melt has a small outdoor area, but seating is very limited. Melt ice cream is also marginally more expensive than its competitors in the market with $4.50 per scoop.

OPPORTUNITIES: Magnolia, Melt's future location, is experiencing a state of growth in terms of both customers and businesses expansion. Further, there are no direct ice cream competitors in this region of Fort Worth creating a significant opportunity for Melt.

Additionally, there is a national cultural movement towards health trends. Research indicates that vegan ice-cream is becoming increasingly popular, resulting in more sales for these non-dairy products. This indicates that as customers become more aware of health benefits (such as eating locally and organically) their purchasing decisions reflect it. This presents an opportunity for Melt by making it more relevant in the eyes of the consumer. The price of milk has declined significantly over the past 5 years and seems to be stabilizing. Opportunity to join industry associations such as the National Ice Cream Retailers Association, or the Dairy Management Inc., to display ingredient transparency and integrity to customers.

THREATS:

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Threats include a national decrease in ice cream sales and seasonality of ice cream consumption. More specifically to Melt, Magnolia (Melt's future location) has a large amount of competition in the food industry. While there are no other ice cream shops, potential customers are presented with a variety of food options such as coffee, desserts, and a broad selection of restaurants. In addition to competition within the Magnolia vicinity, Melt also competes with national brands in the form of store-bought ice cream. Increase in consumer desire for convenience has resulted in a growth in packaged to go ice cream, smoothies, and other convenience based frozen desserts.

Contrary to this trend, Melt is much more tailored to a sit down experience.

Research Questions/Objectives Research Objective: Research will examine what current consumers consider when making ice cream purchases, what draws these consumers to Melt Ice Creams, what consumers would like to see Melt Ice Creams improve upon, and how Melt Ice Creams can meet the needs of its consumers.

Central Research Questions: 1. What are current Melt consumers’ associations/experiences/behaviors related to ice cream consumption?

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What general types of ice cream do consumers prefer? (Flavors, texture, sweetness, combination, cup or cone)

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Where do consumers like to eat ice cream?

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Who do consumers like to eat ice cream with?

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What are consumers best memories associated with ice cream?

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What background music/ environment do consumers associate with ice cream?

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What smells/aromas do consumers associate with ice cream?

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2. What are current Melt consumers’ perceptions of the brand?

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What sets Melt apart from its competitors?

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What attracts consumers to Melt?

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What is the relationship between atmosphere and consumers perception of Melt?

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What is the relationship between available seating and quality experience?

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With what frequency do customers interact with the Yellow Wall?

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What is the relationship between consumers and Melt's social media platforms?

3. What do current Melt consumers want from the Melt brand/experience?

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What would consumers like to see MELT change/improve upon?

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What attracts consumers to Melt's competitors?

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What incentives can Melt provide to attract new customers?

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How can Melt improve as a brand to capture more of the market share in the future?

Methodology Qualitative Design: Extensive data was collected utilizing three techniques: in depth interview, projective techniques, and participant observations. In-depth interview were chosen as a way to gather valuable insight by allowing participants to be comfortable (through the use of follow-up questions, affirmation, and friendly interactions). Additionally, it allows for conversational and informational probe questions. A semi-structured interview was designed with a general interview guide that allowed for follow-up questions. Participants were first asked to fill out a

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Participant Data Sheet (see Appendix H) in order to gather basic demographic information. Then the researcher followed an interview guide (see Appendix I) to assist with the in-depth interview. Each interview lasted from 30 minutes to one hour. Additionally three projective techniques were constructed with the intention of understanding consumers’ deep and personal associations and perceptions of the brand. Observations were also conducted before and after the interviews with both individual participants and participant groups. The researchers were able to witness consumers’ behavior. Consumers’ interactions with the ice cream, Melt employees, and each other were documented. This allowed for an authentic selection of different perspectives.

Sampling: Research was conducted with the intention of finding common behavioral themes within a population of current Melt consumers. With this population in mind, the sampling frame consisted of randomly selected Melt consumers that entered the parlor between 2:00 and 6:00 pm on Saturday, March 19th, 2016. Because this sample is a non-probability sample, the chosen sampling technique was convenience sampling. As a result, 10 random consumers (ages 18-31, male and female, of various ethnicities, etc.) were asked to participate, reflected by the demographic data collected.

Data Analysis: Data was collected through the use of the participant data sheet. When developing the data sheet, questions were divided into subsections (basic info/home life, product preferences, consumer habits, opinions about melt, and projective techniques). Analysis was conducted by collecting and interpreting similar answers and opinions. Overall conclusions were determined

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by studying common themes. To do this all of the responses were compared and organized into two categories:common themes and outliers. In this way, important insights were identified.

Quantitative Design: This research was conducted using a survey designed on Qualtrics web-design software.

Various quantitative question designs (close-ended questions, open-ended questions, ordinal scales, likert scales,a forced rankings) were used to produce the best results. Questions were designed to answer central research questions and branching was used to generate more specific data. Prior to distribution, the survey was tested on various volunteers to evaluate the mechanics of the survey as well as determine any possible errors or limitations.

Sample: In total, the survey was accessed by 916 people and completed by 621 participants, for a completion rate of 67.79 percent. Of the respondents, 85 percent were male and 15 percent were female. Participants were encouraged to respond to the questionnaire with the incentive of having the chance to win one of 5 $20 gift cards. The survey was distributed to these participants through a variety of outlets. Facebook was used to reach TCU students and campus organizations as well as local populations (by utilizing neighborhood Facebook group pages).

Other Facebook group pages included fraternity and sorority, TCU Drumline, Ultimate Frisbee, and various other student organizations. Melt was asked to distribute the survey as well.

Personal social media accounts and word of mouth were also used to recruit participants.

Data Analysis:

12 Data was analyzed through the comparison of various statistics and answers. Multiple

cross-tabulations were conducted to determine the relationship between variables. As a result, various correlations and relationships were collected. Graphs, word associations, charts, and other visual tools were used to present and compare data. Conclusions were then drawn from the data, statistics, and cross-tabulations. From these conclusions, a series of recommendations were created.

Data Analysis and Findings In-depth Interviews: Qualitative research methods utilized throughout this study provided a basis for obtaining crucial information for Melt’s efforts to improve and maximize popularity before and after the move to Magnolia Ave. Our primary qualitative research method, in-depth interviews, sought to better understand why current customers choose Melt over competitors, and how they perceive the brand. Interviews are also useful in determining customer preferences regarding Melt's products, services, environment, etc. Information covered in the interviews can be divided into topics: basic info/home life, product preferences, consumer habits, opinions about Melt, and projective techniques.

Analysis of participants' basic information about themselves and their home lives unveiled general demographics common of Melt customers. While most participants grew up around popular American desserts, primarily ice cream, cake, cupcakes, and cookies, one participant did not grow up around sweets, and only indulges in them when out with his girlfriend. Another participant noted having grown up with ethnic desserts such as "Chile Pops".

This could create a unique opportunity for Melt to experiment with ethnic flavors in the future.

13 Analysis of consumer habits can help Melt better understand characteristics that lend

themselves to a person becoming and staying a Melt customer. Participants reported a varying degree of how often they go out to eat ice cream ranging from “not often” to twice a week. The majority of participants' memories of ice cream growing up involved eating ice cream with family, primarily for holidays/special occasions. Melt consumers have hobbies ranging from hiking, to musical theatre, to auto repair, to crochet, to basketball. All participants claimed that they eat ice cream with friends, and a few also claimed to eat ice at home. The majority of participants were health conscious, choosing organic options over non-organic options if available, while a few participants described themselves as "average" in terms of health consciousness.

Analysis of participant product preferences provides insights that Melt can use to better tailor its products to its customers. Of the participants interviewed, crème brule was the most popular flavor, followed by chocolate and piece of cake, with cinnamon waffle cone as the most popular containment option (cup or cone). Interview participants perceived a relationship between summer and fruit flavors including sorbet, while associating chocolate, mint, cinnamon, and creamier flavors with winter. Most participants had engaged with Melt on social media before. Participants expressed the main reasons that they choose Melt were, the local partnerships, unique health conscious flavors (vegan flavors), the atmosphere/vibe, and recommendations from friends. Two participants from Dallas visited Melt because it was recommended as one of Fort Worth’s best dessert spots, by their local friends, demonstrating a strong word of mouth advertising presence for the brand. They visited Fort Worth just to visit Melt and the Magnolia area.

Analysis of interview participant opinion of Melt uncovers areas in which Melt is operating effectively and efficiently as well as areas in which Melt is not operating effectively

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and needs to improve. Melt has created a unique, pleasant environment that contributes to Melt’s niche brand personality. Additionally, consumers appreciate Melt’s unique physical features such as the yellow wall, chalkboard, wood paneling interior and unique external design.

These factors contribute to the brand’s image. This also generates more photo opportunities at Melt, which increases the “shareability” factor on social media as it provides unique and interesting photo opportunities. The most popular social media platforms among interview participants were Instagram and Facebook. Many interview participants had taken a picture in front of the "yellow wall", and one participant said that she was featured by Melt on Instagram.

She was very excited that Melt engaged with her on social media. She said raved about Melt and their dedication to their followers. Some of the survey participants unmet needs are seating/space, topping, and other dessert options. Seating was the most recognized area in need of improvement. We recognize that the new location will have the potential for more seating. RRG would like to affirm that that infact is what consumers are looking for. Participants perceived Melt's closest competitors as: Steel City Pops, Marble Slab, Sweet Sammies, and retail ice cream (grocery stores).

Participant Observation: There was a consistent flow of customers walking in and out during the four hours while in-depth interviews, projective techniques and participant observations were being conducted.

There were approximately 15 to 20 people in the shop at all times eating or ordering ice cream.

There were families, couples, high school students, TCU students and a few elderly (55+) women. The majority of customers preferred to sit inside. If there were no seats available inside, they chose to stand inside. This was likely due to the cold and rainy weather of that day.

This caused a traffic problem of consumers trying to get in line, pay for their ice cream and eat

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their ice cream. Most of the customers asked to taste multiple flavors before they chose a flavor. Many consumers were intrigued by the wide range of unique options and did not feel comfortable deciding before they had tasted all of them for received advice from a friend or employee.

Additionally, most customers preferred a cone over a cup. While customers ate their ice cream, they were mostly silent and visibly enjoying their dessert. Customers had conversations about the flavors, tastes and aromas. Customers engaged in conversation with each other primarily when their ice cream was gone. During our time spent at Melt, we did not see any customers come in by themselves, although we did speak with several regulars (customers that visit Melt at least 3 times a month).

Projective Techniques: Projective techniques included multiple image completion exercises conducted in participant groups and individually with researchers. The first exercise asked participants to describe an image of a typical Melt customer, and the image of Melt if Melt were a person, as well as Melt's closest competitor in the mind of the participant. These projective techniques unveiled valuable information about customer's perceptions of the brand. Most participants felt that if Melt were a person, they would be unique, quirky and fun. Interestingly, participants described Melt's person as "hippie" instead of hipster. It seems that health conscious aspects to the brand give it this connotation in consumers’ minds. Some participants compared Melt's person to famous celebrities such as Lady Gaga, Zoey Deschanel, and Taylor Swift. They are young and popular but not in the norm. According to our participants, all three of these celebrities are “unique”, “fun” and “colorful”. Participants described the typical Melt customer as: young, with ages ranging from 15-35, fun, friendly, free-spirited, family oriented, and health

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conscious. Participant envisioned Melt customers eating ice cream both inside and outside, with setting ranging from Melt, to a picnic. Both of these visions include the outdoors and a more relaxed atmosphere. The vast majority of participants contended that they would like to be Melt's friend in the projective scenario. The majority of participants envisioned Melt's competition's person in very similar ways to Melt's. A few however, describe the competition's person as more average or "run-of-the-mill".

Online “Qualtrics� Survey: After completing the quantitative Qualtrics survey, RRG extensively analyzed and interpreted the data obtained from the survey to draw insights about Melt and answer the previously stated central research questions. First and foremost, RRG established basic characteristics of a typical Melt customer. Sample statistics show that the vast majority of survey respondents were between the ages of 18-21, Caucasian and female. In addition, 91 percent respondents that answered that they were currently in school, responded that they are current students at TCU. The data indicates that 94 percent of respondents reported hearing about new restaurants in the area through word of mouth advertising and social media. In contrast, traditional advertising media are used less frequently by local consumers to find new restaurants. A cross-tabulation of those same factors with respondent age shows that respondents ages 18-21 (college students) value convenience and price slightly higher than respondents ages 22-25 (recent graduates) when choosing a restaurants or food option. When asked what are the most important factors when choosing a restaurant or food shop, respondents reported that the atmosphere and presence of nice staff are two of the most important factors, followed by price and convenience. In contrast, other factors, such as "kidfriendly" or "walk-ability" were relatively unimportant to respondents. While charitable giving was not reported as a major reason that respondents choose a restaurant, 69 percent of

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respondents said that they, to some degree, are more likely to purchase from a brand that gives back to the community.

Next, RRG sought to determine why consumers choose Melt over competing brands. In other words, what is the brand's competitive advantage in the local ice cream market? Of the respondents, 69 percent said that they go to Melt for the variety of flavors, while 64 percent reporting for the “happy experience” that they have at Melt. Moreover, 59.17 percent considered the brand to be “excellent” and 58.58 percent of respondents gave Melt 5 stars, more than any other competing brand in the area. Nice staff and atmosphere are the most important factors to respondents when choosing a restaurant or desert store (85 percent consider a "nice staff" to be "very" or "extremely important". 84 percent consider "atmosphere" to be "very" or "extremely important"). When asked the first word that comes to mind when thinking about MELT, the most recorded responses were "yellow, unique, creative, and yummy".

This data verifies that Melt has indeed created a strong brand image among consumers that are aware of the brand. Moreover respondent's association between Melt and "yellow" shows how the brand's mission statement, core values, and brand image are working effectively and in cohesion. When asked how respondents feel about specific aspects of the brand, the most liked characteristics of Melt are the quality of ice cream, flavor options, atmosphere, and staff (in that order). Sixty-nine percent of respondents (45 percent somewhat agree that they're more likely to purchase from a company that gives back. 24 percent strongly agrees) reported that they are more likely to purchase from a company that gives back to the community in some way, while, in contrast, less than one percent responded that this was not true. While this is not a major reason respondents choose Melt over other competitors, it definitely does not hurt consumer perception of the brand, customer retention, or ice cream sales. For a dessert store, philanthropy could be a subconscious justification for consumers indulging in ice cream.

18 Regarding Melt's move to Magnolia Avenue, 64 percent of respondents reported that to

some degree, they would be more likely to go to Melt after the move. With Melt’s strong competitive advantage in mind, founded on a positive, quality customer experience, atmosphere, and product, there are some factors weighing against the brand that must be recognized. While 40 percent of respondents reported purchasing ice cream from an ice cream parlor or shop, 49 percent reported still purchasing ice cream from a grocery store. For this reason, it is crucial that Melt creates attractive incentives to make consumers sacrifice the convenience of retail ice cream purchases.

RRG then focused on analyzing and interpreting data to better understand the relationship between consumers and the Melt brand on social media. The top social media platforms for Melt customers (based on follows) were Facebook (24.03 percent) and Instagram (18.83 percent). There is a significant drop in follows after those platforms, with others like Twitter only yielding a 1.95 percent following. Although a small portion of respondents (15 of 49 whom selected "other") reported Yelp as the way that they hear about restaurants and dessert options, it is a social media platform that is perhaps under recognized and under utilized.

It should also be recognized that the majority of Facebook and Instagram users are daily users, while the majority of Pinterest users as well as other platforms are predominantly monthly users. Therefore, the frequency of posts from Melt on these platforms should be higher than on others. A cross-tabulation of preferred social media platforms and frequency of consumer interaction with Melt’s physical location (yellow wall, chalkboard, etc.) found that Facebook users interact with Melt the most, followed by Instagram and Pinterest. Another cross-tab concluded that consumers that follow Melt on Instagram see more posts from the brand (33 percent see posts 1-3 times a week) than Facebook users that follow melt (33 percent see it less than once a week). Moreover, 89 percent of Instagram users generally like the Melt

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posts that they see, and 80percent of Facebook users like the posts they see from the brand.

RRG can conclude that Melt has an opportunity to create stronger more appealing Facebook posts to increase this statistic. Another cross tab found that of respondents who use social media to find new restaurants, 80 percent have heard of Melt. While it seems that Melt’s social media presence may be responsible for a strong brand awareness, Melt ranks 6th in this category behind competitors Nothing Bundt Cakes, Braums, Steel City Pops, Marble Slab, and Sweet Sammies. While the majority of respondents have heard of Melt, only 56.52 percent have actually been to Melt. Melt can improve this statistic by finding new ways to push consumers from brand awareness to purchase decision. While perhaps the most iconic aspect of Melt’s physical location that connect customers to the brand is the “yellow wall”. Despite the perceived popularity of the wall as a photo op, nearly half of respondents (44.08 percent) reported never interacting with the yellow wall, while only 11.83 percent claimed to interact with the wall every time they visit Melt.

Finally, RRG shifted focus to ways in which Melt can improve, to provide consumers with the best product and service possible. When asked explicitly how Melt can improve, 59 percent of respondents selected additional seating and outdoor tables and benches. These variables outweighed others, such as more flavors, by a large margin. A cross-tab unveiled that these variables were valued even higher by those who choose to go to Melt for a happy experience with over half saying that the brand can improve by offering additional seating as well as outdoor seating. While Melt prides itself on its unique, health conscious, locally sourced flavors, only 36 percent of respondents like creative ice cream flavors, while 60 percent prefer traditional ice cream flavors. Almost half (49 percent) of respondents who prefer traditional ice cream flavors believe that Melt could improve by increasing flavor variety. While the brand should not sacrifice the competitive advantage it has carved out in its market through its flavors

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and quality, RRG feels that Melt could draw in more customers and increase customer retention by providing traditional or classic flavors, and a variety of those flavors. With the demography of surveyed respondents in mind, almost half of respondents (41 percent) report attending all TCU home football games. Moreover, 32 percent of respondents reported being extremely likely to purchase ice cream from Melt at a TCU home football game, 76 percent of respondents reported that they were, to some degree, likely to purchase it, and only 13 percent said that this would be unlikely. This is clearly a great opportunity for the brand to capitalize on if a partnership with TCU should become possible.

Limitations Qualitative Over the course of this qualitative research study conducted at Melt, researchers encountered a handful of limitations that impacted research findings, including inclement weather, inventory issues, and time restrictions. The weather conditions on the day research was conducted were not preferred for consuming ice cream. It was around 60 degrees and very windy, which made a frozen dessert less desirable for Melt consumers. While the study was conducted during normally busy hours of operation, there were fewer customers present than observed during the class visit likely due to the weather.

Another limitation RRG experienced was that Melt ran out of their daily special late in the afternoon. Researchers are unsure of the impact of this on the purchasing decisions of Melt consumers for the rest of the day. This did, however, reveal the extreme popularity of the daily special flavor and that Melt consumers are willing to branch out and try new and unique flavors.

21 The biggest limitation that impacted research was a significant time restriction. Due to

scheduling and availability issues, researchers did not spend an entire business day at Melt.

Researchers were on the premises from 2:00-6:00, RRG believes the research findings would be more thorough and rich if the whole day was spent there. During the time spent at Melt, researchers were able to conduct 10 in-depth interviews, participant observations, and projective techniques. This provided researchers with sufficient information to analyze and draw conclusions from, however, RRG recognizes that they could have split up shifts so that they were able to conduct research over an entire business day at Melt, or over multiple days. Melt's Saturday hours are from 12:30-11:00, which would mean that researchers each would have had to be at Melt for approximately 2.5 hours. This would have provided researchers with more time to gather a higher quantity of qualitative results that would be more likely to represent the population as a whole.

For future groups researchers suggest allowing a significant period of time to execute qualitative research methods. This will lead to more thorough, extensive, and in-depth information. Also it is important to try and predict limitations before hand and avoid them if possible. For example, try to conduct research on a warm and sunny day because it is likely that there will a higher number of consumers. RRG suggests future researchers conduct research on multiple days with varying weather conditions to observe similarities and differences. Also, it is crucial to provide participants with compensation, consumers would not be nearly as willing to participate in our interviews unless they were given Melt gift cards.

Quantitative Throughout the course of the quantitative research RRG encountered a handful of limitations. First, RRG will discuss the limitations regarding the demographics of survey participants. The greatest limitation was the lack of diversity and narrow demographic of the

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survey respondents. Sixty-one percent of respondents reside in the TCU area and 207 (Q9.12) respondents are TCU students, this impacted the data because the opinions of a private university student are vastly different from the general public (Q9.4). Their level of exposure to restaurants and dessert shops is different than people who are not students and who do not live near campus. For example, Steel City sells their popsicles in the Brown Lupton University Union, a very common place for TCU students to hang out. Two hundred and three of the respondents had heard of Steel City Pops and 93% of respondents had heard of Sweet Frog, a frozen yogurt shop on campus. This could be attributed to the high level of awareness to their presence on campus. Another limitation was the dominating female presence in the survey responses at 84.47 percent. This is significantly higher than the male respondents at 15.54 percent. It would have been beneficial to distribute the survey in more male dominated groups or forums to even out the gender demographic responses. Distributing the survey produced overlapping populations. This is because the majority of students are out-of-state or outside of Fort Worth which limited many student's access to groups outside of the TCU population.

An additional limitation is the length of the survey. The quantity of participants that began the survey and answered the first question was 916, whereas only 619 completed the survey. While the causation for the partial completion cannot be said for certain, it is likely that it was a result of the length of the survey. However, this was not a limitation would be difficult to avoid. Because each group was seeking to answer different research questions, shortening the length of the survey would result in cutting out questions that would be key for other research groups to gather data from.

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Conclusions/Recommendations Upon the completion of the qualitative and quantitative study, RRG has compiled some conclusions regarding consumer opinion and perception of the Melt brand. From these conclusions, RRG has generated recommendations for Melt to better tailor its products to the consumers that it services, Melt and its upcoming move to Magnolia Ave. The first conclusion provided by RRG is that Melt’s atmosphere is perhaps its most valued asset in the eyes of Melt consumers. Melt has created a unique, pleasant environment that contributes to Melt’s niche brand personality. Additionally, consumers appreciate Melt’s unique physical features (such as the yellow wall) that contribute to the brand’s image. This also generates more “shareability” on social media as it provides unique and interesting photo opportunities. According to participants, consumers appreciate that they are able to engage and interact with Melt’s environment, making visits to Melt more engaging, interesting, and fun for the consumer. Observations and interviews indicate that customers hope to see additional seating and eating areas. This would encourage more consumer traffic and enhance their ice cream experience. Because of Melt’s past success with this marketing, we recommend building upon its recognizable physical environment.

After reviewing the data of the survey, RRG has compiled a number of recommendations for the client. The first recommendation is to offer incentives to consumers with the desire to increase in-store business. Data demonstrates that 76.73 percent of the 617 respondents have heard of Melt before. This indicates that Melt has a strong brand awareness among the respondents of this survey. However, only 56.52 percent of respondents have actually been to Melt. Due to the high number of TCU respondents, one factor could be that the large discrepancy between awareness and actual visitation is a result of lack of transportation and distance from campus. As a result, RRG recommends that Melt begins to offer "incentives"

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to encourage consumers to visit Melt. Examples include distributing coupons on TCU's campus, or hosting a "TCU Night" where consumers who wear purple and bring their TCU Student ID they receive half off one scoop of ice cream. This promotion would be publicized on Melt's various social media platforms.

Another conclusion provided by RRG is that Melt’s unique selection of flavors along with

their availability of traditional and health conscious flavors is something that is highly valued by Melt consumers. With that being said, consumers would like to see more options from Melt, such as topping, complementary products (coffee, cake, etc.). RRG recommends that Melt capitalize on these fulfilled and unfulfilled desires by creating a menu with new ice cream presentations. This could mean anything from providing healthy conscious toppings to experimenting with ethnic flavors. Because consumers appreciate Melt’s niche personality so much, RRG recommends that Melt take advantage of this strength within its market. With a larger physical location on Magnolia Ave, Melt will certainly have enough room to implement more partnerships with local companies, and introduce new toppings and items, to better tailor their products to meet these consumer desires.

Another conclusion made by RRG is the high value of Melt’s social media presence in promoting the brand to reach existing and potential consumers. Data analysis shows that Melt consumers are most active on Instagram and Facebook, which are also Melt’s most active social media platforms.Social media is an inexpensive way to attract new customers and engage current customers. Data indicates that Melt does a good job of engaging its current customers on social media, especially with Instagram and Facebook. According to the survey, respondents that follow Melt on Instagram see their posts 1-3 times a week. The survey shows that 18.83 percent of Melt customers follow Melt on Instagram (Q8.16). RRG encourages Melt to continue utilizing is strong Instagram presence. In addition, RRG also recommends that Melt begins to

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increase frequency of posts on Facebook. According to the survey results, more Melt consumers follow Melt on Facebook (24.03 percent), however Facebook users report seeing Melt less frequently compared to Instagram (Q8.16). Therefore, Melt should expand their presence and customer interaction on Facebook. When consumers take a photo in front of Melt’s iconic yellow wall to document their experience, consumers interact with Melt on social media and Melt receives free, authentic, unpaid advertising.

Melt has successfully created an iconic and unique atmosphere for consumers to enjoy, particularly with the yellow wall and chalkboard. In the survey, respondents were asked to share the first word that came to their mind when they thought of Melt and number of respondents that said "yellow" was extremely high (Q8.2). However, the survey reveals that 44.08 percent of the respondents have never interacted with the wall (Q8.15). The yellow wall is huge asset to Melt's brand image, but it could be utilized even more to increase word-of-mouth and unpaid advertising through interaction on social media platforms. Consumers can't miss the yellow wall, but many are not interacting with it so RRG recommends that Melt encourages consumers to snap a fun picture with their friends, significant other or dog with their ice cream near the wall on social media. Encouraging consumers to post to post pictures could be achieved through a framed piece of paper that says "We would love to see how you Melt! Tag us in your photos for a chance to have your photo reposted on our Instagram or Facebook. Follow us on Instagram at @melticecreams and 'like' us on Facebook!" This simple and chic frame should be placed near the cash register so it is fresh on consumers mind when they begin to eat their ice cream. The relationship that would be created between Melt and its social media savvy consumers is mutually beneficial.

RRG also recommends that Melt interacts with and pursues new customers on social media. RRG proposes creating promotions on photo captions that say "We are giving away

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three gift cards to three friends! All you have to do is be following us, like this photo, and tag two friends in the comments below! Winners will be announced on the next post". This would not only encourage customers to interact with the brand on social media, it would also introduce new potential consumers to the brand. Referring to the recommendation above, this type of promotion would also give customers incentive to visit the shop if they receive one of the winning gift cards. Rewarding customers with small gift cards is a great way to produce a positive brand image and encourage interaction with the brand.

Ultimately, RRG recommends that Melt (A.) build upon its existing iconic environment by adding more seating and creating more opportunities to take photos for social media. RRG also found that 45 percent of respondents value atmosphere when choosing a dessert shop (Q8.13). As a result, Melt should maintain their current atmosphere and general personality. (B.) Melt should take advantage of its unique market niche by incorporating more innovative ice cream options while capitalizing on desired ice cream classics. (C.) Melt should continue to extensively utilize social media platforms such as Instagram and Facebook, thus contributing to consumers’ desire to share on social media, and interact with Melt. (D.) Melt should provide incentive to drive in store ice cream sales using social media, gift cards, TCU “deals” and fundraising events. RRG suggest that future qualitative studies for Melt explore the outdoor environment such as outdoor seating, photo opportunities and decor, ways to expand on Melt’s interactive environment, and a more extensive analysis of Melt’s social media presence as well as additional platforms for Melt to implement.

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APPENDICES

Appendix A- cross tabulation of Flavor Preference, and ways MELT can improve respondent's experience

Appendix B- cross tabulation of social media sites that respondents follow MELT on and respondent's feelings about certain characteristics of MELT

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Appendix C- cross tabulation of dessert shops and restaurants and whether or not respondents are students at TCU

Appendix D- cross tabulation of how MELT can improve respondent's experience and reasons that respondents go to MELT

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Appendices E- cross tabulation of respondents’ age and how important certain factors are when choosing a restaurant/ place to eat.

Appendices F- Word Association for MELT brand

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Appendix G Participant Consent Document Texas Christian University Fort Worth, Texas

CONSENT TO PARTICIPATE IN RESEARCH Title of Research: Melt Ice Creams Strategic Research Funding Agency/Sponsor: Melt Ice Creams Study Investigators: TCU Strategic Communications Undergraduates: Justin Benedict, Makenna Morris, Kimberly Czechowski, Sloan Striker The purpose of this qualitative research study is to better understand what current customers want from MELT and the factors that influence their ice cream experience.

Up to 12 people will participate in this study over its duration. Your involvement in this

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study will consist of casual conversations/interviews with TCU researchers in an effort to accomplish research objectives. Any information or insights gained from these conversations/interviews with researchers will remain confidential. Only student researchers and professor Coleman will have access to your name/identity. All write-ups compiled at the end of this study will use pseudonyms. You should expect to commit ten to twenty minutes of your time to participate in this study. The primary risk of this study is the disclosure of personal information to the university and its students. As a participant, you will provide crucial information to better understand consumer preferences, perceptions, insights, and attitudes towards ice cream. You will not be compensated monetarily for your participation in this study, but will receive free ice cream. Participation in this study is entirely voluntary. You may verbally express your interest in withdrawing to any researcher at any time. Participants will be given a copy of this informed consent document to keep, upon request. If you should have any concerns regarding the study, contact: Student Researchers: Justin Benedict, Telephone: 716-597-4085, E-mail: j.d.benedict@tcu.edu Makenna Morris, Telephone: 714-335-9207, E-mail: makenna.d.morris@tcu.edu Sloan Striker, Telephone: 970-319-9374, E-mail: sloan.k.stryker@tcu.edu Kimberly Czechowski, Telephone: 858-472-5216, E-mail: k.l.czechowski@tcu.edu Research Professor: Catherine Coleman, TCU Research Professor, Telephone: 817-257-7452, E-mail: c.coleman@tcu.edu

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Your signature below indicates that you have read or been read the information provided above, you have received answers to all of your questions and have been told who to call if you have any more questions, you have freely decided to participate in this research, and you understand that you are not giving up any of your legal rights.

Participant Name (please print): _________________________________________________ Participant Signature: ________________________________

Date:______________

Investigator Name (please print):________________________________Date:______________ Investigator Signature: ________________________________

Date:______________

Appendix H Participant Data Sheet Demographics/data sheet: Participant number: _________ Gender: Male

Female

other

Ethnicity: White

Black

Hispanic/Latino/Spanish origin American Indian/Alaska

Native Asian

Native Hawaiian/Other Pacific Islander

Other

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Age: _________ Appendix I In Depth Interview Guide and Participant Observation Basic Info/ Home Life Where are you from?

Marital statue? Kids?

What are your hobbies? What are your routines?

Product preferences What desserts did your family typically indulge in?

What are your best memories associated with ice cream?

On what occasions do you eat ice cream now? How often?

Where do you like to eat ice cream? Why? Do you typically eat ice cream alone or with others?

Consumer Habits Are you a health conscious consumer?

What flavors do you associate with the Summer? Winter? Fall?

What social media platforms do you use/prefer?

Opinions About Melt Why do you choose Melt?

If Melt was a person, what would they be like? Would you want to be their friend? Why? What are the unmet needs of customers?

Is there anything that you think that Melt can improve upon? (open ended first, forced response second)

What does your ideal ice-cream shop look like?

Projective Techniques Imagine the typical Melt consumer eating ice cream.

Who are they?

What do they look like?

Where are they eating the ice cream?

What are they doing?

What is their personality like?

If Melt was closed, what type of dessert alternative would you eat? Imaging the typical ___ consumer Who are they?

What do they look like?

Where are they eating the ice cream?

What are they doing?

What is their personality like?

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References American Industry Overview: Ice Cream and Frozen Desserts. (2011). Retrieved February 08, 2016, from http://www.warc.com.ezproxy.tcu.edu/Content/ContentViewer.aspx?MasterContentRe f=2825229c-6573-4a18-ac0c-016b99c9af89&q=Ice cream&CID=A95465&PUB=GALE-EAI CBS News Poll. (2010, June). Retrieved February 07, 2016, from https://ropercenter-cornelledu.ezproxy.tcu.edu/CFIDE/cf/action/ipoll/questionDetail.cfm?keyword=ice AND cream ANDflavor&keywordoptions=1&exclude=&excludeOptions=1&topic=Any&organization= Any&label=&fromdate=1/1/1935&toDate=&stitle=&sponsor=&studydate=June 1-3, 2010&sample=960&qstn_list=&qstnid=1782561&qa_list=&qstn_id4=1782561&study_lis t=&lastSearchId=32722741&archno=USCBS2010-06A&keywordDisplay= IBISWorld Industry Report (2015). Retrieved February 06, 2016, from http://clients1.ibisworld.com.ezproxy.tcu.edu/reports/us/industry/ataglance.aspx?entid= 249 Ice Cream and Frozen Novelties. (2015). Retrieved February 08, 2016, from http://academic.mintel.com.ezproxy.tcu.edu/display/743599/?highlight#hit1

Ice Cream Industry Profile: United States. (2015). Ice Cream Industry Profile: United States, 1-36.

Melt Ice Creams. (n.d.). Retrieved February 16, 2016, from http://melticecreams.com/ Melt Ice Creams - Fort Worth Funky. (2015). Retrieved February 10, 2016, from http://www.fortworthfunky.com/melt-ice-creams/ Melt Ice Creams - Southside - Fort Worth, TX. (n.d.). Retrieved February 9, 2016, from http://www.yelp.com/biz/melt-ice-creams-fort-worth Menus : Stir Crazy Baked Goods. (n.d.). Retrieved February 7, 2016, from http://www.stircrazybakedgoods.com/menus/ Photos: Inside Melt, Fort Worth's funky new ice cream shop. (n.d.). Retrieved February 8, 2016, from http://www.dallasnews.com/entertainment/photos/20140416-photos-insidemelt-fort-worth-s-funky-new-ice-cream-shop.ece

Spoonable Dessert. (n.d.). Retrieved February 09, 2016, from http://academic.mintel.com.ezproxy.tcu.edu/display/552276/?highlight#hit1 Steel City Pops. (n.d.). Retrieved February 14, 2016, from http://steelcitypops.com/ Sweet Sammies. (n.d.). Retrieved February 10, 2016, from http://www.sweetsammies.com/

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