Baskin-Robbins Gives Big Scoop to L.A. Ad Agency
Baskin-Robbins--looking for a change of flavor--has named a new advertising agency.
On Friday, Baskin-Robbins, one of the world’s largest ice cream store chains, picked the Los Angeles-based firm Asher/Gould Advertising to handle its estimated $10-million annual advertising business.
“This was a real scoop for us,” said Harold Asher, chairman of Asher/Gould, which also creates ads for Pabst Brewing Corp. and American Savings Bank. “We’ve eaten a lot of ice cream around here the last couple months.”
The decision comes as a blow to the Los Angeles office of J. Walter Thompson, which has created many of the Baskin-Robbins ads for the past five years, and to Western International Media, which purchased much of the media time for the Glendale chain.
“Every so often you review agencies,” said Marilyn Novak, director of public relations at Baskin-Robbins. “The time has come to change.”
The change was actually ordered by the chain’s new chief executive, William I. Savel, who joined Baskin-Robbins in March.
Analysts say it is primarily the ice cream maker itself--and not its ad agency--that is responsible for its own problems.
Gallon Sales Have Steadily Declined
Baskin-Robbins, which is a privately held subsidiary of London-based Allied-Lyons, does not release sales figures. But analysts say that while its annual dollar sales have continued to rise in recent years, the best measure of its business--gallon sales--has steadily declined. As with all ice cream stores, Baskin-Robbins has lost market share to supermarkets that now carry premium brands and greater variety. But at the same time, it also felt the pinch from a number of popular frozen yogurt chains.
“Yogurt is the magic word,” said Barbara Dawson, West Coast editor of the trade magazine Restaurants & Institutions. “Baskin-Robbins is way behind the times on that.”
The vast majority of Baskin-Robbins’ 3,400 stores worldwide are not owned by the company. And although the company has been prodding franchisees to add yogurt machines for several years, a large number of them have been slow to invest the estimated $20,000 required to install the proper equipment.
Executives say although plans are not yet firm, they are considering an ad campaign intended to lure back customers with yogurt and low-fat ice cream.
The company says it expects more than 80% of its stores will offer frozen yogurt within the next year. In April, the chain was among the first to introduce a low-fat ice cream that is sold at all of its stores.
“One thing’s for sure,” said Novak. “We’ve all moved away from the days of chocolate, strawberry and vanilla.”
