Amy's Ice Creams Case Study

Amy’s Ice Creams ADV370J/PR367 MWF 8-9 Eric Webber Name(s): Paige Kroll UTEID: pk5926 Case: Amy’s Ice Creams, Case 3.2 Date: 9/9/15 Problem Statement: Amy’s Ice Creams is hoping to increase the number of sales that typically occur during the winter months of January, February and March.

Opportunity Statement: Austin, Texas is a city that loves creativity, providing an opportunity for Amy’s Ice Creams to use their originality to gain attention.

Critical Factors: • Amy’s Ice Creams volume is down 50 percent during the months of January, February and March.

• Merchandise sales are lower than they could potentially be, and more traffic must be driven to their website for people to purchase.

• Amy’s Ice Creams does not use traditional advertising methods.

• Amy’s Ice Creams focuses on sponsorships, charity events, guerilla marketing and earned media to gain attention from community.

• Amy’s Ice Creams brand personality is fun and off-the-wall, as they are dedicated to serving ice cream with a theatrical experience.

• Nearly 9,000 people like and follow their Facebook page. Almost 8,700 follow the Twitter account. They are also close to reaching 3,000 followers on their Instagram account.

• Amy’s Ice Creams has an established e-newsletter to send promotions to customers.

Alternatives: Alternative 1: Social Media Contests and E-newsletter Promotions The key to generating purchases during the winter months is to use creativity and social media engagement to bring customers into the store. Two different social media campaigns will be used on Twitter and Instagram over two months. A different hashtag will be used for each campaign while customers tag the Amy’s Ice Creams Twitter and Instagram accounts. These photographs can be shown on a feed through the website.

The campaigns will be announced through social media, the website and the stores, asking customers to participate for a chance to win a prize (listed below). The shirt can also be sold on the website store. The winners would be chosen once a week by random selection using the hashtags.

1. “#FrostbittenAmysFan”- This hashtag would be used for the month of January. It would challenge Amy’s Ice Creams fans to show their loyalty during the harsh winter months. They can take a funny photo in the store with their ice cream and use the hashtag to enter. Once a week, a winner will be randomly selected and given the prize of a limited edition long sleeve Amy’s shirt with the brand’s

signature cow in winter clothing. This shirt will be sold on the website, as well, so other people can purchase the shirt while it lasts.

2. “#AmysIsBae”- This hashtag would be used in February. The winners would be announced on Valentine’s Day, and they would win Amy’s chocolate covered strawberries and ice cream coupons. Playing on the popular word “Bae” (“Before Anyone Else”) would make this campaign funny to the community. It would bring customers in to take a photo with the ice cream they purchase. The hashtag would also bring attention to the brand.

Utilizing the e-newsletter to send promotions to customers will be important during this time period. Buy-1-Get-1-Free promotions are the leader in popularity, at 49 percent (Mintel, 2014). Amy’s Ice Creams can send these coupons more frequently during March to bring customers into the store. Making these promotions mobile coupons will be important because they are easy to find on a smartphone and will make the purchase easier for customers.

Rewards: The social media contests will require customers to come to the store to participate, which will create purchases. More people will follow the social media accounts to see the funny photos posted by Amy’s Ice Creams. More traffic will be created for the website when people look at the photo streams or at the online merchandise. Shirts will be sold because of the limited edition, winter cow shirts.

Risks: Cold weather may continue to decrease ice cream cravings. Older generations may not connect with the February hashtag because it is not popular among their age group. The cost of producing winter shirts may not create enough profit if they are not sold.

Alternative 2: Community Partnerships and Vote for Flavors of the Month Amy’s Ice Creams can partner with Austin organizations and nonprofits to benefit a different group each month. This would take place during the months of January, February and March. Each month would be dedicated to a different organization. When a customer purchases ice cream and chooses to donate to the organization, Amy’s will give the equivalent in paper ice cream coupons up to $5 with an expiration date of April 1. At the beginning of each month, Amy’s Ice Creams will hold an online vote through their website for the Flavor of the Month. These should be seasonal to make them relate to each month. Customers can vote for which flavor they like, which will be announced through social media and the website. A hashtag can be used for customers to document their experience with the new flavors on social media.

Rewards: Customers will come back to the store to use their coupons before the expiration date, which is within the time frame of low sales. Not all coupons will be redeemed. Customers will associate the brand with giving back to the community, which will create a positive image. Customers will visit the Amy’s website to participate in the contest. They will also follow the social media accounts to be aware of the new flavors. The hashtag will bring attention to the brand on social media.

Risks: The cold weather may continue to prevent customers from coming to purchase ice cream. A larger number of coupons may be redeemed than expected. If a specific flavor is not chosen as the flavor of the month, some customers may not come into the store.

Recommendation:

Alternative 1 is the preferred choice because of the light-hearted social media contest and use of the already existing e-newsletter. Austin’s large population of social media savvy students and professionals participate in social media contests and engage with brands through Twitter and Instagram. The social media contests represent the personality of the Amy’s Ice Creams brand. If the contests trend on social media, they may gain earned media attention on local news stations. The platforms that will be used already exist, so there are no new costs. The costs are low for a limited number of shirts and coupons that will be given away.

Additional Comments: The alternatives listed above both align with Amy’s Ice Creams dedication to providing superior service to the customers and the community. There will be no money spent on traditional advertising methods.

References: Mintel. “Limited Service Restaurant (LSR) Specialty Shops - Snacks, Beverages & Desserts- U.S.” June 2014. Mintel. The University of Texas at Austin, Austin, TX. 7 Sept.

2015.