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Berry, Berry, Ambitious

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Workshop #4

Berry, Berry Ambitious

MBA 454

Marketing Strategies

BSA 529

June 13, 2011

Dr. Ehsan Salek

Berry, Berry Ambitious

Frozen yogurt is hot again, but with a more gourmet tone. Chains, including Pinkberry and Red Mango, are battling in L.A. and looking to expand. The story of Pinkberry’s success is really about the chain's image as a design brand. The fro-yo shops position themselves as coffeehouses, a place to experience frozen yogurt in an inviting atmosphere and linger a while. The frozen yogurt of the 1980s tapped into the fitness craze, a low fat yet still sweet substitute for ice cream.

Pinkberry Korean-style yogurt comes in two flavors: plain and green tea. It is rather like Greek yogurt with a hint of lemon. The fresh, tangy, strangely satisfying flavor grows on you. With only two products, minimum staff training, a playfully modern store design and regular customers, Pinkberry franchises seem to be licenses to print money. The snack, with only 25 calories a portion, served with fresh fruit or crunchy toppings like Oreo cookies or Cap’n Crunch. Pinkberry yogurt is one of those American franchise ideas (think soup, coffee, and juice bars) that seem so obvious, you want to kick yourself for not having bought in at the beginning. The growth of the franchise has been explosive, from one Los Angeles store in January 2005 to 16 today, plus three in New York (five more by the end of summer) and, soon, six in London. It has become the new crackberry addiction for celebrities, friends, and loyal customers. The fancy chairs, store décor, and tangy yogurt are enough to survive in a competitive market.

Pinkberry’s origins, like those of so many Hollywood figures, are murky. Red Mango, a five-year-old Korean chain that came to the United States in 2007, claimed that Pinkberry copied its concept. Cofounder Hwang is even rumored to have briefly worked at a Red Mango shop. Today, Pinkberry is the new moneymaker on the block. However, will tomorrow fickle celebs who, from the start, have been Pink berry’s best advertisers still be around after the fade gone?

References
Walker, A. Berry, Berry Ambitious: Retrieved December 2007/January 2008 from Fast Company, p.50-52 Mansueto Ventures LLC.

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