Contemporary Marketing 16th Edition by Louis Boone,David Kurtz

Exercise 9

It's a blazing hot day, and all you can think about is the cold, sweet sensation of ice cream on your tongue. Or maybe you prefer the tangy, icy taste of sherbet. GaGa SherBetter is both-or neither, depending on how your taste buds react to the tart flavor and smooth texture of this frozen confection. Less than a decade ago, Jim King decided to whip up a few batches of his grandmother GaGa's lemon sherbet to see if anyone outside his family liked it. He peddled the sherbet to grocery stores in Rhode Island before stopping at Munroe Dairy, where the owner fed it to his dog-who lapped up the lemon dessert. "I'll take 500 pints," said Munroe's owner. Although this wasn't the most scientific way to test a market, the purchase put King and his wife Michelle in business-and they've churned out thousands of pints ever since. Despite the fact the product line has expanded from one flavor to seven (along with six novelty bar flavors), consumers still aren't quite sure what GaGa SherBetter is-which is a challenge for the Kings from a marketing standpoint. SherBetter is the Kings' own name for the product, meaning "sherbet but better." At only 160 calories and 4 grams of fat per serving, GaGa is lighter than ice cream, but it packs a creamy punch in the mouth. They've positioned their product as the best of both: SherBetter. GaGa product cartons feature a tagline that spells it out: "Smooth as ice cream, fresh like sherbet."
Michelle King, now marketing director for the company, acknowledges, "We haven't had a very scientific approach to marketing research. We've called upon our own resources, our family and friends, and done a little bit of focus-group research." They have conducted taste tests that confirm consumers' preference for GaGa over other products. At one taste test of nine frozen dessert products, Gaga ranked first or second with every participant.
The Kings also rely heavily on sampling at markets and events to get the word out among consumers and the products onto store shelves. Giving away the product "is the biggest way to increase sales," says CEO Jim King. If they are in a store, not only do people buy GaGa that day, they tend to return for more later on, trying new flavors like key lime or toasted coconut. The Kings track sales from these efforts to help forecast future potential sales and consumer preferences.
From the beginning, the Kings knew they couldn't compete with ice cream giants like Breyers. Sherbet accounts for only 4 percent of total ice cream sales, trimming the market even further. They targeted the higher-end ice cream makers, such as Ben Jerry's and Häagen-Dazs, but their product didn't fit there either. "The mistake we made was mis-marketing the product, trying to market it as something it's not, because we thought it would be more appealing to consumers," admits Michelle King. Finally, they hired a company to conduct some marketing research and received the advice they'd intuited all along: "Be true to ourselves."
The Kings would advise other young start-ups to conduct focus groups and other marketing research "right out of the gate" instead of waiting as they did. They continue to do the best they can with a tight budget, making the most of free marketing such as sampling and social media. But they believe that all consumers need to do is try a spoonful of GaGa, and they'll become loyal followers. The dessert gets sweet reviews in the press and blogs, and it has made its way to some regional and national chains like Shaw's, Wegmans, and Whole Foods. As for the name, the Kings trademarked it long before Lady Gaga ever hit the stage. There's no research on what Jim's grandmother would have thought about that.
Questions for Critical Thinking
1. How would you define the major problem faced by GaGa that a marketing research program could resolve? How has this problem affected the marketing of the company's products? How might marketing research help?
2. Identify the methods of collecting primary data, and give an example of how GaGa might implement each method.