MARKETING CASE STUDY:
Harnessing the power of Co-branding –
Rita’s Swedish Fish Italian Ice
Background:
Rita’s Italian Ice is a national chain of frozen treat stores based in Trevose, PA. This franchise concept was founded with a single location by Bob Tumolo, a retired firefighter in 1984. The chain sells two core products, freshly made Italian Ice and old fashioned vanilla and chocolate frozen custard.
Problem:
Coming up with new products to excite consumers is tough in an environment where the menu is purposefully limited to just two core items. In rank order, the 5 top selling Italian Ice flavors over the years included: Mango, Cherry, Lemon, Chocolate and Rootbeer. Rita’s already had more than 50 flavors in inventory and although Rita’s guests are always willing to sample, they are reluctant to risk their treat occasion by purchasing a brand-new flavor. New frozen treat competitors were popping up and threatened to steal market share from Rita’s by offering new and innovative products. The challenge was how to create news, value and excitement for Rita’s guests while keeping operations for the concept simple.
Solution:
In 2010, Lynn Hoban and her marketing team harnessed the power of co-branding by creating a partnership with a well-known, international candy manufacturer, Cadbury Adams, to develop and launch “Swedish Fish” flavored Italian Ice. The Rita’s team came up with the idea. Getting decision-makers at Cadbury to return our calls and agree to a meeting was tough initially.
When we arrived at Cadbury to sell the idea, Lynn Hoban and Rita’s R&D Director had 15 minutes to pitch and close the deal. Our offer to Cadbury was to feature Swedish Fish as an exclusive promo flavor for the month of August 2010, along with a commitment to support the co-branding partnership with extensive in-store point of sale materials, radio, and public relations. Although Cadbury had never done anything like this previously, they were willing to trust us with their brand. And so, Rita’s Swedish Fish Italian Ice was born.
Results:
Again, at the time Swedish Fish Italian Ice was invented, Rita’s already had more than 50 flavors in inventory. Rita’s guests are always willing to sample, but they are reluctant to risk their treat occasion by purchasing a brand-new flavor. In the first 30 days of the launch, Rita’s sold 1.5 million cups of Swedish Fish Italian Ice, generating more than $3 million in sales.
Effective marketing for any enterprise starts with believing that anything is possible. If you want out-of-the-box thinking and a marketing leader who won’t take no for an answer, contact Lynn Hoban at Lynn@LynnHobanMarketing.com to find out more.
