VS.

BY: RASHMIA CABRERA AND CARLA CLEMENTE

“There’s something in this stuff that makes you wake up

in the middle of the night and want it.” - Ryan

Seacrest

“By far the best frozen yogurt shop out there!... There are

a lot of copy-cats out there, but no one can beat them.”

“If you are health conscious, this is the best froyo place for you

with calorie listings for each item and the froyo itself having a

healthy tangy taste, it can't be beat.”

Why Frozen Yogurt?

● Popularized healthy dessert option● Focused on these two top competing companies● Wanted to go behind the scenes of the frozen

yogurt craze● WE LOVE FRO-YO!

Goal of Study

To compare the following

between both:

o Organizational culture

o Core values

Collection of Data● Organizational Documents● Media Documents● Survey● Interviews

Pinkberry - “Taste Worth Obsessing Over”

● Launched in 2005 in West Hollywood, California● Founders: Shelly Hwang and Young Lee● CEO: Ron Graves● Developed a “cult” following● Celebrity endorsements● “Our growth strategy is one quality store at a time,

one market at a time, one quality partner at a time” - Ron Graves

● Originated in South Korea in 2002

● Brought to the U.S. in 2007 by founder and CEO Dan Kim

● Name based on the actual fruit

CORE VALUES

Photo from: Pinkberry.com

●Real, all-natural yogurt

●Unique store experience

Organizational Culture

HIERARCHY - PINKBERRY

• Highly structured hierarchy• Corporate in California

• Hierarchy in regions: Area Manager

Owner General Manager

Shift LeaderTeam Member

HIERARCHY - RED MANGO

● Corporated headquarters located in Texas● Less vertical hierarchy

HIERARCHY:Corporate Investors

Individual store owners/franchisers Managers Employees

EMPOWERMENT - PINKBERRY

Strong voice among employees

Keeps employee morale high as well as

customer service

Hard work recognized by corporate

EMPOWERMENT - RED MANGO

Easy and open communication between

subordinates and higher-ups

Subordinates have a voice in company decisions

3-4 days of training to ease away from high surveillance

Frequent visits from higher ups

Secret shopper

Yearly corporate visit

After training, employees become autonomous

Job is fairly easy; no need for extreme surveillance

Employee Relations - Pinkberry

● Highly social environment

● Mutual respect is expected among employees

● Conflicts among employees are generally resolved through store meetings

Employee Relations - Red Mango

• Managers generally trust employees

• High employee retention rates lead to a decline in meaningful manager-employee relationships

DIFFERENCES - PINKBERRY

Strategically located

Formally structured

Slighted more towards customer service

Controversial news coverage

DIFFERENCES – RED MANGO

International locations

Full-serve or self-serve options

Expanded menu

No controversies

Less formal structure of hierarchy

Similarities

● Goal of serving healthy frozen yogurt

● Similar audience

● Surveillance

● Marketing strategy

● Fun, vibrant atmosphere

Recommendations

● None for Pinkberry

● For Red Mango: Employee incentives

Red Mango logo

REFERENCESBhasin, K. (2011, September 12). Pinkberry exec on the most important part of social media marketing. Retrieved from

http://www.businessinsider.com/exclusive-pinkberry-director-of-digital-pamela-naumes-2011-9Datamonitor (Firm). (2008). Pinkberry case study: Creating a social environment around a healthy indulgence. London: Datamonitor.Kneiszel, J. (2011, April). New frozen yogurt company grows fast with healthy treat. Retrieved from

http://www.qsrmagazine.com/emerging-concepts/one-watch-pinkberryPinkberry. (2014). The Pinkberry promise. Retrieved November 22, 2014, from http://www.pinkberry.com/aboutClaman, Liz. (2013, July 16) Frozen yogurt competition heats up. Fox Business: After the Bell. Retrieved from

http://video.foxbusiness.com/v/2549414725001/frozen-yogurt-competition-heats-up/#sp=show-clips. Datamonitor (Firm). (2008). Pinkberry case study: Creating a social environment around a healthy indulgence. London:

Datamonitor. Kim, D. (2014, April 14). Small business, big mistake: allowing my investors to handpick my management team. The

Washington Post. Retrieved on October 5, 2014 from http://www.washingtonpost.com/business/on-small-business/small-business-big-mistake-allowing-my-investors-to-handpick-my-management-team/2014/04/14/1492bcbe-c3fd-11e3-b574-f8748871856a_story.html.

Krantz, M. (2007, December 30). Red mango usa dishes up healthier frozen yogurt. USAtoday.com. Retrieved on October 5, 2014, from http://usatoday30.usatoday.com/money/smallbusiness/2007-12-30-red-mango_N.htm

Netburn, D. (2006, August 4). The taste that launched 1,000 parking tickets. LA Times. Retrieved on October 5, 2014 from http://articles.latimes.com/2006/aug/04/entertainment/et-pinkberry/.

Pinkberry. (2012, February 16). Company statement about Young Lee arrest. Retrieved on October 5, 2014 from http://www.pinkberry.com/press-a-media/50-articles/488-company-statement-about-young-lee-arrest.

PR Newswire. (2014, June 16). Red mango celebrates 300th location with debut of red mango yogurt cafe & juice bar in oak park, IL. (2014, June 16). PRNewswire.com. Retrieved on October 3, 2014, from http://www.prnewswire.com/news-releases/red-mango-celebrates-300th-location-with-debut-of-red-mango-yogurt-cafe--juice-bar-in-oak-park-ill-263274671.html.

PR Newswire. (2014, Jan 14.). Red mango celebrates milestone year of development in 2013. Retrieved October 28, 2014, fromhttp://www.prnewswire.com/news-releases/red-mango-celebrates-milestone-year-of-development-in-2013-240270951.html.

Rayasam, R. (2007, May 10). Pinkberry's success story. USnews.com. Retrieved on October 5, 2014 from http://money.usnews.com/money/blogs/small-biz-scene/2007/05/10/pinkberrys-success-story.

Whitcomb, D. (2014, March 14). Pinkberry yogurt chain co-founder gets seven years in prison in beating. Retrieved on October 5, 2014 from http://www.reuters.com/article/2014/03/14/us-usa-pinkberry-assault-idUSBREA2D1MO20140314.

HAPPY EATING!