Seven years ago, when Kathleen Flynn Fox left the marketing research department at Bresler's Ice Cream Co. in Chicago to work in market research at Carousel Snack Bars of Minnesota, Inc., in Minneapolis, she was taking on a big challenge. Her duty was to market a typically male-consumed product - hot dogs - in a primarily female-populated location - shopping malls.


"It really isn't difficult to get people to buy ice cream because practically everyone loves it and eats it," says Fox, vice president of marketing at Carousel Snacks. "But traditionally, only males have been known to be the biggest consumers of a product like hot dogs. Most females, if you ask them, say they don't eat hot dogs. The total mall population, however, is 75% female and 25% male."

In addition to the large variety of hot dog specialties, Carousel also sells hamburgers, pizza, pocket sandwiches, beverages, french fries and nachos. The 325 food outlets, also known as "Hot Dogs & More," "The Great Hot Dog Experience," "The Great Hamburger Experience," "Carousel Pizza" and, "Frankly Speaking," are located in major shopping malls nationally.

Fox's challenge was further complicated. No formal research was currently being conducted to find out what the restaurant customers—35% mall employees, 50% shoppers and 15% teens and senior citizens— thought of the restaurants, the food served or what they wanted to eat. That's when Fox initiated vigorous market research consisting of mall intercepts and focus groups.

On-going research

Almost any day of the year, mall intercepts and focus groups are being conducted by Carousel to test new product introductions. The mall intercepts help the restaurants discover what foods are or are not appealing to the mall customers and what new types of food they would like to see on the menu. Mall intercepts also rate the restaurants' performance, how customers perceive their service responsiveness, cleanliness, menu variety and price value. Ideas generated by mall customers and store managers are then presented to focus group participants. Five sets of focus groups test a particular product prototype. Customers of various Carousel restaurants within that particular city are asked to participate and every targeted audience, whether it's children, working women, homemakers or mall employees, assist in product testing.

Actively listening and following up on customer needs and expectations have paid off for the restaurant chain. Seven years ago, there were just 240 food outlets, each with annual sales of approximately $115,000. Today, all 325 stores have annual sales of about $160,000.

"International Sausages"

The introduction of Carousel's "International Sausages" in May, 1986, was one way in which the restaurant followed up on customers' request for a different product.

Fox says the product rating they were getting for hot dogs was good for everyone except the male segment. When males were interviewed, Carousel found they wanted a bigger, spicier hot dog. Six months later, Fox and a task force of various company officers who help with product development and introduction, came out with two sausage prototypes. The unit test - the customers' taste buds - was the next step and involved putting the product in 20 restaurants for 2-3 months to get the customers' reaction to the two products. Mall intercepts during this time revealed that male customers were eating and liking the sausages, says Fox. The final product is one of the restaurants' biggest sellers.

"The 'International Sausages' are a Polish and Italian sausage twice as big as hot dogs, spicier, loaded with condiments and have a bigger bun," explains Fox.

Channeled results

Before a product like the "International Sausages" is introduced, the findings from the mall intercepts and focus groups go through a channel of company officers. Besides Fox, the company's other two vice presidents (operations and real estate) get the results, as well as Carousel's comptroller and the president of the company. Fox also gives quarterly presentations to the company's field management teams from across the country.

"The purpose of these presentations is to tell them where our sore spots are and where we look good. It also lets them know where our customer count is up and where it is down."

The results are then used by Fox and the task force to develop new product prototypes that are finally tested by the restaurants' customers. This stage of the research process is especially exciting for Fox.

"This is the best part of the research effort because I'm not sitting in a vacuum coming up with new product ideas all by myself. Everyone is involved and behind the product we're introducing. It makes it so much fun and rewarding for everyone when we have a successful product."

Carousel Snacks has been successful developing products and providing service which keep customers coming back. Customer input, believes Fox, has been invaluable to the restaurants.

"Our customers are very truthful. If they have a problem with service, for example, they tell us. They're also very understanding. They don't expect a five-star restaurant, but they do expect cleanliness, to be treated courteously and to get fast service. And that's exactly what we try to provide."