Generations of East Coast kids grew up on Fudgie the Whale, Cookie Puss and other frozen goodies from Carvel Ice Cream. Carvel is counting on that brand loyalty — and some fancy software — to drive a new wave of growth out West.

Privately held Carvel, which is more than 70 years old, has grown to 525 outlets in 32 states. Those states are mostly in the East. To keep growing, it needs to gain traction in the West.

To battle Baskin-Robbins, Haagen Dazs and other chains strong in the West, Carvel is targeting displaced New Yorkers and East Coasters who yearn for a frosty taste of home.

How will Carvel find them? By using "location intelligence" software from MapInfo. (MAPS)

The software uses demographic surveys, market analyses and digital maps to find sites for new Carvel franchises.

It also is helping Carvel find the best supermarket freezers for its products, says David Bunten, head of predictive analytics sales for MapInfo.

"Our software gives users a sensible strategy to allocate their capital resources," Bunten said. "This helps management justify to their shareholders that they're making wise decisions."

Troy, N.Y.-based MapInfo surveys consumers and conducts other market research for its clients. The company says it interviewed 16,000 Carvel customers at 45 existing stores.

MapInfo has also amassed databases on broad demographics. The data look at such things as age groups, salaries, interests, ethnic backgrounds and other personal details.

Carvel can't conduct such extensive studies and create such databases on its own, says Mark Whittle, vice president of real estate for Carvel parent Focus Brands. Without MapInfo, Carvel would be shooting blind in terms of opening new stores, says Whittle.

"We use this system as a strategic directional tool," he said. "We rely on it to find where customers have a higher propensity to purchase our products."

Roark Capital bought Carvel in 2002. It was made part of Roark's Focus Brands unit, along with the Cinnabon chain and non-U.S. outlets of Seattle's Best Coffee. (Starbucks (SBUX) owns Seattle's Best in the U.S.)

MapInfo has helped Carvel pick locations for new stores in its first three markets in the West — Dallas, Los Angeles and Phoenix. Whittle wouldn't say what Carvel is paying MapInfo, but he says he expects the software to have the effect of boosting revenue by at least 10% in those markets.

"We found lots of ex-New Yorkers who had migrated elsewhere," he said. "Many of them flock to Carvel's when they learn of a nearby store opening."

MapInfo research confirmed that Carvel customers come largely from areas with dense populations of dual-income, married couples with children. Areas with many singles and lower-income residents are less likely to buy ice cream cones, sundaes and shakes.

MapInfo's 7,000 customers include companies in retail, insurance and banking, as well as government agencies. Three of them are Home Depot, (HD) BT Group (BT) and Gap. (GPS)

Small businesses pay $999 per year for simple mapping and reporting from MapInfo. Big companies can pay from $50,000 to $500,000 for the MapInfo service.

MapInfo's Bunten concedes that it's hard to assess the return on investment of his company's software and service. But he says MapInfo can help customers understand fast-changing demographics.

"There is much more diversity these days, and unique cultures are not as clearly assimilated in society," he said. "Now there's a much more complex picture of the collective population."
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