Marketing Plan for Lords Ice Cream Parlour

Table of contents

Executive summary

‘Lord’s Ice-cream Parlour’, one of the prime ice cream products situated in St. Johns Wood with a good market share is one of the best in that area providing ice cream with fresh taste and modern packaging. It was established in 1998, ‘Lord’s Ice-cream Parlour’, at present uses straight-line technology for manufacturing more than twenty three types of premium ice cream in its factory in Swiss Cottage, producing nearly 530 liters of ice cream each day . Lord’s Ice-cream Parlour’ has a two year marketing plan for current customers as well as its new consumers to attract and satisfy those target groups of consumer. The company wants to increase its market share by 7% and compete with the current and new entrants. For the next two years the company wants to increase its promotional activity. The management has a plan to utilise its one- fourth of its profit for promotional activity. The manager is also planning to increase its branches in two to three different locations.

Company profile

MISSION

Mission is the organisation’s reason for existence.

The mission describes the organisation’s shared values, beliefs and reason for being. ‘Lord’s Ice-cream Parlour’ without playing an exception, being committed to achieving the highest quality products and positioning itself as a good brand by gaining the consumer’s trust aligns effectively to its guided mission that echoes-“The world of great taste”. This includes a dedication to review the existing operations, the evaluations and the creation of the new products by not only manufacturing the highest quality products but also delivering the product by maintaining this high quality.

To satisfy the ever-changing needs of the customers, ‘Lord’s Ice-cream Parlour’ is launching regularly new ice creams and introducing new flavours. Thus in a few words it can be said – ‘Lords Ice-cream Parlour’ is based the relationship with customer.

Vision

The message from the managing director of ‘Lords Ice-cream Parlour’ propagates as: “I dreamt of a business venture that would have distinct appeal to society for its unique qualities and eventually will become a role model for other business enterprises. This simple but extraordinary quality is “Be True to The Society. ‘Lords Ice-cream Parlour’ as being a very prospective SBU’s which is guided by this similar vision. As a result this key philosophy has earmarked ‘Lords Ice-cream Parlour’ as the most trusted and one of the better companies in the country. ”

Objectives

Corporate Objectives

To give an insight to the ice cream industry, the company and the product line.

To make an assessment of the interaction between ‘Lord’s Ice-cream Parlour’ and its immediate environment and analyse the impact of various trends upon its survival and long-term success.

To conduct an investigation of the wide range of strategies pursued by ‘Lords Ice-cream Parlour’ with a view to achieving its objectives.

Marketing Objectives

  • To analyse the marketing strategies for ‘Lords Ice-cream Parlour’ and assess its target consumers and competitors.
  • To regain the 15% of the inactive member by December 2010.
  • To provide an introduction of the strategic aspects of marketing with particular reference to the analysis of marketing mix.
  • To increase the revenue by 12% by December 2010. To increase the market share by 7% by December 2010.
  • To analyse the techniques of segmentation, targeting and positioning of products.
  • To analyse the distribution channels and the role of intermediaries in the distribution network.
  • To develop an appreciation of the need to evolve a appropriate to the product.
  • To explain and analyse the role of Marketing Research.
  • To have a clear analysis of the various growth strategies for the market opportunity identification.

Research was undertaken by gathering descriptive information from the managers, customers and employees in the form of personal interviews.

Both quantitative and qualitative analysis has been emphasised. Both primary and secondary data were obtained through informal interviews with the company and questionnaires to customers. Moreover in cases where managers and customers were unwilling or unable to provide information, observational research played a vital role. It must be added that the report though, tried to give an overall view of ‘Lords Ice-cream Parlour’, it focused on London City as their area of study.

Primary data was first collected by taking in depth interviews of the Marketing Executive and Sales person to have a better insight to the marketing aspects of ice cream. Mostly personal interviews were undertaken since flexibility, quality of data that can be collected, speed of data collection and response rate is extremely high and information seems to be more reliable and effective. Only unbiased, relevant and valuable data of related issues were recorded to ensure a critical evaluation of the marketing techniques and strategies used by ‘Lords Ice-cream Parlour’.

Problems were faced during the interview, as the managers were reluctant to disclose some of the confidential aspects of the organisation. All the data obtained were not always reliable and hence subject to error. Due to the time constraints I could not complete a comprehensive investigation and there were some areas that were left unexplored. In many occasions managers were hesitant to cooperate in providing honest answers. 8. 1 The Marketing Environment No business is large or powerful enough to create major change in the external environment.

These factors are generally uncontrollable, thus market managers are basically adapters rather than agents of change. So it is vital for ‘Lords Ice-cream Parlour’ to take these factors into consideration in every step of their decision -making process and day-to-day activities.

Marketing environment

The Task Environment

‘Lords Ice-cream Parlour’s task environment consists of those micro groups in the environment such as suppliers, distributors, customers and competitors. These are interrelated groups that influence managers on a daily basis.

Suppliers

From 2010 January the management decided to open two new branches. And two other retail stores are interested to take the product from ‘Lords Ice-cream Parlour’. The main function of the distribution unit of ‘Lords Ice-cream Parlour’ is to create a sequence of effective network so that an important strategic edge over competing channels are created and ensure a continuous flow of its products to the ultimate consumers – target market. The activation of the distribution channels proceeds from their factory and ends at the retail outlets of refrigerated vans.

Customers

Being the major source of survival and profit, customers form the most important component for an organisation like ‘Lords Ice-cream Parlour’. ‘Lords Ice-cream Parlour’ considers customers as being their life-blood of survival and is taking the maximum innovative efforts that can be utilized for utmost customers’ satisfaction. Customers here can be segmented to family, kids, teenagers of high end, mid end and low end of the market. ‘Lords Ice-cream Parlour’ operating in such ever-changing world of tastes and preference pays heed to customers’ choices and their attitudes. They, very keenly take on customers’ advice, try and amend as well as add new dimension to their business in order to ensure survival in this highly competitive industry.

Competitors

One of the most important forces that always keep an organisation on guard is its competitors. Competitors are organisations that produce similar goods. In the context of ‘Lords Ice-cream Parlour’, Movenpick, Baskin Robbins, Thorntons and Marine Ices are their competitors. But surprisingly, the marketing management of ‘Lords Ice-cream Parlour’ views these local brands as mere participants in the same industry rather than as competitors.

The General Environment Economic, technological, socio-cultural, demographic, political and legal, and global forces form the macroeconomic environment that ‘Lords Ice-cream Parlour’ operates in are as follows:

Economic

Economic forces are of concern to businesses involves producing goods and services that people want and pay for, as because the economy is an indicator of the general health and well being of a nation. ‘Lords Ice-cream Parlour’ takes into account various economic factors, preferably the rates of inflation, the exchange rate and level of income.

The prime reason for such is to have a control over its allocated budget for domestic and imported raw materials. But most importantly alertness of economic variables is necessary to determine ‘Lords Ice-cream Parlour’s pricing strategy so that all segments of the population can afford to buy their products. One of the most pervasive factors in the environment, is seen as the combination of skills and equipment’s that marketers use in their day-to-day operations.

In ‘Lords Ice-cream Parlour’, use of technology can be seen in terms of the automated cone machines, chocolate making machines, injected deep freezers, milk processing machines and others. These innovate machines are able to produce ice creams at a faster rate while not undergoing any sacrifice in the level of quality, and thus their warehouse has capacities in five hundred liters. The socio-cultural environment is made of institutions and other forces that affect social values, perceptions, preferences and behaviour.

In the context of a diverse people, ‘Lords Ice-cream Parlour’ has customized its services according to the country’s culture. While the producing ice cream, ‘Lords Ice-cream Parlour’ puts strong emphasis in it.

Demographic

The demographic forces are of interest to marketing managers because it involves people and people make up the markets. Demography shows the populations inclinations towards certain social structure and the increase or decrease in certain age groups .

For ‘Lords Ice-cream Parlour’ demographic factors are of advantage if it shows an increase in the number children and teenage population (the most lucrative segment for the ice cream industry).

Political and legal

The formation, maintenance and survival of any organization are dependent on the stability of a country’s political and legal system. A comprehensive analysis of the political and legal factors by ‘Lords Ice-cream Parlour’ helps in ensuring stability in terms of its operations. The legal consideration lies in the awareness of various laws regarding import of raw materials and the like.

Current Situation Analysis

Core Competencies

Among its normal premium and novelty cup, stick and family pack items, chocobar is the most popular among consumers contributing 29% to the total sales, while vanilla, mega, cornelli and macho, each with sales of about 5%, and have also made their distinct places in the minds of the consumers. The company is giving its effort and concentration for some new and modified flavour of ice-cream.

The company wants to increase its market share by 7% for which it is introducing some new marketing strategy and it will be implemented from the next year.

Market information

‘Lords Ice-cream Parlour’ is in their 10th year of business. Being an ice-cream parlour in the St. Johns Wood High Street area, its main activity is to attract customer by its variety of ice-cream flavour. ‘Lords Ice-cream Parlour’ possesses good information about the market and having a good idea about the consumer trends and the likeability of the consumers. And this information helps them to understand how well they can communicate with their consumers and how better they can be served.

Geographic

The geographic target for the ice-cream parlour is St. Johns Wood area. Five square kilometre people are targeted. Total targeted population is approximately 13,500 64. 9% are economically active and 35. 1% are economically inactive. A fulltime employee’s individual average income is 29,305. 48. 8% are educated and 52. 2% has got no qualification.

Behaviour factors

Recognize the need to have a good dessert like ice-cream.

People likes ice-cream more than any other dessert. Ice cream is the symbol of lifestyle.

Market needs

‘Lords Ice-cream Parlour’ is providing their customers delicious ice-cream and a place for enjoyment. It seeks to offer the following benefits that are important for their customers: Customer’s preference is to get healthy ingredients in their specific flavour. Customers also prefer a better service and attention from the staff.

Market Trends

Last two years’ consumers has less money in their pocket, so that they are spending less money on dessert and ice-cream.

Fitness is very important for the people, that is why people are avoiding ice-cream A big percentage of people are going to pubs and bars rather than coming to the ice-cream parlour.

BCG Matrix

Boston Consulting Group (BCG) matrix is a framework for highlighting and analyzing product development policy and associated cash flows implications in a firm. The BCG approach is based on the philosophy that a product’s market growth rate and its relative market share are important considerations in determining its marketing strategies.

The marketing strategies of ‘Lord’s Ice-cream Parlour’ is based on the BCG matrix which includes an integration of the firms products into a single overall matrix and an evaluation to determine appropriate strategies for all the different strategic business units (SBUs) of the company itself and the overall portfolio strategies. ‘Lord’s Ice-cream Parlour’ identifies the BCG matrix as a powerful tool To analyze the current situation of the company which is based on the present and projected market growth rate and proposed market share growth.

To determine and classify each product expected future cash contributions and future cash requirements. To examine the competitive position of a product or a product line and the opportunities for improving products contribution to profitability In figure below, which is based on work by the Boston Consulting Group, consist of four quadrants in the grid, which represents distinct categories of SBUs or major products of ‘Lord’s Ice-cream Parlour’. The categories differ with respect not only to market growth share and industry growth rate but also on cash generation and needs for appropriate strategies.

Cash Cow

Cash cow has high market share but low growth rate. Since its inception as a business in 1998, the Construction Company has had a remarkable track record and has grown to be a better construction houses in the country. Long run survival through effective strategies of defending its market share by reinforcing customer loyalty has insured the generation of more cash than can be reinvested profitably in its own operations.

As a result cash from the construction company flows out to support other SBUs that needs more resources. Star: Star has high market growth rate and high market share. The Marketing Manager of ‘Lord’s Ice-cream Parlour’ identified Construction and Ice-cream as their star businesses. A number of prospective factors can be reckoned to as for both SBUs performance. Both Construction business and Ice-cream occupy a dominant position in the market. Star businesses usually grow very fast and have high prospects for growth. For example, Ice-cream grew by 3. 1% in the last year (2008), compared to their 5%in (2007).

Question Mark

Question Mark has high growth rate, low market share. The identification of the marketing division of ‘Lord’s Ice-cream Parlour’ as its problem child, has characterized this business to have high prospects for growth but which has not yet achieved strong foothold in an expanding but highly competitive market. This inability to generate cash has resulted in poor profit margins and hence its need to be augmented by heavy investment from outside sources.

According to ‘Lord’s Ice-cream Parlour’, no SBU (currently operating) falls under the grid of low market share and low growth rate, that is, the dog. On a concluding note, the long run health of any company depends on having some products that generates cash (and provide acceptable reported profits) and others that use cash to support growth, with no exception to ‘Lord’s Ice-cream Parlour’. Among the indicators of the overall health are the size and vulnerability of the cash cows, the prospects for the stars, the number of problem child, and dogs if many.

SWOT Analysis

SWOT is the planning exercise used by ‘Lords Ice-cream Parlour’, which provides a framework for identifying internal strengths and weakness and the external opportunities and threats it faces.

Weaknesses

  • The major weaknesses of ‘Lords Ice-cream Parlour’ comprises of:
  • Incurrence of high-level expenses in the Research and Development (R) sector.
  • High operating and maintenance expenses resulting from the large size of the business.
  • Excessive reliance on foreign suppliers.
  • Entering new related businesses – This is also visible through its new items as Ammo milkshake.
  • Widening the product range.
  • Seeking faster market growth.
  • Exploiting new market segments.
  • Changes in demographic factors.

Change in consumer taste

This might result if there is an increased awareness among the health conscious people, which may cause a decline in the purchase of ice cream.

  • Increase in foreign competition.
  • Rise in new or substitute products.
  • Changes in Political factors.

Target audience

The kind of market ‘Lords Ice-cream Parlour’ operates in is characterized by the volatility of its general environment, the dynamism of its competitors and most of all the varying and the inconsistency of needs and buying preferences of the consumers market, which are important consideration guiding their day to day operations.

Keeping this in mind, ‘Lords Ice-cream Parlour’ has developed sound marketing programs, which starts with identifying the differences that exists within a market, deciding which segments will be selected and developing specific marketing mixes so as to influence intended customers, and overall perception of the brand, ‘Lords Ice-cream Parlour’ . Market Segmentation ‘Lords Ice-cream Parlour’ has designed various marketing mixes according to the different products needs and preferences with regard to the consumer market and has clustered people with similar needs into selected segments.

Domestic Market Segmentation

For a consumer-oriented company like ‘Lords Ice-cream Parlour’, whose main operations rallies around the domestic market, a lion’s share of its resources is devoted towards serving the domestic consumer segments. After thorough analysis, behaviour and demographic segments have been identified as their prime areas of focus. Demographic Segmentation From the viewpoint of an ice cream manufacturing company, demographic segmentation holds importance in terms of its close relation to customer product needs and purchasing behaviour and the ready measurability of variables such as consumers’ age and life cycle and their income.

Age

This is the most important component of demographic segmentation. Over the years, ice creams were considered to as being more of a recreational product, but standing on this new century, the effect of globalization has placed ice cream as more of a regularity in our lives. ‘Lords Ice-cream Parlour’ has divided its markets in segments according to different age groups such as kids, teenagers, and the family range. Different ages of people are influenced by different flavours of ice cream, different presentations of packaging and different product attributes.

Kids incline more towards ice creams, which contains animated and colourful packaging, taste of sweet strawberry, fresh mango, pure vanilla, ripples, hazzle nut coating and crispy flakes. Teenagers prefer low calorie ice cream, more daring and wider range of tastes. Families are influenced more by ice creams that fulfil the general appeal and taste of all the members of the family. Income: Income is the key determinant of consumers buying behaviour. It is the most popular demographic variable for market segmentation.

For a larger part of the population to buy the product, it is very important to segment the market in different income groups. This is given utmost importance in London where there is wide variation in the average levels of income. ‘Lords Ice-cream Parlour’ has divided the market into three income groups – low-income group, mid-income group and high-income groups. Market Targeting After market segmentation, ‘Lords Ice-cream Parlour’ goes for designing, implementing and maintaining marketing mixes intended to meet the needs of the target groups, resulting in mutually satisfying exchanges.

Domestic Market Targeting

The two general strategies ‘Lords Ice-cream Parlour’ uses for selecting target markets are differentiated and undifferentiated marketing. Undifferentiated target strategies approach the segment as one big market with no individual segments and thus require a single marketing mix. Chocobar and the newly introduced Kulfi are the prime examples related to successful targeting of the mass market. Chocobar priced at 3. 4/-, mini chocobar priced at 2. and Kulfi priced at 1. 6 with sober colour packages enables ‘Lords Ice-cream Parlour’ to go for mass marketing. Market Positioning Positioning refers to developing a specific marketing mix to influence potential customers overall perception of a brand, product line or organization. The marketing manager of ‘Lords Ice-cream Parlour’ assumes a realistic view of how customers think about their offerings in the market. At the same time, the manger also knows how he wants target customers to think about its marketing mix.

According to him positioning issues are especially important when a competitor in a market appearsto be very similar, with the ice cream industry being a prime example. ‘Lords Ice-cream Parlour’ follows several positioning strategies.

Products

  • Attributes Macho
  • Exquisite Chocobar
  • Energetic Shell & Core
  • Metange Lolly
  • Eager Clown
  • Animating Mega
  • Energetic Coffee
  • Refreshing Ripple
  • Praiseworthy Pralin
  • Puissance Cornelli

Dual Usage Occasion: Usually consumers perceive ice cream as an integral part of summer. Lords Ice-cream Parlour’ aims at positioning ice creams to as being a winter item along with its regular summer item image. ‘Lords Ice-cream Parlour’ is trying to position its ice cream as a item for all seasons in other parts of the country like that is perceived in London, through different promotional activities.

Marketing Mix

There are many possible ways to satisfy the needs of target customers. A product can have many different features and quality levels. Service levels can be adjusted.

The package can be of various sizes, colors or materials. The brand name and warranty can be changed. Various advertising media – television, newspapers, magazines, radio, and billboard can be used to attract the potential customers. A company’s own sales force or other sales specialist can be used. Different prices can be charged. Price discounts may be given and so on. With so many possible variables, is there any way to help organize all these decisions and simplify the selection marketing mix? The answer is – The customer is surrounded by the four P’s.

There are additional three P’s newly invented by the marketer. An important point to note is the customer should be the target of all marketing efforts but it is not the part of the marketing mix. Hence, ‘Lords ice-cream parlour’ follows this concept and places its customers in the centre. Product: for ‘Lords ice-cream parlour’ the Product decisions revolve around developing the right product for the target market and this includes not only the physical unit but also features, brand name, company image, value and many other factors.

Apart from maintaining a superior quality through its imported ingredients and bringing regular production consultants from Belgium, Denmark and Holland, the units’ separate R department regularly can analyzes new products through its market research to answer questions as: At what price consumers would like to buy the product. Flavours and essence to be used. Consumers’ feedback. Analyze other markets. ‘Lords ice-cream parlour’s Product line includes distinctive ingredients, as some are vanilla flavour with chocolate hazelnut or milk coating, some may have crispy flakes, others include cashew nut.

On the other hand, to provide a taste of refreshment there are flavours including coffee, strawberry, mango, with almonds and ripples. Each of these delicacies has positioned itself as a unique brand in consumer’s mind. These eclectic tastes have been able to exceed consumer’s expectations resulting to delightful consumers and thus to the creation of a powerful company image. Apart from that ‘Lords ice-cream parlour’ also can operates through some trolleys for extending its reach to various consumers at different locations as schools, alleys, streets, parks e. . c. Consumers – Availability of scratch cards through purchase of certain flavoured ice creams enables consumers to obtain different types of gifts such as iPod, can be achieved by them. Also last year (2008) every purchase of Macho had a Kit Kat free.

People

The management of the ice-cream parlour is very particular about the selection of the people. They are hiring only the motivated, energetic and passionate people. The parlour has on job training and skill development continuous activity by which employee can be skilled. But from next year every after three months they are going to arrange a training and motivation program for the improvement of their business.

Growth Strategies

‘Lords ice-cream parlour’, like any other company, in order to maintain a stable growth rate, focuses on reviewing the existing operations, the evaluations and the creation of the new products by not only manufacturing the highest quality products but also delivering the product by maintaining this high quality. In seeking growth, ‘Lords ice-cream parlour’ considers both its market and its products.

It then decides whether to continue what it is doing – only do it better – or establish new venture. The product/market growth matrix depicts this option for ‘Lords ice-cream parlour’. The matrix is divided into four possible combinations of old and new products with old and new markets.

Market penetration

Here, ‘Lords ice-cream parlour’ tries to sell more of its present products to its present markets by the help of supporting tactics, which might include spending on price, promotion and packaging. For example, ‘Lords ice-cream parlour’ regularly alters its ice cream packaging, and provides occasion oriented price cut.

Market development

‘Lords ice-cream parlour’s market development strategy is evident by its entry to an entirely new area – Marble Arch. In future, ‘Lords ice-cream parlour’ plans to expand in other parts of London and are undergoing business consultancy of possible expansions in Netherlands.

Product development

Nothing is more important to a company’s long-term survival and growth then the successful introduction of new products.

By flipping through ‘Lords ice-cream parlour’sbook of achievements, it is evident that one of prime reasons for success has been due to constant introduction of new products. The exquisite Macho, energetic Mega, which hit the markets around two years back, were and are a real feast for ice cream lovers. The very recently introduced Kulfi has once again placed ‘Lords ice-cream parlour’ to as being a people’s brand providing a world of great taste, and which deciphers ‘Lords ice-cream parlour’s drive to maintain satisfaction of all segments of the market. Lords ice-cream parlour’ has, for the time being confined itself only to the ice cream business. Any diversification related businesses would be future-wise.

The Marketing Budget Recommendations

In spite of ‘Lords ice-cream parlour’s remarkable success certain loopholes in the marketing aspects has been detected. After my research I came up with some possible steps and solutions that we would like to state below. Competitors are an important component of the task environment. ‘Lords ice-cream parlour’ should pay heed to its potential competitors rather than treating them as mere counterparts.

Lords ice-cream parlour’ should involve in backward vertical integration to lower the costs of value creation and lessen its reliance on foreign suppliers. For instance, incidence such as credit crunch may hinder the flow of supplies in the production process when there is excessive dependence on foreign inputs. To enhance the maturity level, ‘Lords ice-cream parlour’ should undertake the task of sponsoring more social events such as concerts, cricket, football and other such tournaments to retain its popularity in the younger market segments.

Emphasize should be given on , to capture a greater share of the market. A proper customer help line should be developed to mitigate the further needs of the customer.

Conclusion

From an extensive marketing analysis of the ideas and marketing concepts at work in the operation of ‘Lords ice-cream parlour’, it is possible to obtain an insight to the essential marketing practices adopted by the company.

Adherence to proper marketing strategies in terms of company objectives, paying heed to target consumers and potential and existing competitors, close relationship and liaison with distributors and suppliers ensure substantial market capitalization as indicated by ‘Lords ice-cream parlour’s market share of 63% in the ice cream industry. Evidently by virtue of its unique product attributes, high quality, exquisite and mouth- watering varieties of ice creams, attractive and distinct packaging, ‘Lords ice-cream parlour’ has been able to ensure marketing excellence and enhance its competitiveness.

Today’s fiercely competitive environment compels ‘Lords ice-cream parlour’ to pursue the right set of pricing strategies, policies for effective segmentation and targeting, market oriented structures of distribution and retailing, which lies at the heart of the company’s success. Its new sales and distribution flow enables the company to achieve its desired goals. In its quest to create satisfying customer relationship and optimizing the performance of the entire system, ‘Lords ice-cream parlour’ has resorted to a system of timely distribution.

With the combination of effective promotional campaign and advertisement in various media, it is able to retain valuable customers and inform them about multiple brands they are offering at present.

Read more

Demographics Ice Cream Industry

The Canadian demographic for ice cream has been a constant presence of a sweet treat on a hot summer day. Thankfully, Canadians love ice cream, and enjoy it all year around. But, Just who is enjoying this delicious milky treat, and what opportunities and threats does that leave the ice cream industry with? Opportunities Canadians have loved ice cream for centuries, and it shows today as children as young as ages 2-12, and folks as mature as 75 and up love ice cream.

Parents have also been giving their children exposure to ice cream at ages as little as one year in moderation. This opportunity will allow ice cream to bring them childhood memories and friendly reminders of family days out and getting their cold treat. (With multiple tastes and flavors, Canadian ice cream is Just as diverse as its Country. Diversity allows for new flavors and mixtures to be created (Canadians Crazy for Ice Cream, 2010, Para. 5), and also allows for consideration of each person’s needs in ice cream as a product.

This diversity can be exampled by the amount that kosher ice cream as held the rate of 1,084 claims verses all natural (340 claims) and no fat (416 claims). Having the exposure to this demographic opens an opportunity for people with religious beliefs to feel confident about the product that ice cream can now mean to them. However, Canada’s ice cream doesn’t Just affect their Country, but also the United States of America. Canada’s export to the USA consisted of 10 million kilograms being distributed in the year 2010 alone. Government of Canada, 2012, Para.  Canadian and American trade reverse as an important factor to Canadian economies as they support each other in the hospitality, food, beverage, and service industries; of which ice cream belongs to.

In addition to Canadian ice cream spreading international success, Canadian branding has brought success to the ice cream demographic with innovative ways of improving ice cream. For example, Nestle products lead ice cream in 2012 with 34% thanks to its popular trend of Drumsticks and Hagen-Dads brand names. This act of branding contributes to trending hen entered into the market as media, grabbing the attention of adolescent teenagers, children and elderly consumers, who haven’t been able to forget the sweetness of ice cream. Regardless, no matter how fulfilling ice cream can be to one person or the next, there will always be threats to spreading the demographic. Micro environmental factors will always manage to steal some attention away from the ice cream world with threats such as direct competitors, indirect competitors, and changing seasons.

For example, a direct competitor with the Canadian ice cream industry would be the Canadian frozen yogurt industry. Not only is frozen yogurt starting to be seen as the healthier choice, but it’s also allowing consumers to go without ice cream all together based on manufacturing advances creating a great dairy experience without the calories, sugars, or digestive problems. However, even when health is put aside, frozen own creations.  Or, an indirect competitor would be Just as effective with freezes or a cold bottle of water. Also, read SWOT analysis of Ice Cream market

These two would be considered indirect because they would be grabbing the attention of the demographic on a hot mummer day since they are cheap, and effective. Yet, where there are microenvironmental factors, there’s also macro. Macro environmental factors are affected by natural disasters such as the fire that caused $million of damages at Chessman’s institution of Markedly (CATV Toronto, 2009, Para. 1& 16), which posed as a threat because the result was loss of an entire product plant as well as product growth.

Other macro-environmental factors also include the economy. If the economy goes down, the less people will spend money and the more they’ll cut out the little things, like ice cream. Other threats to obtaining the demographic p can be as simple as people who are lactose intolerant. Being lactose intolerant is actually having the high sugars in milk products not properly being broken down in the body. However, ice cream provides these high sugars, making it difficult and uncomfortable for the body to digest.   While this seems like a mild threat, it holds the value of over 7 million Canadians who suffer from lactose intolerance and are not able to enjoy milk products, resulting in a large loss.

Ice cream is becoming exposed to children at young ages. (Mapped, 2012, Para. 2) -This is an opportunity for the ice cream industry because as the ice cream industry grows, people grow with it. The early exposure of ice cream to children can create cravings, thus creating more growth in revenue for the industry.

Read more

Competition in the Uk Ice Cream Market

Table of contents

Competition in the UK Ice Cream Market SYNOPSIS. The UK ice –  cream market has undergone something of a transformation over the last fifteen years. It used to be dominated by Wall’s Ice Cream and Lyons Maid, and was perceived to be a mature and relatively dull market. Substantial changes to the market have occurred as a result of broad environmental changes, and the entry of new competition. A demographic shift (fewer children) left ice cream marketers searching for new growth segments; they responded by developing premium products targeted at adult consumers.

The market grew faster in value terms than in volume terms as the unit price increased. However, aggressive new competition, from Mars in particular, has brought about the demise of Lyons Maid and caused a substantial strategic rethink at Wall’s. Wall’s has tried to maintain its position in the impulse market by preventing retailers from stocking other companies’ products in the freezer cabinets that are supplied by Wall’s. Mars has challenged this policy on legal grounds, arguing that it is anti-competitive. LEARNING OBJECTIVES Rejuvenation of an industry, and a product, which was perceived to be mature and stable – Marketers facing an environmental challenge respond by identifying and developing new market opportunities – New entry competition radically alters the rules of the competitive game – Brand extension by confectionery manufacturers, taking much-loved confectionery products and converting them into successful ice cream brands – Legal and regulatory action can form a key part of a marketing strategy designed to undermine the position of a key rival Application of simple breakeven analysis to a marketing problem.

Questions for discussion:

♦   The case study contains examples of strategic marketing. List as many examples as you can find of this type of decision.

♦   Imagine that you are a strategic analyst working for Nestle SA in Switzerland. You have been asked to prepare a brief summary of competitive conditions in the UK ice cream market for the next board meeting.

♦   Suppose that one board director has argued that Nestle should sell its ice cream interest in the UK and withdraw from the market. That’s one strategic option.

What other options does Nestle have, and how do they compare with a strategic withdrawal?

Suggested answers:

♦   A very wide range of strategic marketing decisions is mentioned in the case study. Examples include:

  • New product development and brand extension decisions by Mars.
  • Product line and brand extension decisions by all major competitors.
  • Extensive market segmentation, targeting and positioning by all competitors.
  • Response to changing consumer tastes and changing demographic conditions (for example development of premium and super-premium products targeted at adults, with consequent repositioning required) Withdrawal of the Lyons Maid brand and replacement with the Nestle brand.
  • Response to changing competitive conditions, for example Bird’s Eye Walls response to new entry competition from Mars.

♦  Nestle has lost market share in the UK, and is firmly in the number three position behind Bird’s Eye Walls and Mars. The overall UK market showed 5. 6 per cent volume growth from 1994 to 1998, but only 3. 3 per cent value growth. Hence the unit value of ice cream products declined during this period, indicating a high degree of competition.

Both Bird’s Eye Walls and Mars have demonstrated considerable commitment to the UK market, in terms of brand building, product development, investment in distribution channels and so on. Therefore Nestle holds a minority share in a relatively slow-growing market, in which two well-entrenched competitive rivals seem determined to defend or enhance their own positions within the market. This situation is made rather worse by the fact that Nestle has done particularly badly (lost greatest market share) in the impulse sector, which is the sector with the highest profit margins, in which branded products are most successful.

It is worth noting that the Bird’s Eye Walls parent company, Unilever, uses acquisition as a component of its corporate strategy. The freezer cabinet dispute is worthy of mention as a component of competitive conditions, since it gives Bird’s Eye Walls preferential access to a large number of outlets for impulse ice cream.

♦   For this question we would recommend that students are encouraged to identify two or three alternatives to the ‘strategic withdrawal’ option, and that lists of pros and cons for each option should be drawn up before a recommendation is made for the preferred strategy.

An aggressive assault on the UK market in order to win market share from the rivals is clearly an option that should be considered. This would probably involve further new product development, repositioning, supported by extensive spending on advertising and promotions. Broadly speaking, a full frontal assault on a well-entrenched competitor with no obvious major weaknesses is deemed unlikely to succeed – but the option should be considered. It would probably make more sense to adopt a differentiation focus strategy, that is, to identify a segment of the market in which Nestle can offer some meaningful differentiation to customers.

The obvious segment in which Nestle has a potential advantage is the children’s segment, where it has a number of valuable brands with child appeal. Both of the major rivals have powerfully entrenched brands aimed at the adult market, but slightly less powerful children’s brands. However, one would have to assess the likely profitability of a strategy targeted at children, noting in passing the adverse demographics. Nevertheless, there is evidence both that children personally have growing spending power, and that they have increasing influence on parental spending patterns (so called ‘pester power’).

Read more

How Baskin-Robbins Is Trying Not to Disappear

Table of contents

If you look at Baskin-Robbins’ performance for 2013, you may think you’re adding the numbers wrong. The ice cream chain, whose parent company is Dunkin’ Brands, added only four new stores in the U.S. last year. That’s right – four. The craziest part: It was the first time the brand netted any new U.S. stores since 2006.

By contrast, Baskin-Robbins’ sister company added 371 new stores in the U.S. alone over the course of last year. Unsurprisingly, the donut chain’s national revenue drove 74 percent of its parent company’s ; Baskin-Robbins drove just six percent.

With Dunkin’ Donuts continuing to dominate, it’s almost a miracle that Baskin-Robbins keeps limping onward. In franchising, growth is key to survival; when the growth’s not there, the franchise is often sold off.  Darden Restaurants, for instance, said it would be spinning off its struggling Red Lobster unit to focus on faster growing chains. And Dunkin’ Brands itself isn’t a stranger to cutting off the weakest link, either, having sold the underperforming sandwich chain Togo’s Eateries in .

At one point, Dunkin’ seemed ready to let Baskin-Robbins slide. CEO Nigel Travis the ice cream chain received less support than it should have prior to Dunkin’ Brand’s new management in 2010.

However, today, the company is in it for the long haul. “We feel good about Baskin-Robbins’ performance in the U.S., where we have experienced three straight years of comparable store sales growth, and believe the brand is well-positioned for slow growth in the coming years,” says Bill Mitchell, president of Baskin-Robbins U.S. and Canada.

Baskin-Robbins isn’t trying to speed up much, but the ice cream chain is exploring growth in some unexpected areas. Here are three ways Baskin-Robbins is aiming to stay relevant today.

International presence

Baskin-Robbins’s hidden power is in its international growth. Even if the chain has stopped substantial expansion in the U.S. – Dunkin’ Brands expects five to 10 new stores in 2014 – the international community has not stopped buying Baskin-Robbins’s ice cream. Baskin-Robbins doesn’t break out international development, however, Michell says the company plans to open 300 to 400 new Dunkin’ Donuts and Baskin-Robbins outside the U.S. in 2014.

Even without the breakdown, it’s clear that Baskin-Robbins internationally is growing in a very different way than in the U.S. “Something that surprises many people is that Baskin-Robbins actually has more locations internationally than we have in the U.S.” says Mitchell. Nationally, Baskin-Robbins has 2,467 locations. , the chain has 4,833 shops in 45 countries, with 7 percent net unit growth in 2012. The brand is also celebrated abroad – Baskin-Robbins recently became the official ice cream of the Liverpool Football Club.

Further, these international locations are key to changing the way that Baskin-Robbins shops operate stateside. Key learnings from overseas are allowing Baskin-Robbins to revamp store design, operations and products. “The international Happy 1.0 restaurant design, which has been successfully introduced in markets such as Canada, Japan, Mexico, Singapore and South Korea, among other international markets, became the template for Baskin-Robbins’ new U.S. restaurant design, which began rolling out domestically last year,” says Mitchell. New flavors and ice-cream cake designs have also been rolled out internationally before being tested in the U.S.

Revamps

In the most typical of Baskin-Robbins’ solutions, Dunkin’ Brands is attempting to rebrand in the U.S. using international learnings. Dunkin’ Brands maintains separate advertising funds for Baskin-Robbins and Dunkin’ Donuts, with Baskin-Robbins’ annual ad budget reportedly totally $25 million compared to Dunkin’ Donuts’ $350 million. This, coupled with the frozen yogurt craze of recent years that has hampered ice cream franchises , has made it difficult for Baskin-Robbins to reestablish itself in any drastic manner. However, evidence of its attempts are there.

The biggest change was adopting a modernized store design pioneered abroad last year. Also notable is the constant rollout of new flavors. The chain that once advertised its variety with “31 flavors,” has now introduced more than 1,000 options, with site currently listing 53 picks.

Grocery stores

Baskin-Robbins announced earlier in February that it would begin selling ice cream and other frozen treats in supermarkets and grocery stores. This is the first time Baskin-Robbins packaged ice cream will be sold in grocery stores across the U.S. (though the company launched a line of Sherbet Flavored Freezer Bars in 2013). The products are in the process of rolling out at grocers including Ralphs, Food 4 Less, Jewel, Shaw’s and A&P.

“One of our goals with the launch of Baskin-Robbins packaged ice cream and ice cream bars at grocery stores across the U.S. is to raise further national awareness of the Baskin-Robbins brand, which in turn benefits our franchised Baskin-Robbins shops,” says Baskin-Robbins spokesperson Justin Drake. “In addition, a portion of sales of our packaged ice cream and ice cream bars will be contributed to Baskin-Robbins’ national advertising fund, which will directly impact marketing initiatives to further benefit the Baskin-Robbins brand.”

Will grocery stores provide the national boost that Baskin-Robbins needs? Only time will tell. However, with slow changes, Baskin-Robbins seems willing to play the long game as Dunkin’ Donuts continues to support Dunkin’ Brands with its more explosive growth.

Read more

Kwality Walls vs Dinshaw

Table of contents

T ABLE OF CONTENTS 1. Acknowledgements. 2. Introduction a. Objectives. b. Limitations. 3. Research Methodology. 4. Findings. 5. Conclusions. 6. Appendices. 7. References. ACKNOWLEDGEMENTS Any accomplishment requires the effort of many people and this work is not different. I am thankful to my faculty Supervisor Mr. C. P. Giri for supporting me and guiding me throughout the project. This report would not have been possible without her help.

I am equally thankful to the Principal, INC Rourkela, Mr. D. P. Das for encouraging me and inspiring me to do my project with full dedication. PRANAB MISHRA

Introduction

Ice Cream is the most famous delicacy all over the world. People of all ages love ice cream and frequently enjoy it. Here are some amazing facts about ice cream: Nero (37-68 A. D. ), The Roman Emperor, is said to have eaten a sort of water-ice. The Chinese claim that they have been making and consuming Ice Cream since ages. Supposedly, Marco Polo (1254 – 1324) carried the Chinese Ice Cream recipes back with him to Venice.

These were then introduced to the French by Italian chefs retinue of Catherine de? Medici when she married Henri II of France. Royal Ice Cellars were built in Mesopotamia in around 2000 B. C. These were used to cool wines and foods During the late 1600s, The French King Louis XIV was known to have feasts with colored water-ice and liqueurs. Nicholas Lemery’s Recueil de curiositez rares et nouvelles de plus admirables effets de la nature, published in 1674, contained the first recipe for flavored ices. The Quaker colonists who brought their ice cream recipes with them introduced ice cream to the United States.

It is said that Ice Cream was regularly consumed by Ben Franklin, George Washington, and Thomas Jefferson. During the eighteenth century, the spread of ice pails and cookery books with ice recipes, almost everywhere around the globe, resulted in the delicacy becoming more common. Robert Green, in 1874, is supposed to have invented the Ice Cream Soda, which took ice cream consumption in America and other parts of the world to great heights. The twentieth century saw an explosion of sorts in the popularity of ice cream owing to availability of cheap refrigeration.

Italian confectioners made Gelato, their own form of Ice Cream, which became immensely famous due its texture and lightness. During the St. Louis World’s Fair in 1904, cones were used for the first time to serve Ice Cream. A chemical research team in Britain came up with the soft ice cream, which had more air in it. It became immensely popular because of its creamy yet light texture. Today, it is popularly known as the ‘Softy’ ice cream. • In the 1980s, the older, thicker ice creams made a comeback and were referred to as ‘Premium’ Ice Creams. Basically the ice-cream business comes under FMCG sector.

In India, the condition of FMCG sector is very well and challenging. India is an important market for FMCG players. The Indian FMCG sector is the fourth largest sector in the economy with a total market size of around US$ 18. 1 bn. Ice-Cream segment of FMCG:Ice-cream is one of the most important part of FMCG sector. It comes under Food and Beverage segment. The total market value of Ice-cream trade in India is more than Rs. 20000 crore. It is increasing day per day. During the year of 2002-02, there was very little demand of Ice-cream in India but as the time passed away, the demand of Ice-cream is also increasing in India.

Now a day, there are six national level companies engaged in dealing with Ice-cream including two MNCs. The demand of Ice-cream is also increases in India. As the demand of Ice-cream is increasing in India but the market of Ice-cream is not as much as it’s share in US and some other foreign countries. According to the survey of Motilal Oshwal, in the present time, the per capita consumption of Ice-cream in India is US $0. 2 which is US $49 in USA and US $33 in Germany.

As given in the above table, the per capita consumption of Ice-cream in India is only US $0. 2 which is much smaller than the same in USA, but the main thing is the increasing opportunities for Ice-cream trade.

Major Factors

  1. The broad market of semi urban market.
  2. Least no. of competition.
  3. Increase in consumption level of people.
  4. Favorable climate for ice-cream in India.
  5. GDP growth and growth in per capita income.

As given in the table, the GDP of India is increasing in the last 5 years.

It has brought a remarkable change in the spending habits of consumers; it has moved the consumer’s preferences from economic to premium products. In those days, people unhasitantly wants to spend money on good and quality products. It has been a gain for food and beverage industry. As the result the ice cream industry is also improving and it develops at an increasing rate.

The Three Stages In Consumption Process Of Icecream

Pre-purchase:- Brand image, Health issues, suitability Brand image of the ice cream – The consumer considers the kind of image the brand that he is going to purchase depicts.

It has to suit certain status symbol, quality and any other personal brand requirements that the consumer may have. It is important that the brand maintains good will, satisfactory to the consumer Health Issue to ice creams relating-The modern consumer is highly health conscious and is becoming aware of the rising health issues and its impacts. It is important that the brand satisfies this need of the consumers and ensures health related gains rather than loss. About which we will be discussing further in this report. Suitability – The product should suit the taste, flavor and ingredients that is in line with the consumer needs and wants.

Purchase:-Price, Environment, Service Price of ice cream -Price should be affordable and the product should provide money’s worth in terms of quality, quantity and consumer satisfaction. as kids also form a main segment of our section a proper care should be given as far as pricing is concerned. Environment-The environment should be such that the consumer wants to stay there and spent some quality and quantity time. Service- The service should be fast so that the customer waiting time should be less and leads to their satisfaction and results in formation of good brand image. Post-purchase:- Quality, Satisfaction, Store experience

Quality of ice cream – the quality of the ice cream delivered certainly plays a vital role in determining whether the customer will re purchase the brand or not. The quality and taste of ice cream determines the satisfaction level of the customer and hence plays a vital role in determining his approach towards the product. Satisfaction from ice cream- well satisfaction is a holistic picture the total experience of the customer with the brand considering various factors as mentioned above and then finally arriving at a conclusion saying whether he is satisfied or not from the product.

Objectives

 Explore the mindset of the consumer towards ice-cream. • Understanding the buying behavior and thinking about Kwality Walls and Dinshaw`s ice cream. • Find out the preference of the consumer regarding the two brands. • Investigate the purchase of Kwality Walls over Dinshaw`s ice cream irrespective of demographic structure in Rourkela city. • Have comparative study of value of products of both the brands. • Determine the customer awareness regarding both the brands.

Limitations

Since ice-cream being an entertainment retailers are not able to highlight the exact attributes. Convenience sampling used here has its own limitations. • There have been some inaccuracies due to non – cooperative and rude behavior of the respondents. • Due to unavailability of accurate secondary data, my reliance was made on the primary data. • When I interviewed children and teenagers, sometimes they use to give answers under the influence of their parents or elders. • Dinshaw`s ice cream has no homepage. • Few outlets for Kwality Wall`s ice cream. RESEARCH METHOD SAMPLING METHOD Convenience sampling was used by the researcher because it is easy and cheap to collect data.

Moreover the population size was very large to cover so it was best to use convenience sampling. DATA COLLECTION Both Primary as well as Secondary Research Method has been included for preparing this final report. PRIMARY SOURCE • Observation • Personal Interviews OBSERVATIONS – It is the methods of nothing and recording information without asking specific question from the respondents. The advantage of this method is that it is highly effective to provide information asked for. PERSONAL INTERVIEWS – In this method I asks the question from the performa in the order questions are listed and record the replies.

SECONDARY SOURCE • Google search engine. • Other web links. COMPANY PROFILE KWALITY ICE CREAM Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale. As the ice-cream industry exploded in India, in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back. The Indian consumer market was introduced to “KWALITY WALLS” – the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality.

Though the two giants eventually parted ways, the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market. Today, Kwality is not just a brand – it is the ice-cream associated with the Indian summer; it’s the first choice in ice-cream for any child or adult during the scorching Indian summers. Kwality ice-creams are trusted not only for their rich, creamy flavours, but also for their trusted quality and nutritious food value. PRODUCT PROFILE Type Selection Tiramisu Nochiola Caramel Crunch Cookies n Cream Fruit n Nut Mocha Brownie Fudge Paddle Pop Black Grape Jelly Candy Cake Xplosion

Choco Berry Nova Choco Vanilla Feast Chocobar, Chocolate, Almond Fudge, Fruit n Nut, Moo Stick Sandwich Multi Cornetto Snackers Filrty Strawberry Choco Fudge Butter Scotch Italian Gelato DINSHAW’S ICE CREAM INCEPTION Early 1930s: Two enterprising brothers, DINSHAW and ERUCH RANA, started a small dairy business in Gittikhadan, on the outskirts of Nagpur. Their obsession with quality and transparent business practices, brought prosperity and confidence to the young businessmen. When opportunity knocked in the form of an Englishman who suggested that they try manufacturing ice cream, the idea was readily translated into reality. DINSHAW’S ICE CREAM” was born in 1933 when Nagpurians came to know the creamy, hand churned delicacy. INTIAL GROWTH An alien concept, ice cream eating was considered a luxury, which could only be indulged in, on very special days during the sweltering heat of Nagpur’s grueling summer. The conviction of their ultimate success, and the vision of these young entrepreneurs, far outweighed the difficulties of running a purely seasonal business with its vagaries of demand . By mid forties, Nagpur’s gentry had extended ice cream eating into the winter and the name DINSHAW’S had become synonymous with the ice cream in Nagpur.

THE SECOND GENERATION GROWTH: SAM DINSHAW RANA and JIMMY ERUCH RANA put on the mantles of their august fathers. Burning with the same zeal to succeed, the same uncompromising attitude towards quality and service, the Rana cousins struck out for wider horizons in 1981. With an investment of just Rs. 5 Lakhs, a small factory came up to replace the cattle pounds. The dairy business gracefully gave way to its prospering offspring, the ice-cream business. The magic of” “DINSHAW’S goodwill spawned a net work of enthusiastic dealer-franchises all over central India, where DINSHAW’S enjoy near monopoly even today.

Success breeds Success. The sound business principles of the founders, which gave them their initial success, became the foundation of DINSHAW’S business edifice. Quality consciousness went beyond the quality of relations with employees, business associates and its ultimate consumer. By 1987 DINSHAW’S was known in central India as not only the company, which made the best ice creams, but also the company that built best relations. Persistent efforts from prospective distributors and dealers of other areas and greater demand for varieties from existing areas forced DINSHAW’S to expand its manufacturing capacities.

Imported continuous freezers expand plants and storage facilities wide with market demand. By 1989 cold storage depots had sprung up in Raipur, Jabalpur, Indore, Akola, Aurangabad, Pune, Hyderabad, Guntur and Vishakhapatnam more by pressures of demand than by design. Consumer appreciation for its products and for its credo of “VALUE FOR MONEY” forced continuous expansion and modernization of manufacturing capacities which today are to the tune of 35000 Liters of ice-cream per day. By 1990 the business was experiencing difficulty in getting regular supplies of good quality to need its ever-increasing needs.

The obstacles were turned into an opportunity to diversify into Diary business. The firm had turned full circle by coming back to its parent business of Diary which today has a capacity to process and pouch 1lac liters of Milk per day. The citizens of Nagpur who were dependent only on milk supplied by Government Milk Scheme and local vendors welcomed the supply of standardized quality milk and DINSHAW’S became the first branded milk to be sold in Nagpur. Being a responsible corporate citizen and being aware of the needs of protecting its environment, DINSHAW’S have invested more than Rs. 0 lakhs in an Effluent Treatment Plant, which is a model for any industry of its size. As in all other areas, Dinshaw’s foray in Bombay has been on a low key. DINSHAW’S have been able to grow in the face of competition from national and multinational giants of the industry because of the inherent strength of its products, policies and people. PRODUCT PROFILE Type Cups Fundae Strawberry Vanilla Big Cups Kesar pista Choco chips Kaju Kismis Butter Scotch Mango Pista Strawberry Vanilla Bars Ice Lolies Heart Beat Tripple Treat Champ Choco bar Choco bar Kulfi Take Home Packs

Family Tubs Anjir Badam Mocha Almond Banana Split Kesar Kamaal King Alphanso Fruit Overload Choco Chips Butter Scotch Pineapple Supreme Smart Packs Smart Raspberry Smart Mango Tago Family Packs Vanilla Strawberry Pista Party Packs Kesar Pista Butter Scotch 3 in 1 Strawberry Vanilla Log Lamour Club Pack Novelties Sundaes Maha Sundae Butter Scotch Mocha Almond Fruity Fundae Novelties Cassatta Flora Kulfi Yorker Cones Carnival Butter Scotch Choco chips Orange city Badam Roasted ANALYSING AND INTERPRETETION Credit period Company Kwality Walls Dinshaw’s • Days 5-6 days 7 days

The credit period given by Dinshaw`s is 7 days as compared to Kwality Walls which is providing credit period of 5-6 days. Complain Company Kwality Walls Dinshaw’s Major complaint Delivery time is high Poor service during peak season Rating ** ** Rating levels **** 100% satisfied *** More than 80% ** More than 60 % * Below 60% • It was observed that the dealers are complaining. • 4 star systems is used to find the satisfaction level. Margin structure Brand`s Name Kwality Walls Dinshaws Margin to Distributor 8% 10% • Margin to Retailer 22% 25. 50% Dinshaws is giving more margin than Kwality Walls. Market share (Product wise)

Product Strawberry Chocolate Mango Vanilla Others • Percentage 30% 18% 18% 14% 20% Even after the entry so many differentiated product ranges Strawberry is still ruling the market. Importance of Attributes Attributes Taste Price Company Image Advertisement • Conscious 39% 44% 6. 5% 10% It is observed that the people in Rourkela city are more conscious about Price than Taste. These are the four factors which affects the buyers’ decision process. CS ON UMP IO O IC -C E T N F E R AM TEE NAGE R CHILD ADULT OLDPE ON RS Data 41% regarding different consumer’s choice 23% 21% 15% TE ENAG R E CHILD ADULT OLDPERSON

The above graph is showing the demand of ice-cream among the different age level of consumers. As per above data chart, the consumption of ice-cream is more among the teenagers. Due to the season, trend, advertisement, and some other requirements, they prefer ice-cream much more. At the present time, the 41% of total consumption of ice-cream is done by teenagers. Children are second most demandable consumer for ice-cream. In the other sense we can say that the children are the way to turn a person’s mindset for purchasing of goods. Present time, there are 23% of total consumption of ice-cream is done by children.

From the last few years, the demand of ice-cream is increased among the service persons, college students, sports persons etc. the 21% of total consumption of ice-cream is made by adult persons. There are some flavors of ice-cream like strawberry, chocolate etc are most preferred by old peoples. 15% of total consumption is done by old persons. Quality COMPARE QUALITY OF BOTH ICE-CREAM COMPANY PRODUCT AWARENESS All people are known about dinshaws ice-cream. Market Share (Kwality walls vs. Dinshaws) The following table shows the market share of each company in Nasik ice-cream market. Company

Kwality Walls Percentage 9% Dinshaws 23% Dinshaws ice-cream share is 23% in Rourkela ice cream market. dinshaws ice-cream has also exclusive parlors.

Literature Review

Today Consumers have higher expectations than ever before. They want products to match these expectations. They also want accurate, up-to-date and useful information about what they buy and above all they need Quality According to the report of Sumit Kukreja, a management trainee from Amity University, food and beverages are the one of the largest growing trade in FMCG sector and ice-cream is the pathfinder of this trade.

The continues grow in the demand of ice-cream in India is showing the great opportunity in future. Motilal Oshwal, a marketing research company has been reported that the growth rate of icecream in India is steady but it increasing in the future. Survey by A. C. Nielsen shows about 71 per cent of Indian take notice of pack-aged goods’ labels containing nutritional, information compared to two years ago which was only 59 per cent. India is the largest milk producer in the world, yet only around 15 per cent of the milk is processed. The organized liquid milk business is in its infancy and also has large long-term growth potential.

Even investment opportunities exist in value-added products like desserts, puddings etc. According to CMIE Data, Aggregate sale of this industry is expected to increase by 19. 2 per cent during the December 2009 quarter. FINDINGS 1. The basic reason of buying that brand most of the answers were quality, availability, packaging and the decor of the store. 2. Consumers preferring DINSHAW`S and KWALITY WALLS were a bit price conscious though but they agreed that they do look for more quality and taste. 3. The advertisements and offers do influence consumers purchase behavior regarding ice cream. 4.

The basic needs that consumers want to fulfill through an ice cream are taste and quality. And that without providing taste it is not possible to sell a product like ice cream. 5. Any ice cream brand in the town should have innovative packaging, more flavors, availability, natural elements etc. to cater to their unfulfilled needs. 6. There is lack of Sales Promotional Activities i. e. free tattoo, extra weight, toys, quiz contest etc. 7. Some of retailers places both brands according to consciousness and demand of customer 8. Dinshaws ice-cream share is 23% in Rourkela ice cream market whereas Kwality walls has only 9% market share. . The quality of Dinshaws ice cream is better than . 10. Dinshaws ice-cream has different variety of ice-cream. They have provided many packs such as select & premium. These two have provided the customer to choose a pack of his choice.

Conclusion

The response regarding both the companies varies from person to person. India has a good potential market for the ice-cream; research shows that an average Indian eats ice-cream four times a year so company must try to increase this rate by promoting effective campaign.Taste and price are the two main attributes that people feel important for the purchase of ice-cream. During survey it was found that Kwality Walls has less visibility, which has capability to retain image in consumers mind. So it is very necessary to increase it. Rourkela has lots of nearby places for picnic, which remains overcrowded on weekends, so more mobile vans should be added to increase the sales. Some of the innovative ideas should be made for the high selling retailers. Such as forming the club and giving them special packages which will encourage the dealers. To attract youths, sponsorship programs needs to be taken. The rates of all the companies are generally equal. But special item of ice-cream’s rates are different. Such as party packs, family packs, novelty & other the rates, which are equal of all the companies in regular items such as Ice candy, Bar, Cone, Small Cups & Large Cups. Finally I would like to conclude that as far as Rourkela city is concerned people purchase more of Dinshaws ice cream instead of Kwality Walls ice cream.

References

  1. http://www. kwalitywalls. in/hoic. htm
  2. http://www. kwalitywalls. in/freezer.
  3. htm http://www. hul. co. in/brands/kwality_walls. asp
  4. http://www. scribed. com http://www. google. com

Read more

Ice Cream History

Nick Fri**** Speech 8th Informational Speech History of Ice Cream Introduction: Welcome everyone, I’m going to be talking to you about the history of ice cream. The beginning of Ice Cream History: -There was many stories that were told about who created ice cream and when it was created. -The most popular myth is that a Roman Emperor named Nero had his slaves fetch him snow from the mountains and had honey, or fruit toppings poured over it. However, pouring honey over snow is not actually making ice cream. Ice cream was most likely brought from China back to Europe, because of King Tang from China, had a method of creating ice and milk combinations. Over time, recipes for ices, sherbets, and milk ices evolved from the French and the Italians. -After the dessert was imported to the United States, it was given to a lot of famous people, like Thomas Jefferson and George Washington. And it was even recorded that in the 1700’s, that the Governor of Maryland served ice cream to his guests. -The first ice cream parlor in America opened in New York City in 1776. American colonists were the first to use the term “ice cream”.

The name came from the term “iced cream” which was similar to “iced tea”. But the name was soon abbreviated to ice cream. (Show Photo 3) Methods & Technology: -The method of using ice mixed with salt to lower and control the temperature of ice cream ingredients during its making was a major breakthrough in ice cream technology. -In 1846, Nancy Johnson created the hand-cranked freezer that established the basic method of making ice cream still used today. (Show Photo 1) -Before the hand-cranked freezer, Ice cream was made by hand in a large bowl placed inside a tub filled with ice and salt.

This was called the pot-freezer method. The hand-cranked freezer of course was better, and it produced smoother ice cream in a much quicker time. Ice Cream Sodas: -In the 1870’s adding ice cream to soda was popular. They had cola floats, which was coca cola with vanilla ice cream and root beer floats, which were also known as brown cows. There was other flavors like Orange Float, and Purple cow, which is orange or grape soda with vanilla ice cream. (Show Photo 2) Sundae: -Sundaes were probably named after the first day of the week. One popular tale was that many places banned selling sodas on Sunday.

So one day, a person put ice cream and syrup in a dish, and the gooey result was a hit. Ice Cream Cone: -No one really knows who made the first ice cream cone. But at the St. Louis World Fair, many people first saw ice cream in an eatable waffle-shaped cone. Eskimo Pie: -The Eskimo Pie bar was created by Chris Nelson, an ice cream shop owner from Iowa. He came up with the idea in the spring of 1920, when a kid came into his store, and had a hard time choosing from an ice cream sandwich and a chocolate bar. So he created ice cream covered in chocolate on a stick. Health Issues: Medical issues with ices and ice cream was and is ever changing. -In the 17th century some believed that it’s cold temperature would cause paralysis. And some say it was just thing to cure scurvy, and extreme weight loss. -In the 19th century it was believed that eating ice cream chilled the stomach and stopped digestion. It was also considered a healthy treat for children. -In the late 20th century, Americans blame ice cream for coronary artery disease. -Yet, in every era, praised or hated, it has been a much-loved dessert. Conclusion: -Thank you everyone for listening to me talk about the history of Ice Cream and have a good day.

Work Cited

  1. Bellis, Mary. “Children making ice cream in Caswell County, North Carolina”. n. d. About. com. Web. 06 Oct. 2012.
  2. “Root Beer Floats”. 12 Sept. 2012. Elk Grove News. Web. 06 Oct. 2012.
  3. “First American Ice Cream Parlor”. n. d. Snowball Machinery. Web. 07 Oct. 2012.
  4. Quinzio, Jeri. Of Sugar and Snow: A History of Ice Cream Making. Berkeley, CA: University of California, 2009.
  5. Print. Funderburg, Anne Cooper. Chocolate, Strawberry, and Vanilla: A History of American Ice Cream. Bowling Green, OH: Bowling Green State University Popular, 1995. Print.

Read more

Neilsen’s Ice Cream – Marketing Game

Table of contents

Training for management

Training result-oriented work. Training in team building. Flexible working conditions. Music workplace. To start off the research and development, we more so went with our best guess, feeling that this round would truly come close to being somewhat of a trial and error round.

So the numbers for research and development are as follows: Process:

Standard Ice Cream 1000 euro
Luxury Ice Cream 2100 euro
Special Ice Cream 2600 euro
Sugar-Free 2400 euro
Ice Cream 2200 euro

Round 2

Looking at the results from the previous round we made according to adjustments, which are as follows.

Standard Ice Cream

With a starting price of 280 euros for the standard ice cream, the product did fairly well on the market. Our market share of the standard ice cream is 29%, which is pleasing, but staying there will be tough. A small change in the price will be made in order to see if demand goes up or down, or is affected. We will still continue promoting the product a commercial approach, and continue with the same amount of money for the budget (4000 euro). Special Ice Cream Nielsen’s strongest product was our Special Ice Creams with an amount of 483. We won’t change anything on this product and will see if this does affect the company results in the next round. We will purchase 600 new items for the next round.

Luxury Ice Cream

Luxury Ice Cream did a good job in the previous round but can be improved by making some small changes. Nielsen changes the way of promoting to a Price/Quality advertisement, hoping that form of marketing will catch more attention.

Sugar-Free Ice Cream

We sold 387 units of Sugar-free ice creams last round, which is quite a high amount if you compare it with our competitors. To attempt to increase sales and market share, Nielsen will lower prices on this product from 285 to 280. The marketing budget of 4000 euro still stands and is put towards a commercial where they are telling about the price and quality relation.

Round 3

Standard Ice Cream

The standard ice cream was doing quite well in the last round, so we felt only minor changes were needed. We had an average quality for this standard ice cream which we changed into a high quality, this is due to we believe that in order to be competitive you can’t settle on average. We purchased 350 products with good quality. This high quality needs to be compensated by a higher price because if you are just higher your quality, you will lose money. We changed the price from 285 to 295 euros. We are going to promote this product to a commercial which is giving the rich history of the product. Our marketing budget for the standard ice cream in this round is 4000 euros. With higher quality and higher prices, we should make some more profit out of our standard ice cream.

Special Ice Cream

Again it seems that the special ice cream is our strongest selling product. We had a price of 295 with good quality. The changes will be made to up the sales of this special ice cream. We increased the marketing budget from 4000 euros to 4100 euros, so that people won’t lose interest and also stay ahead of the competition. We invested this 4100 euro in a tv commercial where Nielsen’s is proud of the high level of quality at this special ice cream. Because of the high sales, we purchased 450 special ice cream on an excellent basis. The sales are very good for this special ice cream, so we made a decision to change the price from 295 to 300 euros. This shouldn’t make such an effect on people’s buying behavior. It’s in relation to change from good quality to an excellent quality of the purchased items.

Luxury Ice Cream

The sales of the luxury ice cream weren’t so high in the fourth period. There should be a reason for this, which we need to fix with making some changes. First, we want to change the price from 295 to 290. This should people make more convenient to buy our product. When you are just lowering the price, somebody has to know that you made these changes, so we hired up the marketing budget from 4000 to 4200. This money will be invested in a sales promotion, so on that, the sales will increase this product. As a result of bad sales in the previous round, we don’t need such a high purchase of products. We will purchase 150 luxury ice creams on a good quality base.

Sugar-Free Ice Cream

The sugar-Free Ice Cream was the weakest product of the 4. With 203 sales and a market share of 15%, the sugar-free ice cream performed very poorly. We need to change something to higher up the sales and the market share. We changed the price of the sugar-free ice cream from 280 to 270. We will promote these prices with a marketing budget of 4000 euros which won’t be changed from the previous round. This money will be invested in sponsoring, where we are telling that the sugar-free ice cream has the best quality. The sales were such as bad, that we don’t need much to purchase. We are purchasing 150 sugar-free ice creams, which should be enough because of an inventory of 400 stocks. Also in an attempt to sell more, we had a press release stating that we were offering for a limited time a Holiday Special Sale, which is why the price was then lowered by 10 euros. In Human Resources we were not performing well as far as our staff was concerned, so we decided to try increasing the education budget from ‘average – 2500’ to ‘good-4000’, in hopes that higher education will provide them with what they need to perform their job and possibly be more satisfied. Also, we felt that it was needed to make a few changes in the research and development area as a way to increase the sales of sugar-free ice cream.

Round 4

One key observation made after reviewing the results of the previous rounds was that with the increase to the education budget there was a slight positive movement in our internal sector. This prompted us to then not only give on more increase in the education budget but to also provide an increase in funding to the salary department. An unfortunate fallout however from a miscommunication between our group members was our inventory, and this is the round where we could have turned it around if caught in time, however, we neglected the round delay, and ended up running out of stock of certain products.

Round 6

The big change was within the Human Resources as well and the working conditions.

After examining the data a little more it was decided to change the working conditions to include the following: Lease espresso machine Training result-oriented work Lease ERP software using ASP Lease CRM software using ASP Flexible working conditions

Standard Ice Cream There were a few changes made in the marketing of this product due to declining sales. We went from focusing on the rich history to associating more with price/quality. The pricing seemed high as well so we lowered from 285-275, as well as adjusted the budget from 4100-4000. For an inventory, 280 products we purchased at a good quality Luxury Ice Cream We felt the only adjustment that should be made was in the pricing, which we lowered from 290-280. Since stocking was also an issue we felt it would be wise to order 400, rather than 150 as in the previous round Special Ice Cream. Pricing was a way too high, so it was determined that hurt our market share of this product the most over the past few rounds. In response, we lowered the price from 300 down to 280 but increased the budget from 4200 to 4300. Then we shifted the focus of the marketing from best quality to Price/Quality and ordered 350 in inventory at good quality rather than excellent. Sugar-Free Ice Cream Only adjustment made with this product was the purchase of 300 inventory. We looked at the results further and also concluded that we were missing out on market research, which was most definitely hurting our chances of competing. After discussing it, we determined that it was wise to purchase market research on the competitor’s prices and society’s values. The results from the pricing were shocking for us. The whole time our standard ice cream was far too overpriced, as was our sugar-free, but the changes made previous to the communications mix proved to be almost spot on with the research. But this information was taken heavily into consideration for the next round of decisions.

Round 7

Standard Ice Cream

With the huge price difference in our products versus the competitors, we decided that the price needed to be lowered immediately from 275 to 220. Marketing communication matches up with the society’s values research, but we ordered 300 in inventory and changed the quality to weak. Luxury Ice Cream Comparing our price to the research from the previous round we determined pricing was fine as is, but the marketing communications needed to be changed from price/quality to cheap. We then ordered 500 in inventory with hopes of high future sales. Special Ice Cream The pricing again matched up well enough to stay competitive so we adjusted the communication from price/quality to the best quality and also ordered 250 in inventory.

Sugar-Free Ice Cream

Another big price change was made when we saw that we were almost 20 euros more than the rest, so we dropped from 270 to 250, and also ordered 500 inventory hoping for increased sales. There was no change made for communications.

Round 8

Again we ran into the problem of running out of inventory, still not fully realizing the key was in what we were overlooking. With hopes to make one final comeback, we decided that it would be a good idea to have another press release announcing one more final sale. Looking back, I see that this may have been our fatal error.

In response to sending out the press release, our prices had to be lowered further and we did so as follows:

Standard Ice Cream 220 to 205
Luxury Ice Cream 280 to 250
Special Ice Cream 280 to 250
Sugar-Free Ice Cream 250 to 215

In combination with the lower prices, we also increased the marketing budget to 4500 for each product, in hopes of reaching more people with the new of the sale. We then stacked up inventory ordering 800 standards at weak quality, 800 Luxury average quality, 700 Special at average quality, and 800 Sugar-Free at average quality.

Conclusion

All in all the company would have been successful had it not been for the failure to realize the inventory situation earlier. Also, earlier purchasing of market research such as competitors’ pricing would have proven much more beneficial in earlier rounds. Nielsen’s actually had one of the highest company equities as well as the highest net turnover but dropped drastically in net profits in the final two rounds. Looking back all of these were very simple, if not too simple, mistakes that could have been avoided through clearer communication.

Read more
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp