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 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.


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. ”


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.


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.


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.


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 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.


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.


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.


  • 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.


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.


  • 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.


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.


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.

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