Organic Ice-cream: SWOT analysis



The production of the ice-cream in the Ottawa city would have a certain market share in regard to the population of the city that is around 800,000. In this situation there is like problems to encounter in the market as well as benefits. To sum up this, SWOT analyses would be the best formula to follow. Strengths In the manufacturing of ice cream, there target market has already been established, small and medium supermarkets therefore reducing the competition. There is a large population in the city that would probable be potential buyers of the product.

The target market is also quite large. The beverage market has been recording growth in the recent past and there are future prospects of growth. Therefore the target market is slowly expanding. Weakness The target market is quiet large and there are fears the demand for the ice-cream may outdo the capacity can be produced to satisfy the demands of the market. It is still not clearly established the rate of growth of the product in the market but there are expectation that the product will record a high growth rate.

This means that there will be a need to increase its production capacity in order to match the rate of growth of the market. Banking on the success of the other beverages in the market may have negative effects on the introduction of the new products in the market since the products will be targeting different markets. Opportunities The company is introducing its products in a growing market. This is a unique opportunity for the Ice-cream manufacture.

A stagnant market becomes difficult to introduce new products because there are already other companies which are likely to bring in competition. The company can use a wide range of marketing strategies which will lead to the overall growth of its product in the market. The Canadian advertising market has been growing at a rapid rate which means there will be an array of opportunities for the growth of the market. There are many advertising strategies for the company in the Canadian market. Threats There are threats of entry of other products in the market.

In this case there are threats of entry of new companies in the market which will increase the level of competition in the market. There are other restaurants which are likely to introduce the same products in the market once there is success of the initial product There is a threat of change of the current external environment which is likely to alter the nature of the market. For example change in the taxing regime, government laws regulating the industry, and other factors which are likely to impact negatively on the industry. (Ottawa-Gatuneau, 2006)

Segmentation Marketing segmentation is breaking the marketing strategies in to different segments depending on the business environment and the consumers’ response to the product. This is divided into two main categories namely Demographics and psychographics. Demographics are the average behaviors or characteristics of the consumers of the product that may include income, religion, age, and education. On the other hand, psychographics refers on further idea of the consumers that may include their interest, their characteristics and their values.

In the manufacturing of the organic ice cream, there is a need to know both the demographic and psychographics of the people who live in the business environment. Being in the cold weather there is likely hood that there would be low consumers of the product, there is a need to have the proper marketing power that would enable the product to sell despite of the cold weather. This could be done through targeting young generation that would purchase the product for their psychographic factor.

In consideration of the two factors, there is like hood that the product would sell regardless of the weather. (Ottawa-Gatuneau, 2006)

Reference: Ottawa-Gatuneau, (2001) Place of work status, Ottawa, Canada’s national statistical agency, retrieved from http/www12. statcan. ca/census06/data/topics/RetrieveProductTable. cfm? on 15th Oct 2008 Ottawa-Gatuneau, (2006) Place of work status, Ottawa, Canada’s national statistical agency, retrieved from http/www12. statcan. ca/census06/data/topics/RetrieveProductTable. cfm? on 15th Oct 2008

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