...evaluated the ice cream industry from a Porter’s Five Forces perspective to determine the attractiveness of the market. Next, we observed Amy’s Ice Creams’ strategy through interviews and class concepts to see how Amy’s competes. Then, we assessed the strengths and weaknesses of the company’s strategy to offer recommendations for Amy’s Ice Creams going forward. Production and Sales The biggest activities in the ice cream industry consist of production and sales. In 2011, U.S. manufacturers produced 1.53 billion gallons of ice cream, a 6.5 percent increase from 2009. In addition, U.S. ice cream sellers sold 25.4 billion servings of ice cream and other frozen desserts. This represents a 2.4 percent increase from the previous year, a slight increase after two year of stagnant sales (New Hope 360). There are two channels for ice cream sales. The first channel is food service where customers visit an ice cream parlor and pay a premium for the product. The second channel is retail where customers purchase their favorite brand of ice cream from a retail chain like Wal-Mart. Food services constitute a larger portion of the two channels accounting for 57 percent of overall ice cream sales (New Hope 360). Products The products in the ice cream industry include premium ice creams and novelties. Premium ice creams include sorbet, sherbet, and fruity flavored ice products packaged by the pint or quart. Novelties are separately packaged ice cream products like ice cream sandwiches...
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...PLAN OF SELECTA ICE CREAM I – EXECUTIVE SUMMARY Selecta’s humble beginnings can be traced to the Arce family’s ice cream parlor in Manila in 1948. Its ice cream was well-known for its creaminess, authentic flavours, and unique gold can packaging—qualities that remained throughout the years. In 1990, RFM Corporation bought Selecta from the Arce family to form Selecta Dairy Products, Inc. Known for its sharp entrepreneurship, RFM catapulted the rise of Selecta as a serious contender in the ice cream market always ahead in product innovations by creating new and exciting flavours like Cookies and Cream, Halo Halo, Ube Macapuno, and Chocolate Almond Fudge, and supported by heart-warming media campaigns that depict Selecta as an ice cream that creates family bonding moments. In 1997, Selecta became the market leader in the Philippine capital, which accounted for 60% of the nation’s ice cream consumption. In 1999, to complement its frozen novelties category and strengthen itself for competition, RFM teamed up with Unilever, the largest ice cream company in the world to form Selecta Walls Incorporated. The joint-venture proved to be a success and in 2000, Selecta defeats competition to become the national ice cream leader. And that has been the story since with its passion for exceeding the expectations of consumers, unwavering dedication to quality, and unrelenting quest to improve itself through its innovations, Selecta or Unilever RFM Ice Cream, Inc., sees itself...
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...Carvel must go after the “little Emperor” market segment and drive its Marketing strategy There is scope to create a new demand driven by the kids and disrupting the existing confectionary market segment for ice creams and cake ice creams in specific. First we shall eliminate the other 2 segments and then derive the fact as to why the segment of our choice is a clear winner. The below mentioned 2 segments have several benefits, such as existing knowledge, higher purchasing power, open mind for novel items and experiences but all of these would be diminished keeping the long term view in mind. Middle & Upper income working professionals: (drawbacks only) * Conservatizm , preventing risky purchases arising from the cultural opinion of cold being bad for health and with growing health awareness, thus thinking twice about their purchase. * Upper limit to market/ product development and lesser scope for innovation for expanding the market potential. * It is difficult to change existing mind-sets that are culturally driven. Expat Market: (drawbacks) Limited in population (100,000) No scope for further increasing the market or being able to capture other market segments because of focused marketing strategies for this group (ads in English which other segments might not understand) Focus Marketing resources on positioning in the “The Little Emperor Market” Behavioral: Kids are the center of parent’s universe; with growing awareness, accessibility...
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...Introduction Current Market size and growth Ice creams are available in various forms such as cone, cups, bar (candy), party pack etc. Candy sticks account for about 25-30% of volumes, whereas cups and other novelties contribute the rest. Frozen desserts market in India is very small and refers to oil fat (instead of milk fat) based ice creams. Besides, a wider range of frozen desserts is also made in-house and served in 5 star hotels. The ice cream market in India is currently estimated to be 210mn liter valued at Rs 450 crores (MRP Rs9bn). The market growth during the late '80s and in the early '90s was very low at around 2-3% pa. Since the last two years, the market has been witnessing a much faster growth at around 10-12%pa. The growth rate could have been even higher but for poor infrastructure, (still) high excise duty/ sales tax etc. Excise on ice cream was increased from 13% to 16% in the 1999-2000 budget. Market growth historically was stunted by Government policies. Till 1997, ice cream manufacture was reserved for small-scale sector. The leading players were unable to invest adequately to develop an infrastructure of cold chain for storage and distribution. Erratic supply and shortage of power in most parts of the country have been the major factors limiting growth of a cold chain. As a result, there was a dearth of good quality products in the market and also lack of adequate infrastructure to distribute the same. Cadbury had entered the market in 1992 with...
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...has a low per capita ice cream consumption of 300 ml per annum, the trend is slowly changing due to a number of reasons. DARE explores the dynamics of the business. Indian summers are synonymous with ice creams. Come summers, and you will see a number of colorful pushcarts selling the choicest of ice creams in numerous flavors from the traditional vanilla and chocolate to unusual varieties like Mother Diary’s Shahi Nazrana. If that doesn’t baffle you then the ice cream range definitely would, for example the ice cream range for the children would be entirely different from that for the teenagers or for that matter adults. Or, for those who like to have ice cream in peace, there are a number of ice cream parlors that are opening shop. But did you know that a 100 ml scoop of your favorite ice cream that you ordered may contain upto 50% air! This makes the business a highly profitable venture to get into – sometimes, the profits can go upto 100%! However, there are several challenges to this business as well. In this story, DARE attempts to find out the dynamics of the business. The Ice Cream Industry: An Overview Looking at some industry facts first. In 2007, the global market of ice creams was pegged at $61.6 billion in terms of retail value or 15 billion liters in terms of volume. Of this, the Asia-Pacific ice cream market was worth $13 billion in terms of retail value and 5,128 million liters in terms of volume. Coming to India, the Indian ice cream industry is currently...
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...To this day, the history of ice cream remains a mystery. However, many say that the first ice cream is credited to Emperor Nero of Rome. It was a mixture of snow, nectar, fruit pulp, and honey. Others proclaim that Marco Polo, a 13th century adventurer, brought ice cream to Europe from the Far East. However, regardless of where it came from, today's average American consumes 23.2 quarts of ice cream per year, with the first ice cream parlor in America opening in 1776 in New York City. So, which countries like ice cream the most? The United States, New Zealand, Denmark, and Australia top the list. The favorite flavor is the classic vanilla. Then comes chocolate, strawberry, neapolitan, and chocolate chip. How do these line up with your own list of favorites? The most popular topping for ice cream ---- chocolate syrup. Who would of thought;) Around 13% of men and 8% of women will admit to licking the bowl clean after eating ice cream. Biggest ice cream sundae - 12 ft tall! This one was made with 4,667 gallons of ice cream in California in 1985. The average single-scoop ice cream cone takes 50 licks to finish. Try it out with the following recipe. Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavourings and colourings are used in addition to (or in replacement...
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...Ice Cream and Frozen Desserts Industry The global retail ice cream industry revenue is estimated to reach $74 billion by 2018. Favorable demographic factors, rising consumer disposable income, and consumer's awareness toward frozen dessert mainly drive the demand. The retail ice cream industry includes retail sales of classic ice creams and frozen novelties. Classic ice cream includes special ice cream such as low-fat and non-fat, take home, and bulk ice creams. Frozen novelties include flavored ice, sorbet, and frozen yogurt. The industry is moderately capital-intensive as large numbers of players are competing with each other to maintain their place in the market. The classic ice cream segment contributed approximately 80% in global retail ice cream industry in 2012, whereas Nestle and Unilever, the two largest players captured one-third of the total market. New product development and innovation plays an important role as a growth driver for industry. Maintaining price and quality, brand loyalty, and consumer group retention are the biggest challenges for industry due to the large number of competitors in the market. This research indicates that in the future, innovative flavors in ice cream products with focus on health improvement will increase the per-household consumption, thus reflecting an increase in demand. Frozen novelties are forecast to witness strong growth during the next five years. U.S. ice cream and frozen dessert sales topped $25.1 billion in 2011...
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...Basic Essay Selling Ice Cream Introductory paragraph For many people, the summer months are a time for relaxed living and freedom from care. But as a softice-cream concessionaire on the Boardwalk in Atlantic City, I have never been able to share this attitude. I have, in fact, found that my job of selling ice cream during the summer can be a most trying and exasperating means of making a living. One must contend with government forms, the hired help, and most of all, the weather. Motivator Thesis statement mentioning three areas for discussion. Topic sentence The first big headache is the growing amount of forms and regulations with which the small businessman is swamped. There are census forms on materials consumed for the U.S. Agricultural Census Department, milk forms for the state labor board, sales tax forms, income tax forms, and dozens more. Every day seems to bring a new and more complicated form to contend with. One summer I recorded and paid a young lady of legal age an hour overtime pay, and I was harassed by a state investigator for permitting the employee to work one hour overtime, due to some silly state rule regarding female employees. Support by example Topic sentence Even more irritating than the government controls is the problem of securing efficient, dependable help. There are the incompetent ones who, even though taught how to use the cash register or to mix the ice cream, repeatedly make mistakes...
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...body. Living healthy, diets, and observing ones calorie and fat intake, makes it very difficult for ice cream brands to market and sell their products. Allergies and diet restrictions are very common in North American consumers. These factors play a large role in the competitive ice cream market. Each brand has to reach out to consumer’s needs and some do that better than others. Knowing which ice cream company is the best option for the health conscious consumer, is essential to stay fit but also to enjoy this classic dessert. Breyer’s is one of, if not the most popular brands of ice cream in North America. With major chain grocery stores and local ice cream parlors selling their products, Breyer’s has become a popular name in homes across Canada and the United States. For people who are concerned about their calorie intake, Breyer’s first ice cream the “Classic Vanilla” has a low Calorie count of 120 calories per serving (1/2 cup) .Fat is a concern for many people, but when eating a serving of Breyer’s Classic Vanilla it doesn’t have to be, due to a low fat content of 4g per serving (6% of the recommended Daily Value) (Breyer’s also offers their Vanilla ice cream in Creamery Style, for those who like a richer taste. This rich taste comes with a price of 140 calories per serving and 8g of fat (12% of the recommended daily value) Breyer’s is one of the most successful ice cream companies, but there are also many other competitors in this field of manufactured...
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...I. Challenges o After finding a partner who is willing to invest and become a partner in his business, Terry Smith is having difficulty in deciding whether he should make a counter offer to the proposal that his partner Barney Harris has made, to look for a new partner, or to walk away from the deal altogether. After re-evaluating the partnership proposal, Smith realized the real question was not whether the deal was good enough but whether the proposal will help him reach his goals. II. External environment o This Ice Cream Shoppe would be located in the southern region of the country in Gainesville, Florida with a population of 91,000 excluding students of the local university which enrolls about 38,000 students. Economically, marketing research shows that Gainesville can potentially surpass the average sales of some areas since it will be located in a college town. With many competitors in the frozen dessert industry in the area, Beano’s have received several competitive advantages in the industry because there are no national competitors of superpremium desserts, no local competitors have a place for customers to sit outside, and no local competitor has a policy of “giving back to the community”. With $40,000 invested in equipment for a Beano’s franchise shop, current use of technology seems to be of importance. o 5ForceM: New entrants: Increased competitive pressures from new entrants such as Starbucks, Colombo, TCBY, and Swensen’s; and new product development...
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...Case Study - Hannah’s Ice Cream Robert Maloni had dreamed of running his own business. He had taken business courses in high school and continued his studies in the Commerce program at the University of Ottawa. When he graduated, he became employed with the Waterloo Ice Cream Company and worked there for ten years. Working first as a sales representative, he then became a regional marketing director for southern Ontario. After ten years of travelling for his job, Robert wanted to settle down. With three small children of his own, he decided to go back to Elgin Beach where he had grown up so that he could live close to his parents and family. In Elgin Beach, Robert found a small business for sale that he thought would be perfect for him. Located on Elgin Beach’s main street and close to one of Lake Huron’s finest beaches, Hannah’s Ice Cream sells ice cream cones, sundaes, milkshakes and other ice cream products. The business had grown into a thriving enterprise over the years, and it was now an icon in the town. Well liked by the community, customers, and her staff, Hannah’s business had always been successful, but after 40 years it was time for her to retire. One of the reasons for Hannah’s success was her treatment of her employees. She paid her workers more than minimum wage, provided incentives, held employee improvement meetings, and listened to the staff’s ideas. This was very important because most of Hannah’s staff were teenagers. Her customers were teenagers too...
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...Chapter I Introduction Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavors. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavorings and colorings are used in addition to the natural ingredients. Philippines’ version for ice cream: Sorbetes is usually produced from unknown factories and sold from carts that roam the streets, exposing it to pollution. Thus, it is also called dirty ice cream; though it is not really dirty as the name implies. Kids love ice cream, and so do grown-ups, but to indulge in this frozen delight can mean a lot of fat and calories, depending on the choices. The calories in a cup of ice cream can vary anywhere from 180 to 600, depending on brand, fat content, sugar content, and flavor. Nonfat or fat-free ice creams contain virtually no fat: vegetable gums are added to make them creamy and mixtures are made in soft serve machines to whip in additional air and ice crystals. Most nonfat ice creams contain 90 to 100 calories per half cup but not all, leaving health-conscious consumers, who avoid calories and fat, fewer options, or none at all. A newly industrialized country, the Philippine economy has been transitioning from one based on agriculture to one based more on services and manufacturing. Despite this, the agricultural sector employs close to 32% of the country's total labor force of around...
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...Seibel’s Sundae Shop will offer products ranging from ice cream, frozen yogurt, toppings for both, and cakes and pies. The primary characteristics will be that it is made from scratch at the store, offering regular, gluten free and sugar free products. There will be a plethora of toppings ranging from candies, nuts, natural granolas, sauces and fresh fruits. We will refrain from having any items that contain peanuts to assist those who suffer from these allergies as well. The primary characteristics with our products will be that they are healthier than your average ice cream shop as well as providing products that meet the medical needs and concerns of a growing sector of our population. The service component to Seibel’s Sundae Shop is going to mainly be our devotion to exemplary customer service. When assisting our customers both in creating their own personal sundae creations, making a creation for those that choose to have the assistance, assisting in picking a specialty pie and cake and listening to their personal requests both for flavors and toppings that they would like to see us have available we will always greet them with a smile and assist them until their personal experience at Seibel’s Sundae Shop is a complete success. We will provide a party room that allows for birthday parties as well as just special parties that show people how we make the ice cream and let them make their own. We will provide all of the party planning that is needed to make these special...
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...Dung Le MKTG 351 Prof. Kondo ICE CREAM ASSIGNMENT Questions 1. In a typical southern California grocery store, what percentage of annual sales can be attributed to ice cream and frozen novelties (such as ice cream bars, packaged ice cream cones, etc.)? How did you come up with your answer? Answers: 6% of annual sale can be attributed to ice cream and frozen novelties, because ice cream and frozen novelties are considered as desserts not main meal, not the healthiest choice; they can be put on “want” category but not “need” category. Their high or low demand changes based on the seasons of the year; especially not many people buy ice cream during winter. Therefore consumption for ice cream is not stable as other food but elastic during a year 2. Based solely on what you observe in the store, did you visit the store during a busy season or a slow season for ice cream sales? Please explain your answer. Answer: I visited the store more often during busy seasons than slow seasons of ice cream sale since busy seasons are usually summer, late spring and fall. The weather and temperature are hot and high; people have more demand on something sweet and cold as ice cream 3. How have the ice cream manufacturers segmented the ice cream market? Answer: based on customers’ needs and wants, income, quality of products, place, ethic… there are many types of segments of ice creams. For example: On customer’s want and need: they have variety of flavor such as vanilla, chocolate...
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...Unilever: Globalising the ice cream business The ice cream market Key factors: Dynamism • Changeability • … So companies need to be extremely innovative and knowledgeable about market trends The world ice cream market can be described by the number of ice cream products sales, measured by their value or their volume (liters). The table shows the consumption data (per capita, in liters) of 18 As it can be clearly recognized, the selected countries for ice countries with the highest per capita cream and related products. consumption are New Zealand, United States and Australia. The ice cream Market competitors UNILEVER: Unilever is the world's biggest ice cream manufacturer, with an annual turnover of €5 billion. With the exception of its USA brandnames, the bulk of the company's ice cream business falls under its "Heartbrand" brand umbrella, so called because of the brand's heart-shaped logo. NESTLE’: Nestlè is the second big multinational competing on this market. Its global acquisitions strategy is similar to Unilever’s, although it got underway a few years later. Nestlè began constructing a global image for its products somewhat earlier than Unilever. MARS: Mars introduced ice cream into the market and wanted to build on the success of the Mars bars and branded the ice cream in the same way. They DIFFERENT OCCASION OF USAGE AND CHANNELS / Ice cream is sold through a number of different channels: DISTRIBUTION Impulse category: ice cream are consumed outdoors...
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