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Marketing strategy for ice cream products
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Haagen-Dazs
In the United States the premium ice cream market is declining and the low fat and yogurt market is growing because people are concerned about fat and cholesterol. Ice cream is high in cholesterol. People would rather buy a low fat ice cream or yogurt than a premium ice cream with more fat content. Haagen-Dazs has some disadvantages and advantages to making a low cost ice cream.
One of the disadvantages of Haagen-dazs making a low cost ice milk ice cream is the new low cost ice cream might take sales away from its more exspenive premium ice cream. Some people might buy the cheaper ice milk ice cream instead of the more expenive ice cream. Another thing is the haagen-dazs name will lose some of it prestige. The people who only buy Haagen-Dazs ice cream because they want to show other people they can afford the more exspensive ice cream, might not want to buy the premium ice cream anymore. They might swicth to another company premium ice cream because of their social needs to be better than others. If haagen-dazs starts producing a low cost ice cream it will lower the company standards. Another disadvantage of making a low cost ice cream is the cost to produce it. If it costs the same amount of money to produce the low cost ice cream as it does to produce the premiun ice cream producing the low cost ice cream would lower haagen- dazs profit. Haagen-Dazs would also have to spend money to start a new market development plan for its new ice cream. It would have to promote awareness for its new ice cream. Haageen-dazs also would have to give free samples of its new product to let people try the new ice cream The producer of Haagen-Dazs would have to ask themselves if it would to worth putting money in to adverting a new ice cream when their old ice cram is still making money for the company and is in the maturity stage of the life cycle. I think Haagen-Dazs premium ice cream is at the top of the of its product life line in the maturity area. It would not be a good idea for Haagen-Dazs to start a new product when their old product has many more years left before it will start declining.
An advantage of Haagen-Dazs producing a low cost ice cram is consumers are not brand loyal.
Everyone is looking for better and healthier life! People today pay more and more attention to the food they eat, they want it to be healthy and tasty, on the other side modern life is so dynamic and eventful, that the food must be fast. So you need to come up with something that will support all these needs. The great solution is Frozen Yogurt. It is a refreshing, savory dessert that combines the flavors and textures of ice cream and sherbet. Frozen yogurt is a new-comer in the dessert market. Nevertheless, “the history of frozen desserts dates back thousands of years to Asia where water ices were first made.’’ (wiki) Yogurt was brought to the U.S. in the early 1900s and steadily increased in popularity as a health food item over the next several decades. By the 1970s, with the popularity of ice cream technology was transferred to the production of frozen yogurt. But it’s entry into the dessert market was a distinct failure—consumers complained that it tasted too much like yogurt. Relaying on consumer demand for a sweet product that tasted like ice cream, TCBY opened its first store in 1981. The highest popularity comes to Fro-yo by the mid 1990s. But in the late 1990s as Americans turned their attention to high-protein, high-fat diets, demand for frozen yogurt slowed considerably. Low-fat foods such as frozen yogurt fell out of favor as food trends preferred higher fat and lower cost ice cream at the turn of the millennium. Trends changed back to frozen yogurt in the mid 2000s with the advent of live probiotic powder-based mixes. Over the last decade the production of frozen yogurt has grown multi-million dollar business with dozens of competing companies.
Companies realize what people need and they take it as sources to produce commodities. However, companies which have famous brands try to get people’s attention by developing their products. Because there are several options available of commodities, people might be in a dilemma to choose what product they looking for. In fact, that dilemma is not real, it is just what people want. That is what Steve McKevitt claims in his article “Everything Now”. When people go shopping there are limitless choices of one product made by different companies, all choices of this product basically do the same thing, but what makes them different is the brand’s name. Companies with brands are trying to get their consumers by presenting their commodities in ways which let people feel impressed, and that are some things they need to buy. This is what Anne Norton discussed in her article “The Signs of Shopping”. People are often deceived by some famous brands, which they will buy as useless commodities to feel they are distinctive.
The Russian Ice Cream market is worth $ 500 million, with Ice Fili as the market leader. The industry concentration, determined by the market share of the four largest firms in a sector is low for Russian ice-cream industry. It indicates that the industry is highly fragmented and competitive. The industry has experienced a low growth rate of ~ 3.5 % for the last two years and the other factors influencing the overall market size, like the population and the per capita consumption of ice cream have been stagnant over the years. The external factors like the shrinking frozen-foods imports market coupled with low entry barriers caused increase in the number of new entrants into the ice-cream market.
Currently, the company lacks of focus as it has a diverse product line with too many varieties of cheese products. With so many products it cannot be sure to decide as to which market segment to target in order to take the advantage of the growing market.
Staying in touch with their customers would not enable Ben and Jerry to be as successful as they have become if their ice cream was not high quality as well. The second value the company espouses is to use only wholesome, natural ingredients. They began their operation on this premise, utilizing fresh Vermont milk and cream to create their frozen concoctions. During a period of volatility in the dairy market in 1991, the company went so far as to pay a dairy premium totaling a half million dollars to combat Vermont dairy farmers’ losses. This helped protect the family farmers who supplied the milk for Ben and Jerry’s ice cream.
We at Temple Consulting have completed an analysis of Ice-Fili’s current corporate standing using data collected over the past several years. Using tools such as Porter’s Approach and SWOT we have analyzed the internal and external environments and have recommended several strategic plans of action. Current areas for improvement such as marketing initiatives and re-evaluation of distribution channels will increase sales and profitability almost instantly. Long term plans such as lobbying against luxury tax on ice cream, partnerships with franchise vendors, and bringing new products to the market, performing an IPO, and planning more global efforts will help keep Ice-Fili rooted as the industry leader in Russian ice cream production for years to come.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
Dealers don’t have the time to educate customer in each product of every line that they carry.
Dansk Designs Ltd., founded in 1955, is a company that markets stainless steel flatware. The firm traditionally followed a strategy of differentiation. They produce high quality products for the “top of the table”. Their goal was to reach a small market segment, which consisted of upper class, prestigious customers. Dansk Designs wanted to sell the concept of the Dansk brand, and believed their consumers would purchase the Dansk products because of the prominent brand name and because the products were the very best in taste and quality. Ted Nierenberg, the founder of Dansk Designs has recently decided that he wants to keep Dansk growing at 15% to 20% per year. Nierenberg feels as if his current product line will not provide sufficient growth to meet his objectives, and believes it is in the company’s best interest to introduce a new line of house ware products called Dansk Gourmet Designs Ltd. Nierenberg believes they should market this new line to a much wider group of consumers at competitive prices. However, I believe that although expanding into a new market with a new product line will increase short-term revenues, in the long run it will be detrimental because the new line will dilute the brand identity of Dansk Designs. If Nierenberg wants to grow every year 15% to 20%, I believe he should consider ways to lower costs instead of increasing volume and revenues.
Take a second to understand why fast food firms choose to sell products that are unhealthy. Their unhealthy products are in a high demand in the food market; in fact, they are simply giving us what we demand for. Most firms have started putting food labels on their menus so there is no room for excuse when making the right food choices. Nobody is forcing us to eat a whole box of Krispy crème donuts or a super-size meal at McDonalds. I believe that we are always looking for shortcuts in life and now we can anticipate there is a shortcut in what we put into our bodies. So we are consistently after things that are cheap, fast and affordable. Who better to attend to our needs than the fast food industry?
Threat of substitutes in market as best quality is not always a priority for some customers as they are price sensitive.
Americans today do not worry about the price of the milkshake as much as they did in the past. Today the focus on how healthy the milkshake are for them. “In 2006, the US Agricultural Research Service developed reduced-sugar, low-fat milk shakes for lunch programs. The shakes have half the sugar and only 10% of the fat of commercial fast-food shakes. The milkshakes also have added fiber and other nutrients, and they have much less lactose, which makes the shakes appropriate for some lactose intolerant people” ( History of milkshakes). With many Americans focusing on the health concerns the milkshake has changed for the better. Now that there are more options of milkshakes, including different flavors and those with healthy additives, milkshakes offer something for a wide range of people. The milkshake has also been changed so that it can fit in the world of chic desserts. “Capitalizing on the drinkable dessert trend, executive chef James Clark introduced the Dulce de Leche Batida (batida is Spanish for milkshake) earlier this summer. The 12-oz. milkshake is made from heavy cream and caramel, and served in a fluted glass dipped in sugar ($10)” (Malone). With the milkshake expanding its horizons in fancy restaurants and high class dining more and more people get to enjoy the sublime taste of the milkshake. As you can tell the price of a milkshake no longer matters to the people of the United States, the only thing that
ice cream belonging to the premium category. Based on our analysis, we have identified two major
A change in consumers’ tastes – the food in this market may become unappealing to consumers as obesity and cardiovascular diseases rise in New Zealand. This would put people off as quick service foods are regarded as unhealthy.
Once the product is accepted the organisation would experience a high growth rate. For example, PAX Yogurt Company which originates on Mount St. Benedict, is a local company which developed seven different flavours of yogurt into the market, they are: almond, guava, passion fruit, pineapple, soursop, strawberry, natural (plain) and vanilla. The primary objective was to meet the customers’ needs with a good quality product at an affordable price in order to return high sales and profitability for the company. It is imperative at this stage, that particular attention should be placed on creating strategies for pricing, place or distribution and promotion so as to establish a market presence and create a suitable demand for the product. Pricing strategies include price skimming and price penetration. It is advisable at this stage to employ the price skimming strategy for example, pricing the product at the highest point possible. Prices can then be lowered when demand starts to