Marketing Objectives for MEBI’s
1.
2.
3.
4.
To sale 200,000 litres of ice cream in first season (5 months).
To achieve 5% markets share in 5 years.
Create awareness of the product of 70% in the first year.
To have product available in all the major retailers in the first year of launch.
Market background for (UK)
On average, each person in the UK eats 9 liters of ice cream every year. The people of Scotland and
Northern Ireland eat more ice cream on average than those in England and Wales.
The ice cream market has been experiencing sales in recent years(0). As the markets increase people’s
attentions are turning towards healthy eating which creates a big gap for potential market of healthy
indulgent products. Ice cream, which is the ultimate indulgence for many people, more companies are
focusing on providing healthier, lower fat and lighter ice cream for health-conscious consumers to avoid
obesity or diabetes. Nowadays, more and more companies are focusing on using high quality and
premium ingredients and making up by upper-scale packaging to attract middle and upper class. As a
result the self-cost of healthier ice cream would be higher and premium ice cream is inevitable. Besides
the market of ice cream raw material such as milk, sugar would also affect the ice cream market.
United Kingdom Market Analysis using PEST (macro analysis).
Market analysis would be done by the use of PEST. PEST helps in analysing macro
environmental factors of United Kingdom (UK) which helps in creating business strategy for the
company. PEST consists of Political, Economic, Social and Technological factors.
PEST
Description
Political


Due to government policies prices are rising in all the sectors (VAT increased from 12 to 20%)
Stable government encouraging manufacture sector as well as supporting developing of
sustainable food production.
Economical



UK economy currently faces inflation of 4.4% (Allen,2011).
Unemployment in UK is 8%. UK currently stands in fourth position after US.
The annual growth rate for 2011 is 0.70% which has increased from 2008 which was -5%.
Social



Average population age of UK is 39.7 as per 2010.
Average income has increased by 2.1% in 2010
Due to education more people are having lifestyle change which is inkling them towards health
awareness and hence they buy more healthy products.
Improved transportation and technology means less reliance on local or seasonal produce.

Technological




UK being a first world country is technologically more advanced with more research and
development facilities.
Being technologically sound less man power is needed with more output.
Technology advancement helps in customer satisfaction.
UK produces 8% of the worlds scientific papers which is 12% only second to US.
Table No-1 PEST
Competitors Market Analysis for MEBI’s
Competitors Marketing Mix:Using the 4P’s of marketing mix:- The main company UNILEVER has different products in the ice cream
market with differentiated product offerings the various brands that are under UNILEVER are 1)HaagenDaz’s, 2) Carte D’Or, 3) Ben & Jerry’s, 4) Walls.
Haagen-Daz’s
Product
Price
Place
Carte D’Or
Ben & Jerry’s
Haagen-Daz’s
Carte D’Or light 1) Ben & Jerry’s
Cookie Dough ice vanilla 1ltr
cookie
dough,
cream
500ml
2.phish,
3.
(Premium
Chocolate
fudge
product).
brownie, 4. caramel
chew chew (for
children)
all
products
are
available in 500ml
(Premium product)
£4.15
£3.45
Available in all
the small & large
retailers
like
ASDA,
Morrison’s,
TESCO,
Sainsbury’s. They
have sales of the
product all over
UK.
Have sales all They target mainly
over UK. In all the major retailers.
the major retail
outlets.
do
Promotion They
promotions
monthly with the
help of large
retailers
and
provide 50% off
on their normal
price.
With the help of
retailers they are
able to sell it at
offers like buy 1
get 1 free which
may be monthly
or after 5 weeks.
Walls
Tesco
1) Walls cream of
Cornish(1ltr), 2.soft
scoop vanilla (2ltr),
3.viennetta
vanilla/mint
(650ml).
1.TESCO
caramella (1ltr), 2.
Chocolationo
(900ml),
3.
Vanellitta (1ltr), 4.
Cherrylicious
(900ml)
1. £4.45, 2. £2.22, 3. 1. £2.8, 2. £1.92, 3. 1. £1.65, 2. £1.99,
£2.22, 4. £2.22
£1.00
3.1.65, 4. £2.20
Being a Unilever
brand its available
all over UK and in
all major retail
outlets.
Have 1905 outlets
all over UK with
its own supply
chain. Considerate
mostly
major
cities. Has almost
reached to every
place in UK.
They mostly have The offer ranges
offer for 10 days from to 30 to 50%
and slash the rates off on the actual
to half price.
price
varying
according to the
place.
Mostly sell the
products
cheap
than
its
competitors
by
providing
offers
like buy 1 get 1
free.
Table No-2 Competitors Analysis for Ice cream market.
Marketing mix for MEBI’s using the 4 P’s (micro analysis):4P’s
Description
Product
Healthy product with saffron flavour, 500ml, liked by people of all ages, Good quality, Suitable for
people routing for good quality.
Price
Price being highly competitive which is lower than most of the competitors except retailers who sell
their product at lower price (TESCO). Customers asking for lower price high quality which our product
has with new flavour and taste is advantageous for us.
Place
Would target mostly Yorkshire covering all the major retailers as well as small retailers to make the
product available easily to the local public, and providing convenience.
Promotion
Would mostly do promotions 3 weekly which most of the competitors don’t do, and would also be
supported by the advertisement giving product information and availability.
Table No-3 Marketing Mix for MEBI’s
Promotion Mix: a successful promotion mix uses a balance of its five tools in a planned and structured way.
Type
Advertising
Sales Promotion
Description
Time & Date
T.V, radio & news papers (Sun Times), cinema halls.
Six months from the launch
date (March to September).
Discount offers like Buy 1 get 1 Free, half price.
22nd March to 19th April
(Half price & Buy 1 get 1
Free).
MEBI’s promotions help in simulating buying.
Personnel
selling
Sales persons giving free samples outside Malls, supermarkets.
From 1st March for 3 weeks
(Free sample).
Direct
marketing
Opening of website. (During sales promotion we will be noting down
personal email ID while giving free samples, for notifying about new
product launches). Will provide all the information of all the products
available showcasing the brand name which help in increasing brand
image.
Notification from 15th
March till 30th September.
E-advertisement
We will do advertisement on the sites of all the major retailers, if
needed we will do advertisement on e.g. Yahoo.
In the next season i.e. 2013
Table No-4 Promotion Mix
SWOT AnalysisStrength
1) The company has strong finances and can back new projects.
2) Low price
3) Long product shelf life.
4) Good promotion schemes.
Weakness
1) The firm is New in market with no experience
of the industry.
2) Financial Situation as compared to
competitors.
3) Don’t have retail shops.
4) Large bargaining power of suppliers/retailers.
5) High inventory cost.
Opportunity
1) Building brand image and having a strong brand with the
help of advertisement.
2) Maintaining better quality product- with the help of research
and development.
3) Younger audience searching for convenience products.
4) New product development- will help in differentiation.
5)UK market- will cover all the four sectors of UK
6) Brand awareness- with the help of sales promotions.
7) Fewer competitors 3 to 4 around our price range.
8) Increase in sale of our product by future forecasted sales.
9) Gap in the market for low fat ice cream.
10) Health conscious customers looking for good quality
products.
Table No-5 Current situation analysis of MEBI’s.
Threats
1) Rising labour cost
2) Established players are superior to MEBI’s in
finance, production and operations.
3) Strongest brand in the market Unilever.
4) Customers loyalty towards old brands
5) Want more sales promotion with cheap
product offerings & better quality which will
affect our return on income.
6) Cheaper products available in market
7) Retailers own labels are strong.
8) Frequent switching of some segments of
customers.
Marketing StrategyAfter the analysing all the company strengths and weakness opportunities and threats of MEBI’s we can
form a strategy with the help of PORTER’s Generic strategies model.
PORTER’s Generic Strategies: - Helps in analysing Competitive strategy for MEBI’s
Differentiation
Broad
Scope
Narrow
Cost
Differentiation
Cost
Leader
Differentiation
Focus
Cost
Focuser
By using the porters generic strategy MEBI’s opt for narrow market by focusing only on the Yorkshire
market by providing products at lower cost. This strategy will help MEBI’s to gain more customer
loyalty, being more competitive in the market, can focus on the targeted customers more by offering
better quality and increase in sales. This strategy will also help in gaining more market share and form a
base for future expansion.
Once the company grows with increased knowledge of the market and more customer loyalty then in the
second phase MEBI’s can enter broader scope.
STP Analysis:- Segmenting, Targeting & Positioning.
Segmenting
Age,gender,behaviour
Targeting
Positioning
Highest consumption of ice cream is
by the young & middle aged
individuals who are also health
concious
We want our product to be postioned
as value for money , good quality with
good recognising our good brand
image
IMPLEMENTATIONS –
Product Ice cream is one of the most loved desserts by everyone, but there’s less availability of healthy ice
creams in market due to the acceptability issues with texture, smoothness, creaminess, etc. The earlier
testing results showed the product is liked by the entire panellist keeping all in mind. We have developed
a healthy ice cream ‘Low Fat Saffron Ice cream with Rose water’ which will be available in an
attractive 500ml pack. This will be suitable for all the age groups who are seeking health conscious open
to try different brand products.
Our product quality is high like that of a premium ice cream with great taste high quality and use
of all natural ingredients. The fat content of our ice cream is 4.45%, energy- 336.8KJ/100ml. This product
is a convenience product which would be easily available.
Product life cycle-
Our product on the product life cycle graph is where the star is, so based on this our organisations
marketing policies will be adjusted.
Place –
As said earlier MEBI’s will be first targeting the Yorkshire market because on an average, each person in
the UK eats 9 litres of ice cream every year. Whereas the population of Yorkshire & The Humber is over
5.3 millions therefore to achieve the objective of MEBI’s i.e. selling 200,000 ltrs of ice cream in first
season is possible. And the next year it will enter the southern UK and the following year will cover the
whole UK. So in order to cover all these areas we will need to have an efficient and effective distribution
channel which will enable more sales and get a warm reception from the retailers. We will be using the
following type of distribution channel.
MBEI's
Distributor
Retailer
Consumer
This channel will be used to reach the small and large retail shops, hotels, corner shops, & restaurants and
large retailers like TESCO, ASDA, Morrison’s, Sainsbury’s. This channel help do mass distribution; it
will also help in reaching the consumers who don’t have easy access to major retailers and thus we can
make our product available to them, will also help us to reach almost all the corners of every area.
Price –
Price of our product will be less i.e. £1.60 for 500ml as compared to other products available in the
market. The price can be kept low as we manufacture our product in Yorkshire and initially we are
targeting only Yorkshire area therefore other expenses like transportation would be less. Being lower
Priced we can gain more sales and create more brand loyalty of our product in new market. Price has a
psychological impact on the consumer and being lower priced than the competitors product would help in
being more competitive which help in the strategy of having more market share in the narrow market.
Lower price strategy will encourage more customers to try the product and on tasting the product they
will discover the high quality of our product and so this will create a value for money impression about
the product in the minds of the consumer. After finding out that the product has great new flavour and
also has many health benefits and still it’s a cheap product consumers will genuinely start buying our
product, and also help in word-of-mouth publicity.
Promotion –
Being a new product promotion is very important for brand awareness and providing information about
the product features and the availability. The promotion will mainly be classified into two types mainly
advertisement and sales promotion. These two types of promotion will help us improve awareness about
our product and brand and will also help increase sales.
1. Sales Promotion:

For the Customers: The promotions will take place at mainly crowded places E.g. outside Malls
and superstores by our salesmen standing outside the places and providing free taste samples and
also give them leaflets with product information. More promotions like buy one get one free, half
price that will be available to attract and inform more consumers about the new product.
For the Retailers when they buy in bulk they will be given large discount so as to encourage
them to keep more of MEBI’s products.
2. Advertisement –


For the Customers: Advertisements on T.V (During E.P.L. matches), Radio (During Evenings
106 Capital FM), Newspapers (Sun Times), in cinema halls during summer vacations to target
younger crowd.
For the Retailers: The advertisement offerings would also be supported by placing banners and
poster outside the superstores as well as at the point of sales
The placement of the advertisement needs to be perfect so as to fulfil our first priority to get the
attention of our target audience who are 15to 60 year old.
Controls –
Objectives




To sale 200,000 litres of
ice cream in the first
season.
To
achieve
5%
markets share in first 5
years.
Create awareness of
the product of 70% in
the first year.
To
have
product
available in all the
major retailers in the
first year of launch.
Controls

After 3months after the launch of the product the sales would be checked according
to the demand in market for our product.

At the end of every year it will be checked that how much market share MEBI’s
has achieved by the time and according to that the promotions will be increased.

70% product awareness in the first year in Yorkshire region---- market research
will be carried out after first 3 months to check the awareness level in the
Yorkshire region.
To have our product in 90% of the retail stores----- after first 5 months this
objective has to be checked and judged and according decisions would be taken.

Contingency plan: - If the above plan fails to stand up to the expectations of the company then MEBI’s
will directly sell the product to the big retailers and to the vans selling ice cream in their own label brands.
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918
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http://www.parliament.uk/briefing-papers/SN02792
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ml
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t_&_Accounts_2010
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13. http://www.ice-cream.org/facts-types-and-usage-of-ice-cream-4.htm