Carvel China - Case Analysis

3171 Words Feb 10th, 2011 13 Pages
Case Analysis: Carvel Ice Cream – Developing the Beijing Market

Problem
How to increase ice cream cake sales in a counter culture ?

Issues
What consumer to target ?
What products to focus on ?
What prices to charge for those products ?
What points of distribution would best increase cake sales ?
How to support these sales through various print media options ?

Industry/ Market Analysis The Beijing ice cream industry was made up of standard and premium products. The premium products consisted of 2% that was approximately 700 tonnes and rest was standard products manufactured by low cost producers at lower costs. The standard market was made of single serve and juice products. Earlier, local ice cream producers did not try to
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Baskin-Robbins strength in Beijing was hard ice cream followed by the ice cream cakes. Customers could place custom cake order that needed 24- 28-hour notice to be produced. Baskin Robbins estimated annual sales were $845,000 to $1,002,650. Hagen-dazs entered Beijing market in 1998 after establishing two stores in Hong-Kong. Hagen-Dazs only store in Beijing was located in a popular shopping district next to posh international hotel. The store was located very close to Baskin Robbins flagship store. Wang believed Hagen-dazs positioned its store as upscale, full service life style serving westernized yuppies of Beijing. Hagen-dazs products include ice- cream, ice cream bars, fancy deserts and cakes. Most of the cakes were made to fill specific customer order. Hagen-dazs had deep pockets to market its products in Beijing spending 2,000,000 Rmb to promote grand opening of store in Beijing. It had dignitaries and celebrities at the grand opening of the store.

Product Analysis With the introduction of Carvel to China, Steven Wang had to make crucial decisions on how he was going to sell to a counter-culture where cold foods were frowned upon. These decisions would more than likely have much more to do with what product they were selling rather than what price they were selling it at because Carvel already had significantly cheaper products than its competitors. Through consumer