Case Study : South Korean Home Brand Ice Cream Market

978 Words Oct 16th, 2015 4 Pages
South Korean is facing a mature market condition with limited growth potential due to its aging population. The country has the lowest birth rates in the world. Therefore, the industries that target on young population such as: ice cream, baby food and milk products… are losing their market (Nieburg 2013). To make the market grow, the manufacturers have to revive the market through innovations through creating additional demand for value-add-on products. This will create a win-win situation for both market players and consumers. However, in reality, to make an innovation requires a lot of capital for investing. Therefore, the existing players in Korea are reluctant to invest in this high-risk market, except some big companies. Therefore, Peters can find an opportunity to enter into this market by introducing the new innovative products to the consumers.
Thanks to the early mover advantages and customer loyalty, domestic players dominate the ice cream market in South Korea. The biggest name of South Korean home-brand ice cream is Lotte Confectionery Co, with an overall value share of 30%. It has 3 sub-brands: Seoleim, World Cone and Weezzle with variety type of ice cream for catering such as: bar, cone, cup, pencil, and bucket ice creams. The company focuses on premium ice cream and dessert (Lotte 2015). Lotte has just introduced wafer ice cream at the beginning of 2015 (Euromonitor 2015). The second leader of this industry is Binggrae Co with an overall 27% of the retail…

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