mkt 500 market segmention and positioning
Market Segmentation and Product Positioning
Kourtney Turner
Dr. Harrychand Kalicharan
Marketing Management
October 24, 2010
Identify the marketing segment for the product and explain why this segment was selected.
According to Advertising Age (September, 2009), premium ice cream and frozen yogurt products are losing market share to mid-priced and other frozen dessert products. Information Resources reported that frozen ice products comprised a third of the $2.4 billion ice cream category for the year ending May 21, 2007, generating $717.7 million, up 9.3% from the previous year.
Based on this information, it is anticipated that the frozen dessert market can be divided into two customer
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These weaknesses include but are not limited too: lower price sno-cones and icees that are located at Gas stations and different grocery stores. Other weaknesses include brand visibility, limited amount of high quality syrup, and also the struggle with taking care of everything with low labor overhead.
Opportunities: To ensure many customers return, Colder than Ice Shave Ice Parlor will produce and sell shave ice with 20 different flavored syrups. Soft drinks and ice cream will also be some refreshing treats available for purchase to consumers who may not want a shaved ice but just would like a cold treat. Customers of all income brackets will be able to enjoy shave ice, and will range in age from children to adults.
Threats: Stores such as Walmart and Winn Dixie are a big threat to my product shave ice. Walmart has everything you may want or need when you’re shopping from food to electronic items although they don’t sell shave ice they do sell similar cheap sno-cones. Customers that are in a hurry may get everything thing they want or need in one store. So competition with sno-cones at stores such as Walmart and Winn dixie would be a great threat to the product.
Describe the market position for your product and service.
The shave ice business will be new to Prichard. Competitors in this type of business primarily sell sno-cones and do not focus on the shave ice market. One major competitor is the "Snow Shack" located on State Street. Snow Shack
In Ice-Fili’s case, they used multiple suppliers for the same raw materials and had a steady stream of offers from new suppliers. Equipment manufacturers had more bargaining power; however, as more domestic producers begin manufacturing that equipment, their bargaining power erodes. Bargaining Power of Buyers is moderate. Their buyers are resellers as well as consumers. Switching costs for buyers are low, resellers don’t have any particular brand loyalty, and consumers can purchase the same style of ice cream (such as Lakomka) from multiple different companies. That being said, a sizeable portion of the market prefers domestically produced ice cream that does not contain preservatives. Another portion of the market is willing to pay much more than the average price of ice cream for what they view as a premium product and experience. Threat of New Entrants is also moderate to low. While there are new companies joining the market, fixed costs are high, including the need to import equipment for production. Many of the companies that have entered the market are companies who already had cold storage facilities that were underutilized. As this excess capacity phases out, the number of new
The biggest competitor is Win Dixie because their product is almost the same high qualities and they both have baggers to put their customers' groceries and if the customer want they can wheel their carts to their cars for them without giving them any tips. According to Food & Lifestyle, Consumer Goods Publix will continue to dominate competitors in 2015.
My current product is a variation of ice cream flavours, it is sold in store and can be also taken home if the consumers want it to be. There are many different flavours that can come in a tub, cone, or a bowl.
But even more of a staple than that is Sebastian Joe's which is hands down, easily, by a mile, and without a doubt, the world's greatest ice cream parlour
Ice-Fili’s ice cream are mainly sold through kiosks and minimarkets (80%). However Nestle also own his distribution channel.
An interior project called Gelatoria is being developed. To make this successful, it is important to become familiar with the industry not just by knowing the components and ingredients of product but also through familiarity with other factors correlated with the success and survivability in the market. The typical gelato shops in Italy are characterized by its unique atmosphere imitating the European lifestyle. Its homemade frozen desserts are the center of attraction not only for adults but for all consumers of all ages. Gelato is indeed popular in Italy as it is enjoyed by all kinds of consumers (D’amico, Nevstrueva, Guan, Gon, Annini, and Yang 8). This paper aims to provide a discussion of the cultural, economical and social factors that affect the industry of gelato, ice cream, yogurt and other frozen desserts. These factors will provide a deeper understanding why certain products become successful in specific regions and how culturally diverse products could be introduced to other nations.
According to ACNielsen Scantrack data, “Blue Bell brand reported a 60 percent market share in Texas cities, 70 percent statewide, 45 percent in Oklahoma and 55 percent in Louisiana. Private label came in second with 18% share.” Blue Bell is clearly out doing their competitors with their quality ice cream product and with such a small area in which they conduct business. CEO of Blue Bell Kruse, “I would have to say that the private label market is out biggest competitor today, Blue Bell will keep coming out with the best ice cream it can make, price it fairly, promote it and give the consumers a good value.” With the closer of Blue Bell and their listeria problem the company is force to recall all its product and they just gave the competitions a chance to step in and there
Furthermore, one of the weaknesses is the prize of a drink. Some customers think that the prize is quite high and it does not worth the money for a cup of tea even if Chatime is the best tea house in the world. There are many others competitors and stores that are selling the similar products and this will causes them to be hard to compete and to compare and determine the pricing and promotion strategies.
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.
Market segmentation is usually regarded as one of the main elements of marketing, with benefit segmentation commonly referred to as the most meaningful form of segmentation. Even though the importance of segmentation is broadly accepted, limited research, do exist about cosmetic medical products (Mohr, Sengupta, & Slater 2010, 79). There are very few real examples of segmentation studies available. This article has focused on Johnson and Johnson products marketing strategy globally. The spread of global culture is normally facilitated by the rise of global capitalism, the proliferation of transitional corporations, homogenization of global consumption, and widespread aspiration for material possessions. International market researchers have discussed the breadth of convergence of cultural values across countries.
According to Market Line a leading business information company, in 2007, the companies with the largest shares in the ice cream business was Unilever, Nestle and General Mills. The breakdown is as follows:
Goals- Dippin’ Dots want to be able to expand where they can sell their product. Since retail locations can only offer the product at 10 to 20° below zero, special storage and serving freezers are required, as well as specially designed cryogenic transport containers in order to move the product. This as well as other factors have limited the distribution of Dippin’ Dots to only serve the away from home segment of the ice cream market, which accounts for $13.9 billion. If they can expand where they sell their product, they can increase sales and gain a large portion of the market.
In the late 20th century, the ice cream industry market share was classified into frozen novelties and packaged ice cream, and packaged ice cream could be divided into super premium, premium and lower-price products. Dreyer’s Grand Ice cream Company mainly focused on the premium products.
Market volume for the confectionery industry is flat due to the changing trend in consumption driven by the changing age in distribution of the population. Growth is only driven by price increase at 10%. Distribution / availability and visibility are seen as important elements in influencing the sale due to the nature of its products, impulse items. In addition to this, the bargaining power of the retail trade has been shifting away from the suppliers (i.e. manufacturers like Adams) and is in favor of the
Convenience is driving the frozen market sales globally as consumers are looking for healthy and less time-consuming meals (Seth and Randall, 2011). Private label is performing extremely