The Possibilities of Expanding the Business into New Overseas Markets
As international marketing consultant of Mackie’s of Scotland, the ice cream maker, it is my duty to consider the possibilities of expanding the business into new overseas markets, successfully. The Scottish ice cream market will be researched thoroughly. The UK target market of
Mackie’s will be analysed. Finally a suitable country will be chosen to market the product to. The countries that will be selected from will be Saudi Arabia, Germany or Ireland.
The UK ice cream market is estimated to be worth £1.25 billion.
Mackie’s of Scotland have been making ice cream in Aberdeenshire since the 1960’s, although they have been farming since before the turn of
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Organic Strawberry is available in only 500ml tubs and is packaged with red orange and black colours. Organic ice cream costs roughly £2.99 for a 1 litre tub. Other flavours are cheaper at about
£2.40 for a litre tub.
Mackie’s would want to expand internationally for a number of reasons.
The UK market is relatively congested with a number of different companies competing for the highest share of the market. Wall’s ice cream is the branded leader in every segment in the market. They have been producing ice cream for 38 years longer than Mackie’s, and therefore have been able to firmly establish themselves as the UK’s favourite ice cream company, as well as in other developed and developing countries. Wall’s has a share of 31% of the UK ice cream market. Hagen Dazs controls 19% of the market. Ben and Jerry’s have
15% of the market. Mackie’s, as previously mentioned controls a respectable 11% of the market. Mars Ice Cream has 7% of the market.
Tonitto has 4% of the market and other ice cream manufacturers make up
13 % of the market. Mackie’s have to look to foreign markets that have not been as clinically tapped as the UK. Countries where the ice cream market has not been fully realised, are the same countries that budding ice cream companies like Mackie’s can expose, exploit and profiteer in. Reasons to expand into foreign markets would include the rapid boom in technology which means that communication over long distances is no longer a
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