Bulla Ice Cream Situation Analysis - Research Paper Example

Ice cream is not just considered a delectable treat but real food. Consumers view ice cream as a healthy diet with a great source of energy. Australians are among the largest consumers per capital of ice cream in the world.

The first commercial ice cream was produced in Australia in 1907 (Unilever, 2010). Streets ice cream marked the beginning of the ice-cream industry in Australia in 1920 (Unilever, 2011). This was subsequently taken over by Unilever and is now one of the biggest and best-known manufacturers with brands such as Magnum, Paddle Pop, and Blue Ribbon. This was the first ice cream available on sticks and today Magnum sells about 1 billion units per yearю

Market Statistics
Positive change in both value and volume in the Ice-cream sales (Appendix A) in Australia suggests that the economic downturn ash not impacted the sales of this luxury food item. Sale has increased by about 9% in value 2 years from 2007 and about 5% in volume. However, there have been significant increases in the sales of tubs (23.2% by volume) while the sales of multipacks and desserts have declined. Again, while Nestle and Unilever have seen declining sales, Bulla’s sales in two years have increased almost one hundred percent.  All other brands such as Weis and Sara Lee have seen sales decline over this period. Amongst the popular brands, those of Nestle – Peters Original and Peters Light & Creamy have steadily declined. Brands such as Bulla Real Dairy, Bulla Ribbon, and Bulla Creamy Classic have almost doubled in two years. Bulla Ribbon has registered the highest growth (more than 100%).

Political
Australia has a very low risk of political stability and the country ranks third in the world for political stability (NSW, 2011). This makes it a safe investment location. Australia is a constitutional democracy based on the federal division of powers.

Economical
Australia offers an environment that encourages freedom of speech and freedom from internal control (MIEPA, n.d.). Business investment and foreign entrepreneurship are encouraged in all sectors. Despite the economic downturn ice cream continues to be an affordable indulgence for Australians leading to the sustained growth of 3% in 2010 (Euromonitor International, 2010). The ice-cream industry shows an increase at an annualized rate of 2.3% to $485 million in the five years through 2010-11 (Ibisworld, 2011).

Socio-cultural – health and wellness products are in high demand and shape the performance of indulgence and impulsive purchases such as increase-creams (Euromonitor International, 2010). This is the reason that despite constrained consumer spending sales remained robust. Impulse ice cream is identified as a quintessential activity in Australia and a key aspect of Australian life. However, as the consumers have become health-conscious innovative product lines and adapting to changing consumer trends has become important.

Technological
Australia has the latest technology in ice-cream production and research is an ongoing process in Australia.

Competition
Unilever continues to dominate the entire Asia-Pacific market in ice-creams having 8.6% of the total market share (Appendix B). Nestle and Bulla Dairy are the other two main contenders in this sectorю

Bulla Ice Cream analysis
Bulla Dairy is an Australian-owned family business that constantly introduces new products based on technological innovation. Started in 1910, the organization sells its products all over Australia and also exports throughout Asia and the Pacific region. It has a diverse range of products categorized into Retail, Foodservice, Route, and Export. Yogurt, ice-creams, cheese, and cream are its specialties.

Marketing Mix
Bulla products are available in tubs, multipacks, and also as desserts. Apart from ice-creams they also make yogurts and other dairy products all made from fresh milk and Colac. Their products cater to every segment and are well-positioned in the market. They also have light creamy ice creams with low sugar content to cater to health-conscious consumers. At the retailers, this brand is given importance and preference in displays and the distribution is done from a vast array of outlets.

Packaging
The packaging of Bulla ice creams is very attractive but what is amazing is that they are very economically developed to minimize the carbon footprint left by the brand.