Valley Ice Cream Ltd - Report Example

Marketing Tool Report Table of Contents Introduction 3 PESTEL Analysis 4 SWOT Analysis 7 Recommendations 10 Conclusion 11 References 13 Introduction Valley Ice Cream Ltd is the popular ice cream business, which has been established in 2008 in Lancashire’s Ribble Valley in England. This business has various types of ice cream products such as vanilla, chocolate and strawberry among others. The limited customers of Valley ice cream are hotels, restaurants, caterers and retailers. This business trusts on few customers of Business 2 Business (B2B) and Business 2 Consumer (B2C) markets. Current promotional strategies of the company involve traditional method such as advertising and magazine among others. The ice creams of the company are unique in terms of tasty and favours. The company is famous for delicious ice cream. Presently, the company is identified to have only 4% of the market share in the local market. Local and direct competitors of the company include Wallings Farm, Mrs. Dowsons and Holden’s Ice Cream among others. The trade percentage of the company in relation to sales is estimated to be 25%, in hotels and caterers are 40% and 25% from retailers. The remaining 10% of sales is circulated to the B2C customers. In this regard, the company has been identified to be effective in performance to a certain extent due to inappropriate marketing objectives and limited number of customers (Hope Valley, 2015). This essay intends to have an analysis of the market and competiveness of Valley Ice Cream Ltd. in relation to PESTLE and SWOT analysis. In this regard, the company is required to develop marketing objectives with the assistance of which the company will be able to conduct operations in an effective and sustainable manner. PESTEL Analysis PESTEL analysis is identified as a strategic planning, which provides suitable structure for examining the factors that are associated with macro-environment of an economy. Based on the analysis of such factors, Valley Ice Cream Ltd. will have a better understanding about the market and other conditions, so that operations can be conducted in a competitive manner. Several factors that are involved in macro-environment affect the decisions of the managers of the company. In this regard, the PESTLE analysis has been conducted hereunder. Political The government of the UK has been identified to have develop policies based on which a stable environment has been maintained in the UK economy. In addition, the political system of the economy is stable due to minimum military invasion. The government has been formulating as well as implementing policies based on which business operations can be conducted with better sustainable and growth prospects (Cheshire, 2012). In this regard, Valley Ice Cream Ltd. conducting operations in the market segment of the UK will be able to perform operations with better profitability and sustainability (Kolios & Read, 2013; Gillespie, 2007). Economic After the financial crisis in the year 2008, the government of the UK with the implementation of effective measures has been able to recover the economic condition to a large extent. Economic factors include different factors such as interest rate, taxation rate and exchange rate. The government with the management of these factors has been able to stabilise as well as improve the Gross Domestic Product (GDP) growth rate. The UK economy is also ascertained to be one of the largest economies in terms of business and service sector. Additionally, the country is an important location for international trade and investment (Cheshire, 2012). Contextually, the stable and developing economic condition of the UK has been an important consideration based on which the company is bale to conduct its operations with explaining as well as investment opportunity (Kolios & Read, 2013; Gillespie, 2007). Social Social factor refers to as the changes of social trends that can influence the demand of the products of an organization and the willingness of individuals to work, which is most important consideration for the future development of the organisations. In the UK, people representing different backgrounds are residing in the country and the literacy rate is high (Cheshire, 2012). In this context, Valley Ice Cream Ltd. has the opportunity of having competent workforce in an economical manner (Kolios & Read, 2013; Gillespie, 2007). Technology In the UK, technological advancement has been an important adoption for ensuring innovation. In addition, the government provides tax levy for Research and Development (R&D) industry, so that technological development can be adopted as well as implemented in different sectors. The use of new as well as advanced technologies has been a vital consideration based on which operations can be conducted in an innovated and competitive way (Cheshire, 2012). In this regard, Valley Ice Cream Ltd. with the implementation of advanced technology is able to minimize cost and effort, and on the other hand, enhance quality of the product as well as invent new method or idea for introducing new products. Through advanced technology, the company can improve the quality of the ice cream according to the demand of the customers (Kolios & Read, 2013; Gillespie, 2007). Environmental Changes of weather as well as climate are considered as the environmental factors. The UK government is responsible for formulating and implementing policies as well as regulations on the issues of environmental factor. The UK government is also recognised to formulate environmental policies based on which the corporate sector is required to conduct operations in an environment conscious manner (Cheshire, 2012). In this context, Valley Ice Cream Ltd. is needed to perform operations in adherence with the environmental or Corporate Social Responsibility (CSR) policies for better business sustainability (Kolios & Read, 2013; Gillespie, 2007). Legal The legal legislations as well as regulations are complicated in the UK. The legal system of the country is based on three laws that include Northern Ireland law, English law and Scottish law. In this context, the governance of the country on the basis of these three laws has led .to certain complexities as well as complications. In this respect, certain legal changes in the UK affect the behaviour of an organization (Cheshire, 2012). Due to legal complications in the UK, Valley Ice Cream Ltd. may face complexities in conducting operations effectively. However, strong legal regulations in the country have been a beneficiary factor for the company to conduct operations with better legal considerations (Kolios & Read, 2013; Gillespie, 2007). (UK Government, n.d.) In this regard, based on the PESTLE analysis, Valley Ice Cream Ltd. has been identified to have better opportunities of conducting operations in the UK sustainably. In addition, overall condition of the economy has been recognized to be effective and supportive for the growth as well as development of the company in the market segments of the UK. The company is facilitated with the opportunity of performing profitably by providing quality as well as innovative products. SWOT Analysis SWOT analysis is an effective procedure based on which companies are able to have a better understanding about competitive advantages that are availed for performing operations sustainably. In this regard, Valley Ice Cream Ltd. with the assistance of SWOT analysis is able to understand strengths, weaknesses, opportunities and threats of the company. In addition, SWOT analysis is also important for making effective decisions, so that operations can be conducted in a competitive way. Accordingly, a SWOT analysis of the company has been performed hereunder. Strengths- S 1. Customer base company 2. Quality products are provided 3. Availability of variety of products 4. Possesses advanced technology Weaknesses- W 1. Limited number of customers in B2B and B2C market 2. The sales of ice cream of this company in B2B and B2C market is not good 3. Marketing strategies are ineffective 4. Market position is not strong Opportunities- O 1. Expand the brand in the North-West markets of England. 2. Focused on the quality of product 3. Increase the availability of products 4. Enhanced working environment 5. Improve innovation process to achieve the sustainable growth Threats- T 1. Strong competitors in local market such as Wallings Farm and Mrs. Dowson Among others 2. Increased number of customers in B2B and B2C markets 3. Increased legal complexities The above-mentioned strengths are beneficial for Valley Ice Cream Ltd., because these strengths are helpful for achieving sustainable and competitive advantage. These strengths also helps for holding a strong position in the market based on the quality of product and loyalty in customer service (Scotburn, 2008). There are some weaknesses of Valley Ice Cream Ltd, which this company has to improve to make the company profitable. The company has to build a healthy relationship with the customers for developing a better customer base. In this regard, mitigation of these weaknesses would facilitate the company to enhance sale, which in turn would augment the profitability of the company in the long run (United Nations, 2015; CDER, 2003). Valley Ice Cream Ltd has also some opportunities to expand the business in other locations for achieving competitive advantage. The major threat of the company is local competitors who can create problem in the success of this company. Therefore, this company should make a new strategy for the development of the company and compete with the competitors (Manchester, 2015; Moretti & Jones, 2012). Marketing Objectives The three major marketing objective of Valley Ice Cream Ltd essential to increase the sales in 2015-2016 for the future growth of the company are provided hereunder. Increase distribution channel and possess competent staff members Develop unique and innovative products Adopting effective marketing strategies The company should increase channel of distribution and number of customers to expand the business in other locations for increasing sale of products (Saylor Org, 2014). In addition, the company should use advanced technology and innovation process to introduce new products in the market according to the demand of the consumer, so that business operations are conducted with better sustainability as well as profitability (OECD, 2007). The marketing planning of the company should be conducted in an innovative manner, so that the company is able to compete with the competitors and develop unique products, which are different from the products offered to the competitors (Gilbert, n.d.). Therefore, these three types of marketing objectives can be benefited for the future growth of the company and is helpful for increasing the sale of the products in several markets such as B2B and B2C. These three marketing objectives are beneficial for increasing the sale of the products in the year 2015 and 2016. These objectives are based on the marketing strategies, which are important for the future growth of the company. It is important for the company to increase the channel of distribution and customer base for improving sale figure. The success of the company is based on the satisfaction level of the customers. In this respect, the company accomplishing the needs of the customers are able to enhance the sale of the products. In recent years, the use of technology is essential for introducing and developing a unique product in order to develop a better market position. Uses of advanced technology reduce cost and time of developing a new product (Dale Farm, 2011). Recommendations To introduce a new product in the market, the company needed to identify the needs of the market such as the type of products important in the market to expand the business and make a strong position in the market. The company should plan for the improvement of the company by interacting with staff members, so that decisions are made in a strategic manner making process based on which future success of the company can be attained effectively. Marketing strategy is one of the important strategies, which is important for better market expansion and business. In this respect, the company with better market expansion is able to enhance sale and economic growth of the company. It can be also recommended that this company have to focus on taste and availability of the products in the market to satisfy the needs of the customers. The company should recognize the needs of the market in an effective way to know what type of products required in the market that can be different from the products of the competitors. The study of the needs of the market is also an essential aspect for the future success of the company. The company should use leadership strategy to compete with competitors in the local market, so that staff members are needed to be managed for better coordination of operations (Dalefarm, 2011; Srivastava & Sakunke, 2011). Conclusion From the above analysis and discussion, it can be comprehended that Valley Ice Cream Ltd is one of popular ice cream companies in the UK. This company has limited number of customers in B2B and B2C market and the sale of the products in these two markets is not good for the development of the company. In addition, based on the PESTLE analysis, it has been identified that the company has different opportunities in terms of technological advancement and stable political conditions among others based on which business operations of the company can be conducted sustainably. On the basis of SWOT analysis, it has been recognised that the company possesses different advantages for conducting operations competitively in the UK market segments. It has been recommended that this company should increase the number of customers and distribution channels to improve the selling of the product and accomplish competitive advantage. The company should also use advanced technologies and innovation to enhance the quality of the products and produce unique products to holds a strong position in the market. References Cheshire, 2012. Fire and Resource Service Analysis of External Drivers. PESTEL Analysis, pp. 3-73. CDER, 2003. U.S. Department of Health and Human Services Food and Drug Administration. Guidance for Industry, pp. 1-21. Dalefarm, 2011. Creating a successful future. United Dairy Farmers, pp. 1-40. Gillespie, 2007. PESTEL Analysis of the Macro-Environment. Oxford University, pp. 1-5. Gilbert, J. R., No Date. Competition and Innovation. Chapter 26, pp. 1-29. Hope Valley, 2015. Hope Valley Ice Cream. Categories. [Online] Available at: http://www.hope-valley.co.uk/ [Accessed January 8, 2015]. Kolios, A. & Read, G., 2013. A Political, Economic, Social, Technology, Legal and Environmental (PESTLE) Approach for Risk Identification of the Tidal Industry in the United Kingdom. Cranfield University, pp. 5024-5045. Manchester, 2015. Manchester Plan, Manchester Airport, pp. 1-84. Moretti, L. A. & Jones, S. C., 2012. Advanced Emissions Control Technologies for Coal-Fired Power Plants. Technical Paper, 1-10. OECD, 2007. Rationale for an Innovation Strategy. Innovation and Growth, pp. 3-29. Saylor Org, 2014. Using Marketing Channel to Create Value for Customers. Chapter 8, pp.1-44. Srivastava, K. R. & Sakunke, T. S., 2011. Impact of Future Trends on Marketing Strategy. Journal of Marketing and Management, Vol. 1, No. 1, pp. 10-15. Scotburn, 2008. Ways to Scoop up More Ice Cream Sales and Profits. The Diary Best, pp. 1-8. United Nations, 2015. Pollution from Food Processing Factories and Environmental Protection. Industrial Development Organization, pp. 1-11. UK Government, No Date. PESTLE Analysis. Improvement Network, pp. 1-2. Read More