Marketing : Perrys Ice Cream - Business Plan Example

Marketing Plan: Perry’s Ice Cream Contents Contents 2 Situation Analysis 3 Internal Environment 3 External Environment 5 SWOT Analysis 7 Marketing Objectives 7 Marketing Strategies 8 Target Markets 8 Positioning the Product 9 Product Strategies 9 Pricing Strategies 10 Promotion Strategies 10 Supply Chain Strategies 10 Measurement & Control Strategies 10 Table 10 Works Cited 13 Name of the student Name of the professor Course Number: Date of submission: Situation Analysis H. Morton Perry established the Perry’s Ice Cream in the year 1918 with the purpose of bringing up a new range of homemade ice creams. It has now secured the second position among the largest ice cream manufacturing plants in the New York State. For the creation of a fresh batch of ice creams, it blends the fresh milk and cream with exquisite ingredients (Source-“About us”). Internal Environment Mission Statement The strategies and planning are formulated keeping in mind the mission that the company carries. Perry’s Ice Cream aims to fulfill the needs of the young generations by bringing out the essence of old rustic flavor that are missing in today’s products, without affecting its freshness and quality (Source-“ About us”). Organizational Structure This is a family business. It is operated now by the fourth generation of the Perry family. Robert Denning is the President and CEO; he investigates and implements different developments programmes for long term business goals and strategies. Gayle Perry Denning is the director of sustainability. Gayle has taken the responsibility of evaluating, managing, developing and communicating the techniques of company’s sustainability. Brian Perry, Executive Vice President and Chairman, is experienced in company heritage, operations and industry relations. He works as an intermediary between government representatives and industry and works on issues related to the company (Source- “About us”). Corporate Culture Perry’s Ice Cream is a family owned business. Thus its internal environment supports innovation, individual creativity and risk bearing strategies without destroying the original flavors. “About us” reveals that the company has not diverted from the founder’s recipe and it even serves its community by supporting local producers and also through partnerships and sponsorships. Current Products The company’s forte lies in its original flavors with fresh ingredients. It has now started utilizing upgraded technology in production of ice creams. Since appearance matters a lot for the sale of any product, the round pint container was first implemented by Perry’s Ice Cream (Source-“About us”). Then it was modified by adding a red logo by Sealright, a packaging company. Currently, it offers wide range of products ranging from ice creams, frozen yoghurt, escapes, frozen yoghurts, sherbets and sorbets, novelties in 130 different flavors. Color and textures have always been the priority of the ice creams. Skimmed low fat milk is used for keeping in mind the demands of the health conscious customers. Even milk-free products are also available. Emulsifiers are added precautious to enhance the smoothness and creaminess of the ice creams. Food safety is its priority and it maintains SQF level 3. Along with safety, they control allergen rigorously. It annually manufactures over 500 different products crossing over 12 million gallons of ice creams. Since, children are attracted more towards ice creams; hence, they are made available in schools and near children’s parks, also through ice cream stands, independent stores. Market The consumer base of Perry’s ice creams consists of children and young customers, who are also health conscious. Statistics reveals that around 70 percent of American consumers are trying to lead their life in a healthy way. However, the percentage of those working to achieve healthy lifestyle is very less (Turnbull Peter and Valla 236). Distribution The line of distribution consists of ice cream stands, schools and independent stores. It also gives same importance to online ordering. In ice cream stands they provide wide collection of items under one roof. It collaborates with schools to sell their nutritious and delicious ice creams (Source- “About us”). According to USDA’s Food and Nutrition Service for Nutrition Standards in the National School Lunch and School Breakfast Programs, Perry’s Ice Cream satisfies the final rule by offering 6 ice cream novelties (Mangold, Glynn and Faulds 573). Hence, it acquired an A plus remark. They also supply through independent stores. The distribution fleet of the company covers over 120 units (trailers, trucks, tractors). Its main distributors are, Nestlé, Ben & Jerry’s, Häagen-Dazs and other national brands. It supplies to over 30 countries which is the evidence of its growing business. External Environment Paul (2012) emphasizes that external environment is as important as internal environment. Competitive Environment Perry’s Ice Cream experiences a lot of pressure from market competitions. The direct competitors are those companies that also sell different flavored ice creams and sorbets that include the famous Baskin and Robbins, Blue Bell Creameries, Hershey’s, etc. other small manufacturers, online ice cream outlets (Fifield 29). The indirect competitors include, cookery shows and cookbooks that provide ice cream recipes, other healthy options like frozen fruit yoghurt and chilled health drinks also act as their substitutes. Economics Environment Just after the wave of great depression, the company fully started developing. In 1970, it outgrew its facility in Akron, New York. It structured a new storage freezer in a newly acquired land of 8.5 acre in the village of Akron and built a proper distribution facility. In 1982, it developed its manufacturing capacity to 6 million gallons per year which was 3 times larger than the original plant. This reflected that the newly constructed Perry’s Ice Cream was ready to serve a large mass. Long term manufacturing equipments were installed along with a new 20,000 sq foot, $3.5 million distribution centre (Source- “About us”). Technological Environment Since the food industry is not much dependent on technological advancement, hence, its influence is less. It extensively uses internet for its online outlets (Ryan 27). It has also implemented scientific techniques to enhance its quality. It uses highly upgraded methodology to check the level of allergy components and investigates vigilantly that the ice creams do not lose their nutrients level. However, Perry’s still uses old fashioned processes as it believes to revive the old tastes of the original recipe and give the customer the flavor of a home cooked meal. Political and Legal Environment According to Cross, Belich and Rudelius (2014), political and legal environment is an important aspect of a company. Since Perry’s ice creams are advertised as filled with nutritional elements, FDA must approve all its products. There should be labeling on top of each container which must contain the nutritional information and the ingredients. This information must also be approved by FDA. It is also labeled as being low in fat. However, there are no such regulations regarding its labeling in the present scenario. Since it trades it products outside, it has to follow the guidelines and regulatory policies of the foreign government (Morgan, Vorhies and Mason 2009). Socio Cultural Environment Perry’s ice cream conducts market research to analyze the customer environment. This showed that the growing consciousness among the public towards healthy lifestyles have increased its consumer demand. As a result of this, a number of health clubs, spas and resorts that offer healthy holiday have started demanding healthy ice creams that have the essence of homemade meals (Etimur and Balli 40). Even travelers have demanded that the hotels provide healthy menus along with fresh ice creams. The Perry’s is concerned with environmental degradation. Hence, they focus on educating the employees towards the basic of sustainability and adopting the policies of solid waste reductions and natural resource management. SWOT Analysis Through the rigorous analysis of its external and internal environment, SWOT helps to deliver a summary of company’s strengths, weaknesses, opportunities and threats (Morgan, N, Vorhies and Mason 2009). Strengths The company claims to re-define the original flavor with the blend of old techniques with fresh ingredients. The unique features of the company are its community services and application of eco-friendly methods of production (Cronin Jr, et al. 2011). Weaknesses The company’s growing capacity is not properly accompanied by growing staff. It has the shortage of skilled employees. They are not fully equipped to compete in the market. Using old techniques do not increase its production rate and it fails to keep pace with the increasing demand. It also lacks proper brand and promotional development strategies (Source- “About us”). Opportunities The desire for healthy, low fat ice creams among the teenagers has provided the opportunity for the company to expand its business. It has also created a platform for the company to open additional product lines which are fat free. It is also attracting customers’ attention by its sustainability features and services to the community (Source-“About Us”). Threats The continuation of slow economic growth can adversely affect its sales (Cronin, Joseph, Smith, Gleim, Ramirez and Martinez 158). Also, the other big and renowned ice cream companies pose a threat. Perry’s ice cream is not equipped enough to compete in the global market. The growing publicity of other health drinks can also affect its demand. Marketing Objectives There are some marketing objectives set up to enhance its long term success. This includes creating awareness of its products by at least 15% among the targeted customers, to increase gross sales globally by 55% within next 3 years, to bring up new product lines of low fat flavoured yoghurt and chilled health drinks, to apply modern techniques to match up with the growing demand (Source- “About us”). Marketing Strategies Target Markets Market approach is one of the key components of a marketing strategy (Turnbull and Valla 236). Consumer Markets The company aims to target its already existing consumer market. The consumer target market for Perry’s ice cream has been elaborately analyzed by the company’s market research team (Lee, 573). They have observed the following points: Demographics Age: 5- 50, Household Income: $3000 and above, Mainly located in the urban areas, near schools and parks or college towns. Psychographics Nutrition conscious, willing to lead a healthy life style, Want a taste breaker from the modern flavors available, Busy people and growing kids, Those who go for vacations. Media Habits Customers in the targeted market are addicted to internet and televisions. So, they are most likely to avail the news from these sources. Since the customers are generally the kids, so they prefer cartoon channels. The teenagers spend most of their time in various social media such as Face book, Twitter, etc, especially at night. Organizational Markets There are three categories of reseller markets that have been targeted by Perry’s ice cream are, schools, ice cream stands and independent stores. To enhance its supply, it will also target the colleges and universities, movie halls, shopping malls, resorts, airport lounge and corporate offices (Chatterji and Fabrizio 1427). Since the targeted customers also include college-goers and teenagers, marketing in the colleges, universities, movie halls and shopping malls will prove successful. Relaxing customers and travelers of the hotels and resorts also demand healthy ice creams. Even airport lounges can be useful in incrementing its supply rate where the travelers can relax after an exhausting journey (Source- “About us”). Positioning the Product Perry’s ice cream tries to position its products as the first choice of the health conscious customers who prefer the old taste of the original Perry’s ice cream. Many superior brands are available in the market but Perry’s products have the unique taste of their freshly prepared creams which are made with the old technique. They have actually taken their motto very seriously and provide all the good things in one container. Product Strategies To execute its sale objectives, it needs to launch new products and use upgraded technology for increasing its supply. 1) Perry’s flavored yoghurt in 5 different tastes. 2) Perry’s Chilled health drinks in exiting flavors. Packaging will remain same with its signature cans. However, upgraded technology will be used (Source: “About us”). Pricing Strategies The pricing strategy will remain same for both the existing and new products. Increasing the prices of the new items may confuse customers (Source: “About us”) and also if the new products fail to gain consumers appreciation, then the company may incur loss. Promotion Strategies Earlier mode of promotion was print media such as newspaper ads, posters and radio. However, now promotion is done through web pages, television ads, ads on social networking sites (Damien 27). Magazines are also used for marketing strategies. For additional promotional strategies, it plans to use sponsorships and sampling. By sponsoring several sustainability programmes in the towns, it can not only provide visibility for the items but can also reflect their effort towards a greener planet. Using sampling technique, it will provide the chance to the customers to taste their new items and promote awareness (Ferrel and Hartline 255). Supply Chain Strategies As mentioned earlier, the company plans to distribute its products in college campuses, movie halls, shopping malls, hotels and airport lounges. In colleges, it will provide free refrigerated display units (Source- “About us’). Measurement & Control Strategies Trend analysis and targeted market research will ensure the long run success of the marketing strategies of the company and also allow firms to be flexible for future adjustments (Koh, Anthony and Wong 172). Table Action Items to Achieve Marketing Objective of the Supply Chain (Source- “About us”) Objective: Expand distribution Venues Action Items Beginning Date Ending Date Remarks 1. Identification of hotels, resorts, corporate offices where Perry’s ice cream can be sold June 1 August 1 Motive of this strategy is to maximize sales. Since, its summer time and travelers are expected to visit US, the demand may rise. Products will be in stock from January 1. 2. Identification of 20 colleges and universities May 2 June 1 Information about the college canteens is available on their websites. 3. Make initial contact with large malls and hotels September 10 November 15 4. Make initial contact with larger individuals (non- chain) facilities September 15 November 15 5.Make initial contact with the airport authorities January 1 March 6 Agents will be assigned to airports and are supposed to make an initial contact. 6. Follow up initial contacts with the potential resellers and attain upcoming 6 months contracts. July 1 Ongoing Since follow up travel cannot be pre planned, an approximate amount of $15,000 has been allotted. (Source- “About us”) Works Cited Ryan, Damien. Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. Croydon: Kogan Page Publishers, 2014. Print. Turnbull, Peter, W. and Jean-Paul Valla. Strategies for international industrial marketing. London: Routledge Publishers, 2013. Print. Fifield, Paul. Marketing Strategy. London: Routledge Publishers, 2012. Print. Cronin Jr., J. Joseph, Jeffery S. Smith, Mark R. Gleim, Edward Ramirez and Jennifer Dawn Martinez. “Green Marketing Strategies: an Examination of stakeholders and the Opportunities they present”. Journal of the Academy of Marketing Science 39.1 (2011): 158-174. Print. Chatterji, Aaron K. and Kira R. Fabrizio. “Using Users: When does External Knowledge Enhance Corporate Product Innovation?”. Strategic Management Journal 35.10 (2014): 1427: 1445. Print. Ferrel, O.C. and Michael Hartline. Marketing Strategy, Text and Cases. Connecticut: Cengage Learning (2012). Print. Cross, James C., Thomas J. Belich and William Rudelius. “How Marketing Managers Use Market Segmentation: An Exploratory Study”. Developments in Marketing Science: Proceedings of the Academy of Marketing Science 20.9 (2014): 531-536. Print. Etimur, Burcak and Gokcen Coskuner- Balli. “Navigating the Institutional Logics of Markets: Implications for Strategic Brand Managmenent”. Journal of Marketing 79.2 (2015): 40-61. Print. Koh, Anthony C. And John K. Wong. The Impact of International Marketing Research on Export Marketing Strategy: An Empirical Investigation. Boston: Springer (2014). Print. Morgan, Neil A., Douglas W. Vorhies and Charlotte H. Mason. “Market Orientation, Marketing Capabilities and Firm Performance”. Strategic Management Journal 30.8 (2009): 909-920. Print. Mangold, W. Glynn and David J. Faulds. “Social Media: the New Hybrid Element of the Promotion Mix”. Business Horizons 52.4 (2009): 357-365. Print. Lee, Kaman. “Opportunities for Green Marketing: Young Consumers”. Marketing Intelligence and Planning 26.6 (2008): 573-586. Print. “About us”. Perry’s Ice Cream. Perry’s Ice Cream, October 2014. Web. 21 May, 2015. Read More