Industry Analysis by Stage in PLC - Essay Example

The market is expected to grow continually for a decade. At 2013, the forecasted market value is $10.7 billion with a 9.4% growth from 2008 and a market volume of 3.8 billion liters with an 8.5% increase since 2008. (Datamonitor, 2008) The condition of the ice cream industry is influenced by several external factors. Social factors such as health issues can affect the buying behavior of consumers. The recent peanut butter recall due to contamination has decreased retail sales on peanut flavored ice cream.

Obesity concerns and health trends has pushed manufacturers to launch new products that address the growing trends. (Peot, 2008) Economic factors such as recession affect the buying behavior of consumers and packaging techniques of producers. According to Berry, consumers budget their purchases during slower economic times and prefer to eat ice cream at home. The supermarket sales of ice cream increased because of this purchasing behavior. (Berry, 2009) Supermarket store chains have benefited an increase in sales of their private labels through this change (Ice Cream Going Private Label, 2009).

Manufacturers, on the other hand, downsize its packaging due to increased raw material costs and energy expenditures. They have decreased the packaging volume in order to maintain, if not lower, the retail price of their products. (Berry, 2009) The US ice cream market is assessed as highly competitive. . The market is dominated by three large companies. Unilever, Nestle and Blue Bell Creameries are the three well known companies. (Datamonitor, 2008)Unilever is a diversified company that engaged in global manufacturing and marketing of consumer goods in food, personal and homecare segments.

The company generates revenues through different business divisions, one of which is ice cream and beverages. Their ice cream brands include Good Humor, Cornetto, Ben & Jerry's and Breyers. (Datamonitor, 2008)Nestle is engaged in the business of manufacturing and marketing branded food and beverages through six business divisions. One division involves milk products, nutrition and ice cream. The ice cream business carry the brands such as Slow Churned Dreyer's Grand Light, Sveltesse stick, Haagen Dazs and Legend Real Dairy.

(Datamonitor, 2008)Blue Bell Creameries is engaged in the production and marketing of ice cream. The company sells its ice cream under the Blue Bell brand and has around 50 different ice cream flavors including Homemade Vanilla, its flagship flavor. (Datamonitor, 2008)Market SegmentsThe ice cream market is fragmented. The segmentation is based on the preference and taste of consumers. The market segment is best categorized below.SEGMENT NAMESEGMENT PROFILEPremium LoversIndulge in premium and super-premium quality ice creams; non-price sensitive; buy ice cream based on taste and high quality ingredients; prefers foodservice and dining out; mostly adults with higher incomesWellness AficionadosOnly eat ice creams that are labeled reduced fat, low-fat, non-fat or light products; weight conscious eaters; mostly women, prefer to buy based on the health benefits of the product; looks for