Marketing Principles: Prom Coast Ice-cream Marketing Strategy and Planning

This document discusses the marketing strategy and planning of Prom Coast Ice-cream, a manufacturer of small batch ice cream. It covers brand values, positioning, unique selling propositions, marketing objectives, strategies, product offering, price, place, promotion, physical evidence, people, processes, and more.

MARKETING PRINCIPLES
Part B
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Table of Contents
Introduction................................................................................................................................1
The brand...................................................................................................................................1
Brand values...........................................................................................................................1
Positioning..............................................................................................................................1
Unique selling preposition......................................................................................................2
Marketing objectives..................................................................................................................2
Marketing strategies...................................................................................................................3
Product offering......................................................................................................................3
Price........................................................................................................................................3
Place.......................................................................................................................................4
Promotion...............................................................................................................................4
Physical evidence...................................................................................................................5
People.....................................................................................................................................5
Processes.................................................................................................................................5
Marketing budget.......................................................................................................................6
Schedule for implementing the strategy.....................................................................................6
Evaluation..................................................................................................................................8
Conclusion..................................................................................................................................8
References..................................................................................................................................9

Introduction
The operations and activities of the company have no meaning and direction without
marketing planning. Further, there will be no management procedure pursuit goals and thus,
marketing planning is being regarded as the most vital aspects in the modern marketing. The
main aim of the current study is to discuss the marketing strategy and planning of Prom coast
ice-cream which is developing a new range of products for dairy, non-diary and gluten
intolerant customers (Czinkota and Ronkainen, 2012). Prom coast ice cream is an ice cream
manufacturing industry being located in Toora, Victoria. The business was to grow and desire
to open more outlets in Melbourne. The research report will develop a marketing plan
including marketing objectives, strategies, budget, marketing activities implementation
schedule and evaluation and control. Further, positioning as well as unique selling
propositions will also be discussed effectively in the current report.
The brand
Brand values
A brand is nothing but an intangible asset of the business that supports the firm in
differentiating amid its book value and market value. Brand value is referred to the brand
equity (Ansari and Riasi, 2016). Speaking in relation with the Prom Coast Ice-cream and
Sorbet, it is an award-winning manufacturer of small batch ice cream which is based near
Wilsons Promontory. The brand solely believes in refining the flavours and recopies so as to
grow continuously. The brand is being inspired by the things that all are lucky enough to see
each and every day i.e. the natural wonder of Wilson’s promontory (Butcher Baker & CO,
2018). Further, the brand also offers two varied kinds of benefits to its customers. First, ice-
creams and sorbet being offered by them are of great taste, innovative, dairy, non-diary and
gluten free. Secondly, the brand is also a cool friend and adventure partner for its customers.
Positioning
Positioning is defined as a place where a brand occupies in the intellects of people. It
also reflects the ways the brand is distinct from other competitors in the market. It is quite
important for Prom Coast Ice-cream and Sorbet to decide on the main areas that they will
concentrate so that they can compete in the market effectively. There are many strategies
which can be used by the firm for effectively positioning in the market. However, they
decided to consider more towards the quality of their products (Twomey, 2015). Prom Coast
Ice-cream had a belief that quality positioning strategy will help them in differentiating
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themselves from other players in the same market. They make use of simple egg-free base,
fresh milk and genuine flavours to develop a smooth creamy texture as their attributes of
selling quality products. Considering this, the positioning strategy that will be adopted by the
firm will be high prices for premium ice-creams and low prices with high quality for seasonal
as well as regional ice-cream (Hollensen, 2010).
Unique selling propositions
Speaking in volume about unique selling proposition, it is being referred to a factor
that helps in differentiating a product from other rivalry firms in the market. It can be of
many types such as highest quality, monopoly in the market, lowest costs etc. Thus, it can be
said that USP is one which is not possessed by any other firms in the market (Harrell, 2011).
In the current case, the unique selling proposition of Prom Coast Ice-cream is being honest to
goodness, real flavoured ice-cream, sorbets and vegan-friendly coco-creams. In addition to
this, the firm makes use of simple egg free as their ice-cream base, milk from Gippsland cows
and genuine flavours. The products are gluten free and dairy free which makes the brand
different from other competitors.
Marketing objectives
Marketing objectives are defined as the goals being established by the firm at the time
of promoting their products as well as services to the target market. These objectives should
be realised within a stipulated period of time. In other sense, they can also be referred to
marketing strategies being set for achieving the overall objectives of the firm (Payne, 2012).
There are many kinds of objectives Prom Coach Ice-cream & Sorbet can pursue their
specified product such as increasing the awareness of its products among its target customers,
offering data in regards with the characteristics of the product, decreasing the resistance of
people to purchase the goods etc. In addition to this, while setting marketing objectives, it is
also essential for Prom Coach Ice-cream to consider the SMART approach so as to reap out
better results and effective achievement of the set goals. Some of the important marketing
objectives of the company are being described underneath:
 To increase sales of the company by 20% within one year;
 To increase 50% fan following on social media by the end of third quarter;
 To introduce seasonal flavors in every season so that the product offering increases by
20% at the end of the year;
 To increase customer reach by incrementing advertising budget by 15% during peak
season;
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 To achieve profit growth of around 15% every year.
Marketing strategies
Marketing strategy is being referred to as the overall plan that helps in reaching the
desired people and turning them to the valuable customers. Further, it also includes the value
proposition of the company, information about the market to be targeted, marketing messages
and other high-level elements (Ohn and Martin, 2014). Prom Coast Ice-cream and Sorbet can
achieve sustainable competitive advantage in the market through effective marketing
strategies in place. In addition to this, the main goal of the firm i.e. to expand their outlets in
Melbourne will be fulfilled with the employment of these strategies. Explanation of these
strategies is as follows:
Product offering
Product is anything that can be provided to the marketplace in order to capture
attention, contend the needs and desires of the market and acquire customers. There are three
layers of product i.e. core benefit, actual product and finally, augmented product (Kotler and
Armstrong, 2013).
 Core benefit – It is the principal need of the people which is satisfied by purchasing
the product (Wang, 2014). The main benefit of customers buying the ice-cream of
Prom Coast Ice-cream and Sorbet is satisfaction as well as indulgence. Moreover, the
products also offer luxurious ice-cream experiences to the customers.
 Actual product – The actual product is the main features and design of the product.
There are many features of the product but very few are factual or core benefits to the
customers. Talking in relation with the Prom Coast Ice-cream and Sorbet, the actual
product of the company is honest to goodness, real flavored ice-creams, sorbets and
vegan-friendly coco-creams (Callon, 2016).
 Augmented product – It is being defined as the non-physical parts of the products. It
generally encompasses customer service and warranty of the product. Further, the
augmented product is considered as the most vital way for tailoring the products of
the firm towards meeting the demands of the customers. In case of Prom Coast Ice-
cream and Sorbet Company, the augmented product is the 12 classic flavors which are
catering to the needs of dairy, non-dairy and gluten intolerant people. Further, the
base of the ice-cream is egg free and the ice-cream of the firm is being made from 100
percent additive coconut milk (Gegez and Sims, 2014).
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Price
Talking in relation to the pricing, it is being regarded to as one of the most vital
elements of the marketing strategy of any firm. Each and every firm is required to select
strategic choices at the time of pricing its products and services in order to effectively attain
the objectives of the business. Furthermore, price is the only component that helps in
generating revenue while other elements of the marketing mix notably represent costs. It is
very essential for the Prom Coast Ice-cream to take into account the dynamic environment of
the market. Fluctuation in the economy can place the firm in a crucial position. All the other
activities of Prom Coast Ice-cream such as the distribution of the product, advertisement and
promotion are supported by price element of the marketing mix (Webster, 2015). The
company will consider cost-based pricing strategy i.e., cost + pricing. Moreover, different
prices for different ice-creams will be charged. For instance, high prices for premium ice-
creams and low prices with high quality for seasonal as well as regional ice-cream.
Place
The strategy for moving products from one place to another i.e., manufacture to the
intended user is known as place strategy in the marketing mix. In other sense, place is all
about the ways product is being bought and the place from it is bought. In addition to this,
this movement of the products and services can be performed by a combination of
intermediaries like wholesalers and retailers. However, nowadays a new method of
distributing product has been evolved these days is the Internet which itself a marketplace.
Prom Coast Ice-cream will adopt direct distribution method, wherein there will no
intermediaries involved and products will be directly sold to the consumers or ultimate users
(Harrell, 2011). The company will open its new outlets in Gippsland, the Mornington
Peninsula and in Melbourne. They will open a new scoop shop in foster and will sell their
products directly to the end users.
Promotion
Promotion is being referred to as a marketing communication which is used to
advertise and market the products and services of the company. Seeking help from the
promotional strategy, the target customers get awareness of the products being sold by the
firm. Each and every business is required to convince their customers by telling them the use,
benefits and quality of their products (Doyle, 2012). Thus, promotion helps in letting people
know that their needs can be satisfied by the products of the company. Prom Coast Ice-cream
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and Sorbet will also adopt different promotional strategies to market and advertise their new
shops and outlets. Some of the vital methods that the firm will adopt are as follows:
 Social media advertising – Prom Coast Ice-cream and Sorbet widely utilizes
Facebook as well as Instagram for promoting their exclusive ice-creams and Sorbet.
The company already has 1000 followers and growing presence on Instagram. The
social media is a key way for the firm in order to maintain relations with the present
customers and searching for new clients. Advertisement in Facebook is the best
method for the firm to target its definite group (Harrell, 2011).
 Sales promotion – This is being regarded as one of the best methods for encouraging a
surge in the sales. Prom Coast Ice-cream and Sorbet distributes free samples and
demonstration of their ice-creams in order to let people know about their products. In
addition to this, seasonal discounts will be offered to have more footfalls in the store.
 Advertising – Prom Coast Ice-cream and Sorbet has designed a good website to attract
people towards the brand. They have designed the website in a user friendly, easy to
navigate and logical lay out which brings customers towards the brand (Fifield, 2011).
Other than this, they also make use of Google my business and Google ad words to
appear near the top of the search. This will surely enhance the visibility, trust as well
as credibility of the company. Moreover, referrals are also used to influence its
existing customers to bring new customers.
Physical evidence
It is considered as an essential element of the marketing mix of service brands. For the
purpose of creating a better customer experience, tangible elements are delivered with the
services. For example, Prom Coast Ice-cream and Sorbet has a good seating arrangement,
ambient lighting and nice music along with good taste and flavours (Terpstra, Foley and
Sarathy, 2011).
People
People are also an important component of the service marketing mix. The people
define a company. In the case of Prom Coast Ice-cream, the makers of the flavours and
employees within the store and their behaviour will define the firm. It is the people who can
make or break the business. Ice-creams and sorbets are made differently and presented in a
luxurious manner by the employees. It helps in attracting people from various parts of the
town (Blythe and Megicks, 2010).
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Processes
It defines the manner through which services are being delivered to the customers.
Prom Coast Ice-cream always thrives on their quick services. The company also takes care of
the quality of the product meanwhile delivering its products optimally. The Ice-creams being
sold by the firm are little different from usual as its base is made without using eggs. Their
sorbets and ice-creams are suitable for dairy, vegan, non-diary and gluten intolerant people.
The products and flavours are made from the traditional simple style which offers hand
churned ice-creams to their customers. Thus, the processes being adopted in Prom Coast Ice-
cream is simple and traditional (Baines, 2012).
Marketing budget
Throwing light in relation to the marketing budget, it is nothing but a marketing plan
related to the costs. In other words, it is an estimation of the total costs that will be involved
in promoting the products as well as services. It is a very crucial part of the marketing plan
and encompasses costs such as advertising, employing workers, outlets costs and many other
expenses related to the marketing (Taghian, 2010). The marketing budget of Prom Coast Ice-
cream is as follows:
Campaign type Project cost Remarks
Local and national marketing
Newspaper ads $10,000 Cost of placing ad in a 4” X 10” space of a
national Newspaper (The Australian, 2019)
Social media marketing
Facebook $2,000 Cost of content development, ad placement
and advertising fee (Aston Social, 2019)Instagram $5,000
Website $5,000
Sales promotion
Free samples and
demonstration
$2,000
Digital marketing
Google ad words $5,000 Cost pay per click with a fixed budget
(Google Ads, 2019)
Sub-total $29,000
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Schedule for implementing the strategy
Marketing strategies, as well as marketing objectives, are essential elements of the
marketing planning process. However without having an action plan, nothing can take place
easily. Concerning this, a marketing activity schedule is a tool being used by the firms for
executing the marketing strategies as well as activities effectively. This implementation
schedule will be used by Prom Coast Ice-cream and Sorbet in order to list down and timeline
the activities that help in bringing down a specified marketing strategy (Hamdi, Vazifehdust
and Gheitasi, 2014). Furthermore, it will also help the firm in keeping a track of marketing
activities which is being emphasized on attaining a particular definite objective. For instance,
the key marketing objective of Prom Coast ice-cream and sorbet is to augment the sales of the
company by 20 percent within one year. Thus, this objective will have different inter-related
marketing strategies that too will have various tactical approaches (Toledo and et.al, 2014).
The strategy implementation schedule of Prom Coast Ice-cream is as follows:
Activities Responsibilities
Time schedule
1-2 3-4 5-6 7-8 9-10 11-12 2 year
Introducing flavours
to the target
customers
Existing production team
will be responsible for
introducing different
flavours
Newspaper
advertisement
Marketing executive will
purchase the newspaper
advertisement for first 4
months
Free sample of ice-
creams and sorbets
Sales team and employees
will distribute free samples
to the customers and
demonstrate about the
product
Promotion of the
products range
Marketing executive will be
accountable for promoting
the products of the company
for the first six months
Social media manager will
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Social media
advertising
market the products and
outlets on various platforms
such as Facebook, Twitter,
Instagram
Digital marketing Social media manager will
make use of Google my
business as well as Google
ad words to promote and
market the products
Evaluation
This is being regarded as the section which helps in measuring the effectiveness of the
marketing plan against the performance standards (Pride, et. al., 2012). In addition to this, it
also offers information in relation to the action that Prom Coast Ice-cream needs to undertake
if the marketing objectives of the firm are not met effectively. Various marketing metrics will
be used by the company for measuring the performance of promotion and marketing
activities and some of them are as follows:
 Return on marketing investment (ROMI) – Talking in relation to return on marketing
investment, it is a metric which is being utilized for measuring the effectiveness of the
campaigns of marketing. Further, it also helps in examining results in regards to the
particular marketing objective (Kotler, 2011). It is the sub-category of ROI i.e., return
on investment, as the costs are incurred here on marketing (Payne, 2012). It is being
calculated by applying the formula i.e. “Incremental revenue attributable to marketing
multiplied by contribution margin (%) subtract marketing spending divided by
marketing spending in dollars”.
 Google analytics – This tool is considered as one of the most valuable treasures for
the small business like Prom Coast ice-cream and sorbet. Further, it is very easy to
use and versatile in nature. This tool can be utilized with any type of website. In
addition to this, it is an online analytics program that helps in tracking information of
the clients and enables the company to better identify the working of their marketing
strategies and activities (Mcdaniel, 2010).
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Conclusion
Marketing planning is a very significant factor for the companies to consider. With
this, firms can achieve success and sustainability in the market. Prom Coast Ice-cream and
Sorbet should make their planning process stronger and effective so as to lead the market.
Furthermore, it is essential to comprehend the market and the preferences of the customers
for the purpose of formulating an operative marketing plan.
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