Ice Cream Market Analysis and Strategy

This assignment delves into the Australian ice cream market, examining key trends in consumer preferences, competitive landscape, and successful branding strategies employed by leading brands like Bulla, Peters Ice Cream, and Streets. The analysis also investigates the influence of factors such as health consciousness and sustainability on consumer choices. Based on this research, the assignment proposes a comprehensive marketing strategy for a new ice cream product launch, encompassing target market identification, pricing, distribution, and promotional tactics.

Running head: MARKETING MANAGEMENT AND IMPLEMENTATION
Marketing Management and Implementation
Name of the Student
Name of the University
Author note

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MARKETING MANAGEMENT AND IMPLEMENTATION
Section 1: Introduction
Company Overview
Streets Ice Cream had its foundation laid during the time between WW1 and WW2 by
Edwin Street, with help from his brother and wife. They had no idea that their venture would go
on to become one of the biggest and best known ice cream manufacturer in Australia. The
product started off originally in the back shed of the Streets. Edwin then sold those to the
neighbors, along with some cakes, sweets and lemonade. All these selling increased his
popularity and he soon started using a cart, later moving on to one-horse- power motorbike for
selling those Streets Ice Cream. The venture started to grow and today it is sold all over Australia
and New Zealand, with majority of the profit gained from well-known brands like Paddle Pop,
Blue Ribbon and Magnum (Streetsicecream.com.au 2017).
Image: Logo of Streets Ice Cream
Streets Ice Cream has been the reason for a lot of people’s smiling faces. They have even
supplemented their ice cream products with a developing range of lower-fat, lower-sugar

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MARKETING MANAGEMENT AND IMPLEMENTATION
products. There is also a lighter version range of some of the Streets Ice Cream brands, all the
while maintaining the lusciousness of the products. There is also Magnum Minis for those who
are looking for enjoying their treats in a smaller serving size. Magnum was the first ice cream for
adults that was put on a stick. Today the brand is one of the leading wished ice cream brands in
the world, retailing approximately 1 billion units a year (Unilever Australasia 2017).
Image: Different Brands of Streets Ice Cream
Section 2: Category Analysis
Levels of Competition
The Australian ice cream industry experienced a 4% increase in ice cream consumption
in 2016. There was an increase in sales of smaller portions of ice cream, approximately 1%
increase in volume terms due to the rising health concern consciousness. Australasian Food
Group Pty continued its leading streak in 2016 also with 32% value share due to the multiple
brands across major ice cream categories (Euromonitor.com 2016). Local gourmet product
providers like Harry’s Ice Cream Co has a significant contribution in the industry, with the

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locally made products of unique and interesting flavors. Large ice cream manufacturers like
Peters and Bulla have fast caught up on the increasing taste for premium ice cream. It has been
found from reports that Streets gets tough competition in the Australian market from top brands
like Bulla and Connoisseur (Ausfoodnews.com.au 2014). Close competition also includes Norco.
Golden North and Homer Hudson are two distant competition of Streets and are fast gaining
market.
The Lehmann and Winer level of competition model helps the ice cream manufacturers
understand that it is important for precisely locating and evaluating their competition as each
competitor brings a threat. The competitive derivatives are situated inside a diagram that has
been grounded in accordance with the product under assessment (Lehmann and Winer 2005).
Image: Lehmann and Winer level of competition model
The ice cream industry faces high level of competition (Newlands and Hota 2017). This
is specifically clear in the product form category. There are many replacements in the product
level for customers, extending to the product category and generic competition.
Restaurant
meal
I
Confectionary
Frozen
dessert Dairy
product
Sweet
biscuits
Milk
shakes
Energy
drinks Yoghurt
Movies
Product form competition
Children’s
entertainment
Liquorice
Budget competition
Generic competition
Product category competition

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MARKETING MANAGEMENT AND IMPLEMENTATION
Category Size and Growth
In the consumer packaged goods market, the growing GDP and ageing population in
Australia is generating new dynamics. The scenario has improved and has created a lot of
opportunities for Streets ice cream (Refer to appendix 1). The retail and food service market in
Australia showed the following improvements in 2014:
Country indicator Units Value
Total value of Food market,
2014
US$ millions 55,191.1
Total volume of Food market,
2014
Millions of Kg 7,510.7
Total Food volume growth
2009-2014
CAGR 2.7%
Proportion of Ice Cream as
share of whole food volume,
2014
% 3.3%
Major category within the Ice
Cream market as part of whole
volume, 2014
% Artisanal Ice Cream,47.4 %
Private label penetration in Ice
Cream market, 2014
% 6.4%
Image: Retail overview
Food service overview:
Profit

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Total number of trades in the Profit Sector, 2014: 3,838.7 million
Principal channel in the Profit Sector and trades, 2014: Restaurants, 2,600.7 million
Cost
Total number of trades in the Cost Sector, 2014: 816.0 million
Principal channel in the Cost Sector and trades, 2014: Education, 430.7 million
The Ice Cream market in Australia developed at a CAGR of 5.1% in US$ terms for the
duration of 2009-2014 and is forecasted to deteriorate by -2.5% throughout 2014-2019. Both on-
trade and off-trade ingestion would reduce by -2.5% in value terms during 2014-2019. The
volume ingestion of Ice Cream products is predicted to develop at a CAGR of 1.8% during 2014-
2019 from 412.3 Kg million in 2014 to reach 451.6 Kg million in 2019 (Refer to appendix 2).
Section 3: Competitive Analysis
Product Features Matrix
Streets Peters Harry’s Bulla
Brands Magnum,
Cornetto, Futtare,
Golden Gaytime,
Splice, Calippo,
Paddle Pop, Blue
Ribbon, Vienetta
Barney Banana,
Billa Bong,
Arnott’s, Proud &
Punch, Gelato
Fiasco,
Drumstick,
Connoisseur,
Maxibon, Monaco
Bar, Dixie Cup,
Coffee, Vanilla
Popcorn Crunch,
Salted Caramel
Fudge, Peanut Butter
Fudge, Triple Choc
Brownie, Sticky
Date Pudding
(Harrysicecream.com
2017)
Giant twins,
Barista Bar
Coffee, Chocolate
Daydream, Menz
Fruchocs, Swing,
Wedgee Ice Block
(Bulla.com.au
2017)

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MARKETING MANAGEMENT AND IMPLEMENTATION
Eskimo Pie,
Frosty Fruits, Icy
Pole, Giant
Sandwich, Heart
(Peters Ice Cream
2017)
Price $8 $8 $4 $4.9
Size 900 ml 900 ml - 475 ml 2L
Artificial colors None None None None
Image: Product Features Matrix
The main customers of these products are children and teenagers. They are easily
impressionable and are the maximum section of the population. Irrespective of the geographic
location, people are inclined towards consuming this frozen dessert. People from across a large
variance of income and social class are consumers of ice cream. The most consumed ice cream
are take-home and bulk (Goff and Hartel 2013). The volume intake of Ice Cream was 412.3 Kg
million in 2014, of which Take-home and Bulk Ice Cream accounted for 60.8% of volume sales
trailed by Artisanal Ice Cream with 22.4% share. Artisanal Ice Cream would record the highest
development in volume terms at a CAGR of 1.9% all through 2014-2019 trailed by Take-home
and Bulk Ice Cream at a CAGR of 1.8% in the same time (Refer to appendix 3 and 4). Streets
have immense competition from Peters and Bulla in this section as they have the best and
maximum amount of take-home and bulk options available for the consumers.
Category Average Price/ Kg (AUD) 2014 Average Price/Kg (USD) 2014
Artisanal Ice Cream 16.5 14.9
Impulse Ice Cream Single Serve 15.6 14.0

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Take-home and Bulk Ice Cream 10.6 9.6
Image: Average category level prices (AUD) in Australia’s Ice Cream market, 2014
All private label sectors are attaining share in the Ice Cream market. The private label Ice
Cream products developed at a CAGR of 6.2% during 2011-2014, while the branded Ice Cream
products registered a CAGR of 1.8% throughout the same period. The Impulse Ice Cream –
Single Serve category has recorded the firmest private label development with a CAGR of 7.6%
through 2011-2014, trailed by Take-home and Bulk Ice Cream with a CAGR of 5.9% through
the same time. This point to the increasing request for private label Ice Cream products in the
country because the Australian customers believe private label presents to be urbane enough to
contend with brands (Refer to appendix 5).
Competitive Analysis Matrix
Marketing objective:
 Surge market share from 12% to 16%
 Surge sales volume
Marketing mix:
Price: Streets will be embracing the market penetration pricing strategy for the initial a year of
the presentation of the product. Penetration pricing strategy positively affects here and now
market penetration rate (Spann, Fischer and Tellis 2014). The low pricing will give Streets an
additional favorable position over its rivals prompting increment in the volume of sales.
Product: This product purposes to tap into the interest of the newer generation and have a
product that is custom-made definitely towards them.

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MARKETING MANAGEMENT AND IMPLEMENTATION
Place: A specialty product focused towards the newer populace. It would be situated as a sound
product made with nearby best quality fixings. The product would fill its need without trading
off on taste. The product would likewise oblige those looking for a more advantageous option in
the ice cream parlor classification.
Promotion: A well thoroughly considered and complete promotion and marketing campaign will
have a wide rundown of constructive outcomes for the organization (Mahajan et al. 2016). In
that capacity, it will enable the organization to get to the objective market absolutely, ameliorate
shopper data toward the organization products, and also generate a database for collaborations
with customers and unraveling an assortment of client issues.
SWOT Analysis
The goal of this SWOT analysis is to abridge all the data, comprehend and illuminate
what is the Streets' competitive advantage, what contenders are improving the situation, which
openings the market offers and what threats the brand is presented to.
Strengths - An important competitive advantage of Streets is that its ice creams are sold
under different umbrella brands. The way that Unilever has the responsibility for Streets' picture
speaks to an essential advantage before the contenders. It resembles this in light of the fact that
on one hand Unilever can control and deal with all the TV and computerized substance and PR
occasions; something that a permit contract does not permit.
Weaknesses - Children's product portfolio has low level of distribution in food service
(Cohen and Muñoz 2017). Contenders are more significant in the children section and they have
a more characterized and steady strategy. Streets’ range of products in food service is wide, and
the level of awareness is higher compared to others.

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MARKETING MANAGEMENT AND IMPLEMENTATION
Opportunities - There is a huge opportunity to introduce Street’s ice creams to the other
existing clients all over the world. Other than the distribution potential, the gross sales value
caught by every customer has been expanding quite a long time. At the end of the day, eateries
and bars are spending more cash onon Streets.
Threats - The present emergency is having a solid negative effect in the food service
segment. Eateries are getting less customers and the normal use per customer is lower. In this
situation the pastry is the most influenced classification. Liking with frozen yogurt brands begin
early and is generally kept through life. In the long haul this can be a danger and thusly it is
essential, over the long haul, that Streets is the main brand in fondness and utilization in all
snapshots of utilization. Losing this position may suggest losing the purchaser in the long haul
(Yan et al. 2015).

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Reference List
Ausfoodnews.com.au. (2014). Bulla Australia's most popular ice cream brand, Roy Morgan
Research | Australian Food News. [online] Available at:
http://www.ausfoodnews.com.au/2014/11/05/bulla-australias-most-popular-ice-cream-brand-roy-
morgan-research.html [Accessed 22 Aug. 2017].
Bulla.com.au. (2017). Cream, Ice Cream, Yoghurt, & Cheese in Australia | Bulla Family Dairy.
[online] Available at: http://www.bulla.com.au/#/ [Accessed 22 Aug. 2017].
Cohen, B. and Muñoz, P., 2017. Entering Conscious Consumer Markets: Toward a New
Generation of Sustainability Strategies. California Management Review, 59(4), pp.23-48.
Euromonitor.com. (2016). Ice Cream and Frozen Desserts in Australia. [online] Available at:
http://www.euromonitor.com/ice-cream-and-frozen-desserts-in-australia/report [Accessed 22
Aug. 2017].
Goff, H.D. and Hartel, R.W., 2013. Ice cream. Springer Science & Business Media.
Harrysicecream.com. (2017). Harry's Ice Cream Co. [online] Available at:
http://harrysicecream.com [Accessed 22 Aug. 2017].
Lehmann, D and Winer, R., 2005. Product Management. 4th International edition. New York,
NY; McGraw-Hill.
Mahajan, S., Antarkar, D., Roy, R., Nagare, M., Kalantri, R. and Tiwari, V., 2016. Predictive
Modeling in Campaign Management. algorithms, 5(10).

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Newlands, D. and Hota, M., 2017. Case Study 7: Häagen-Dazs China: The Luxury Icing on the
Cream. In Services Marketing Cases in Emerging Markets (pp. 77-88). Springer International
Publishing.
Peters Ice Cream. (2017). Ice Cream Australia | Peters Ice Cream. [online] Available at:
http://www.peters.com.au [Accessed 22 Aug. 2017].
Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic
pricing for new products. Marketing Science, 34(2), pp.235-249.
Streetsicecream.com.au. (2017). Share Happy. [online] Available at:
http://www.streetsicecream.com.au [Accessed 22 Aug. 2017].
Unilever Australasia. (2017). Streets. [online] Available at:
https://www.unilever.com.au/brands/our-brands/streets.html [Accessed 22 Aug. 2017].
Yan, M.R., Brown, D., Parsons, A., Whalley, G.A., Hamid, N., Kantono, K., Donaldson, B. and
Rush, E., 2015. Branding, ingredients and nutrition information: consumer liking of a healthier
snack. Journal of Food Research, 4(5), p.64.

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Appendix
Appendix 1
Appendix 2

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Appendix 3
Appendix 4