Opportunity Analysis and Development in the Ice Cream Industry | [Name of the Student] | [Name of the University]

This is a summary of an academic paper titled "Opportunity Analysis and Development" written by a student from an unnamed university. The paper discusses the Australian business environment, which is ranked 21 out of 190 competitive economies due to its political stability and transparent regulatory system. The study focuses on an ice cream parlor named Marcopolo, which aims to introduce diet ice cream in its store in the Australian market. The paper analyzes the market trend and different opportunities in the Australian market using various market analysis tools. The ice cream industry in Australia is growing at a rate of 2.5% per year, with revenue reaching US$845m. The paper suggests that introducing diet ice cream, which uses minimal amounts of fat and sugar, will help the company attract a large number of customers.

Running head: OPPORTUNITY ANALYSIS AND DEVELOPMENT
Opportunity Analysis and Development
Name of the student
Name of the university
Author note

1OPPORTUNITY ANALYSIS AND DEVELOPMENT
Table of contents
Introduction......................................................................................................................................2
Problem and need analysis...............................................................................................................2
Customer analysis............................................................................................................................4
Market analysis................................................................................................................................5
Internal capabilities..........................................................................................................................7
Commercial viabilities.....................................................................................................................9
Conclusion.......................................................................................................................................9
Reference list and bibliography.....................................................................................................10

2OPPORTUNITY ANALYSIS AND DEVELOPMENT
Introduction
Due to political stability and the transparent regulatory system in Australia, the
Australian business environment has ranked 21 out of 190 competitive economics (Granato et al.
2018). Due to increasing competitive rate in the Australian business environment, it has become
necessary for bringing uniqueness in the market for sustaining in the market. On the other hand,
needs and demands of the customer are rapidly changing, which can be considered as the
important key driver for increasing competitiveness in the Australian market. The study will shed
light on the company namely Marcopolo, which is an Ice cream parlor and going to develop its
business in the Australian market. In order to make its entry memorable for the customers, it
aims to introduce the diet ice cream in its store. Using different market analysis tools, changing
market trend and different opportunities in the Australian market have been analyzed.
Problem and need analysis
Analyzing the Australian ice cream business, it can be said that in every year the industry
is growing 2.5% (Statista.com 2019). In the ice cream segment, the revenue has reached
US$845m (Statista.com 2019). Due to availability of large numbers of competitors in the
Australian market, being a new entrepreneur, it becomes essential for bringing uniqueness in the
market so that the products can be easily appreciated by the customers (Haskelberg et al. 2016).
Analyzing the business environment in this country, it has been identified that Australia is being
considered as one of the popular peaceful countries in the globe. On the other hand, analyzing its
economic growth it can be said that Australian economy is growing in the fastest manner. In this
situation, it has become easier for the entrepreneur to develop its business. It cannot be denied
that due to increasing opportunities in the market competitive ness in the ice cream producing
industry has also been increased in Australia. In order to bring uniqueness in the products,

3OPPORTUNITY ANALYSIS AND DEVELOPMENT
different flavored as well as healthy ice creams in the market (Schaltegger, Burritt and Petersen
2017). Ice cream is being made by high amount of sugar, variety of milk, gelatin, fat, egg and
flavoring. Diet ice-cream will be the new concept in the market, where the minimal amount of fat
and sugar will be used by the company. In that case, it will be easier for the company to grab the
attention of large numbers of customers.
Examining the current food habits of the people, it can be said that the consumption
pattern of the people has been changed. It is true that in the 21st century, people have started
gathering the information about energy value of food and calories (Caldera, Desha and Dawes
2018). In order to maintain healthy living standard people have started counting the numbers of
calories they eat daily. In that case, it can be assumed that if Marcopolo will be able to properly
introduce the diet ice cream in its stores, it will be highly appreciated by the people. Being a new
organization in the market the company will focus on producing the products in lower ranges so
that large numbers of people will be able to experience the products. Analyzing the involved cost
for manufacturing the product, it can be assumed that per pc of diet ice cream will be available in
the market in US$12. Not only the diet ice cream, but also normal ice creams will also be
produced by the company. Target market of Marcopolo will be developed depending on three
segments such as demographic segment, psychographic segment and geographic segment. In the
demographic segment, the company will target the all age group of people. Depending on its
price it can be said that lower middle class, middle class and upper class people will be targeted
by Marcopolo. Depending on the geographic segment, urban areas will be chosen so that large
numbers of customers can be attracted by the company. In case of psychographic segment, it can
be said that the diet conscious people will be targeted by the company. The study has already
mentioned that people have become highly conscious about their diet therefore, in this situation

4OPPORTUNITY ANALYSIS AND DEVELOPMENT
the need for introducing diet ice-cream in the Australian market, can be considered as the
emerging need, which can be beneficial for fulfilling the future need.
Customer analysis
Australia is being considered as one of the popular ice cream consuming countries in all
over the world. In the year 2016, Australia got popularity in the major for whopping 9.4 liters of
ice cream by per person (Ibisworld.com.au 2019). The country is known for its aversion to
cross-country skiing and subarctic climate. Due to increasing population in this country, the
company is dealing with several challenges in the market so that the consumption rate of per
person has reached 9.8 liters (Carrillo-Higueras, Prajogo and Smith 2018). Analyzing the market
demand towards the healthier and premium ice cream have boosted the industry growth.
Understanding the ice cream market trend for last five years, it has been identified that market
revenue has increased 1.6% in between the year 2018 to 2019 (Ibisworld.com.au 2019). Due to
increasing industry demand, in particularly serve and scoop segment. In the last five years
analysis, it has been identified that gourmet gelato products and premium ice cream have brought
huge success in the market. Therefore, depending on the demand characteristics of the Australian
ice cream industry it can be assumed that in the coming years, the growth will increase 3%
(Smudgeeats.com 2019). Due to its access in the niece market, it can be assumed that it can bring
huge profit in the Australian economy. However, it is also true that taste of the diet ice-cream
will be very different from the normal flavored one. The diet ice cream will be introduced by
Marcopolo in only vanilla flavor. Therefore, lack of variety in flavor and different taste of the
products, increase the chances of market rejection. On the other hand, store ambience as well as
store layout play an influential role for driving the purchasing decision of the customers (Soosay
et al. 2016). Therefore, not only the product quality, but also the architecture of the store needs to

5OPPORTUNITY ANALYSIS AND DEVELOPMENT
be innovative so that the company will be able to motivate the employees for purchasing the
products. In order to satisfy the consumption habits of the customers, not only lab testing will be
done but also compensation will be introduced in the opening day.
Market analysis
It is very important for the organizations to understand the actual position of its
competitors in the market so that the company will be able to understand its actual position in the
market (Findlay and Thompson 2017). Due to increasing opportunities in the market, large
numbers of ice cream producing organizations have developed there business for entertaining the
Australian people. Jock’s Ice cream & sorbets, Aqua S and Gelato Messina Darlinghurst are
the major competitors of Marcopolo in the Australian market. Using the Porter’s five force
analysis, the competitors’ analysis of Marcopolo will be done.
Situation Analysis
Bargaining power of
the customers
Analyzing the current market demands and increasing consumption
rate of the Australian people, large n umbers of organizations have
developed its business in the Australian market (Yeoh and Popovič
2016). Due to availability of online delivery service facilities, before
purchasing the products customer get various options in the market
that increases the bargaining power of the customers. In this situation
the company needs to focus on introducing unique marketing strategy
for grabbing their attention.
Bargaining power
suppliers
With increasing numbers of organizations in the market, availability
of raw material has become the major concern in this industry (Liu,
Wang and Wilkinson 2016). Although the numbers of organizations in

6OPPORTUNITY ANALYSIS AND DEVELOPMENT
the market have increased in the fastest manner, but the rate of
suppliers is comparatively low. In this situation, it can be said that the
bargaining power of the suppliers is high. In order to deal with the
situation Marcopolo needs to focus on developing strong relationship
with the suppliers so that high discount can be gained.
Threats from new
entrants
Due to high consumption rate and rapid economic opportunities, many
of the entrepreneurs can be able to develop their business in
Australian market (Haskelberg et al. 2016). In this situation, it can be
said that threats from the new entrants are quite high. In this case, it is
important for Marcopolo to maintain the uniqueness in the market.
Threats from
substitute products
In case of ice cream business, threats of substitute products are high.
Different types of deserts such as frozen yogurt and juices are also
popular in the Australian market.
Existing rivalry Analyzing the current competitive business environment, it has been
identified that the organizations namely Jock’s Ice cream & sorbets,
Aqua S and Gelato Messina Darlinghurst are already ruling the
Australian ice cream industry.
(Created by author)
Product life cycle:

7OPPORTUNITY ANALYSIS AND DEVELOPMENT
Figure: Product life cycle
(Source: Stark 2015)
In the product life cycle a new product progresses are being described depending four
stages such as introduction (Restuccia et al. 2016). Growth, maturity and decline. Product life cycle
is interconnected with the changes of market situations. Therefore, it can be said that in order to
drive the marketing strategy as well as marketing mix, product life cycle has strong impact. In
case of Marcopolo, it can be placed in the introduction stage.
Internal capabilities
SWOT analysis on my abilities
Strength:

8OPPORTUNITY ANALYSIS AND DEVELOPMENT
Analyzing my understanding, I have the strong analytical skill, which helps me to
understand the situation in critical manner. I am very hardworking and have strong passion for
developing own business. I have good knowledge about the beverage industry. I also believe, I
have strong leadership capabilities, which can help me to understand the needs and demands of
individuals. From the self-observation, it has been identified by me using innovative and creative
skills, I will be able to deliver noticeable output to the Australian ice cream industry.
Weakness:
Analyzing my weakness it has been identified by me that I am quite impatient and shy,
which effects on my interaction abilities. It is true that I love to take challenges, but when people
do not listen to my command I get irritated.
Opportunities:
Using my emotional intelligence capabilities, it will be easier for me to form a strong
team. On the other hand, using my challenge accepting abilities, it will be easier for me to sustain
in the competitive business environment in Australia.
Threats:
As per my understanding, changing demands of the customers can create biggest threat
for me as being a new entrepreneur I am not quite aware of such situations.
Members in my team
In order to develop the business, the team will be developed with me and my two friends.
One of them have 3 years of experience in HR practices and another one is a marketing expert.

9OPPORTUNITY ANALYSIS AND DEVELOPMENT
Commercial viabilities
Analyzing the commercial viabilities of the product, it can be said that diet ice cream is
the unique selling point of Marcopolo as none of the organizations have introduced this product
in the market. On the other hand, analyzing the changing market trend, it has become quite clear
that people have become highly health conscious. In this situation, it can be assumed that the
product will be highly appreciated by the people in the Australian market. The value of the
product idea with cash flow can be US$430 and cash inflow will be US$380. With rapid market
growth, it can be assumed that the profit rate will be US$3% in coming 5 years. The relative
return in this business has the possibility to reach US$300.
Conclusion
In this study, it can be concluded that market analysis, has become necessary for
analyzing the changing market trend and demands of the customers. In this study, it has been
identified that demands for ice cream in the Australian market is quite high. On the other hand, it
is also true that people have become diet conscious, which can help Marcopolo to introduce diet
ice cream in the market. Analyzing its pricing strategy, it can be assumed that Marcopolo will be
highly appreciated by the Australian people.

10OPPORTUNITY ANALYSIS AND DEVELOPMENT
Reference list and bibliography
Caldera, H.T.S., Desha, C. and Dawes, L., 2018. Exploring the characteristics of sustainable
business practice in small and medium-sized enterprises: Experiences from the Australian
manufacturing industry. Journal of Cleaner Production, 177, pp.338-349.
Carrillo-Higueras, F., Prajogo, D. and Smith, L., 2018. Environmental commitment and its
drivers in the Australian wine industry: a behavioural approach. Australasian Journal of
Environmental Management, pp.1-20.
Euromonitor.com 2019. Retrieved from: https://www.euromonitor.com/ice-cream-and-frozen-
desserts-in-australia/report [Accessed on 29th Jan, 2019]
Findlay, P. and Thompson, P., 2017. Contemporary work: Its meanings and demands. Journal of
Industrial Relations, 59(2), pp.122-138.
Granato, D., Santos, J.S., Salem, R.D., Mortazavian, A.M., Rocha, R.S. and Cruz, A.G., 2018.
Effects of herbal extracts on quality traits of yogurts, cheeses, fermented milks, and ice creams: a
technological perspective. Current Opinion in Food Science, 19, pp.1-7.
Haskelberg, H., Neal, B., Dunford, E., Flood, V., Rangan, A., Thomas, B., Cleanthous, X.,
Trevena, H., Zheng, J.M., Louie, J.C.Y. and Gill, T., 2016. High variation in manufacturer-
declared serving size of packaged discretionary foods in Australia. British Journal of
Nutrition, 115(10), pp.1810-1818.
Ibisworld.com.au 2019. Retrieved from: https://www.ibisworld.com.au/industry-trends/market-
research-reports/manufacturing/food-product/ice-cream-manufacturing.html [Accessed on 29th
Jan, 2019]

11OPPORTUNITY ANALYSIS AND DEVELOPMENT
Liu, T., Wang, Y. and Wilkinson, S., 2016. Identifying critical factors affecting the effectiveness
and efficiency of tendering processes in Public–Private Partnerships (PPPs): A comparative
analysis of Australia and China. International Journal of Project Management, 34(4), pp.701-
716.
Marketresearch.com 2019. Retrieved from: https://www.marketresearch.com/product/sample-
7479045.pdf [Accessed on 29th Jan, 2019]
Restuccia, M., de Brentani, U., Legoux, R. and Ouellet, J.F., 2016. Product Life‐Cycle
Management and Distributor Contribution to New Product Development. Journal of Product
Innovation Management, 33(1), pp.69-89.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate environmental
management: Striving for sustainability. Routledge.
Smudgeeats.com 2019. Retrieved from: https://smudgeeats.com/australians-rank-second-world-
ice-cream-eating/ [Accessed on 29th Jan, 2019]
Soosay, C., Nunes, B., Bennett, D.J., Sohal, A., Jabar, J. and Winroth, M., 2016. Strategies for
sustaining manufacturing competitiveness: Comparative case studies in Australia and
Sweden. Journal of Manufacturing Technology Management, 27(1), pp.6-37.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume
1) (pp. 1-29). Springer, Cham.
Statista.com 2019. Retrieved from:
https://www.statista.com/outlook/40100400/107/ice-cream/australia#market-globalRevenue
[Accessed on 29th Jan, 2019]

12OPPORTUNITY ANALYSIS AND DEVELOPMENT
Yeoh, W. and Popovič, A., 2016. Extending the understanding of critical success factors for
implementing business intelligence systems. Journal of the Association for Information Science
and Technology, 67(1), pp.134-147.