BMM107 - Prom Coast Ice Cream: External & Internal Analysis Report

This case study provides a comprehensive marketing analysis of Prom Coast Ice Cream, a Victorian ice cream manufacturer. It explores the company's marketing strategies and capabilities, including their focus on a clear brand identity, customer knowledge, social media marketing, and website optimization. The analysis evaluates the external environment using the PESTEL framework, considering political, economic, social, technological, environmental, and legal factors. The internal environment is assessed using SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. The study also identifies and explains the target market group using the STP (Segmentation, Targeting, and Positioning) model, focusing on demographic segmentation. This analysis aims to provide insights into the company's marketing approach and its impact on the market.

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Marketing principle
System04116
3/26/2019

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Executive summary
The prom coast ice cream industry is selected for the research project of marketing
principle. The research is performed to analysis and evaluates the microenvironment and macro
environment of the prom coast ice cream industry according to the analysis checklist and
marketing plan outlines. For this analysis, the PESTEL and porter‘s five forces model is used.
Further, the report also conducts research for analysis and evaluating the target market group for
the prom coast ice cream industry.
For this purpose, the marketing strategies and capabilities of this industry need to be
understood. From this study, it is understood that how industries is affected by target audience
and market environment. In what way ice cream industry make steps towards the success and
meets the needs of the customers. What strategies they formed to grow in this market.

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Contents
Introduction......................................................................................................................................3
Marketing strategies & capabilities.................................................................................................4
Analysis and evaluation of external environment...........................................................................4
Analysis and evaluation of internal environment............................................................................6
Identification and explanation of target market group....................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
Prom coast ice cream and sorbet is selected for this assignment. It is an ice cream
manufacturing industry, which is located in Toora, Victoria. The owners, Janet and Robert have
started making ice cream and sorbet at their Walkerville Kiosk. They develop a unique range of
products that catered for dairy, non-dairy and gluten intolerant customers (Prom coast ice cream,
2019).
The aim of the company is to grow the business by opening more outlets in Gippsland
and the Mornington Peninsula and in Melbourne and plan to open a scoop shop in foster.
This report is all about analyzing and evaluating marketing strategies and capabilities for
the prom coast ice cream industry. For this purpose, the micro and macro environment of ice
cream industry is analyzed and evaluated. To analyze the micro and macro environment of prom
coast ice cream industry, the PESTEL and porter’s five forces model is used. Further, the
research is made for identify the target market by using STP model of marketing. With the help
of applicable marketing tools or models, the analysis and evaluation of ice cream manufacturing
industry is done

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Marketing strategies & capabilities
The marketing strategies of prom coast ice cream and sorbet are:
1. Establish a clear identity: The Prom coast have a clear identity. They know about their
industry represents and have a suitable name, logo, colors and imagery that convey this to
their customers. They collaborate with the local distributor of Gippy milk, Potak food
services. This can benefit one another (Wroblewski, 2018).
2. Know their business and customers: Before they choose the elements to integrate into
their overall marketing strategy, they think carefully about their target customers. The
demographic, living location, age, the product and services they prefer the most and the
way they look for their product.
3. Use Facebook for advertisement: They widely use Facebook and has group with over
1000 followers and growing Instagram presence. The social media is key way for them to
maintain contact with existing customers and finding new customers. They find Facebook
ads as one the best way to target a definite group.
4. Have great website: They have good design website that put people on their company.
They make site to a user friendly, easy to navigate and logically lay out which brings the
customer to their site.
5. Use google my business: They use google my business tool used for local industries with
a general customer base. When customer in the area search on google for the product they
provide, appear near the top of that search. By this way, their business has automatically
gains credibility and trust of their customer.
6. Promote awareness of the product with free samples and demonstrations: They let people
to try their products to build awareness of their product.
7. Use the referrals: They use existing customers to drum up their business and incentivize
referrals to influence their customers to bring them more. According to prom coast,
referral leads provides much higher conversation rate than several other channels.
8. Use google ad words: it is powerful tool of marketing. Prom coast use this tool as it is a
key for customers to find them when they search on google by using AdWords. It
increases the chances of people watching their name (Gallo, 2018).

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Analysis and evaluation of external environment (macro environment)
For analyzing and evaluating the external factors that affect the prom coast ice cream
industry, the PESTEL analyses need to be done:
1. Political factor: In United Kingdom, political factors have modified the food related
industries. In which main emphasis is on maintaining standards of health and safety. An
ice cream industry is severely regulated and monitored. Common regulatory changes are
implementing. The prices of ice creams were affected after Brexit as import duties on
daily products were also go up when U.K votes leave the European Union. They had
import duties up to 40 to 50 percent that is why the price of dairy products was increased
and ultimately the prom coast Ice cream, sorbet had to increase the price of Ice cream,
and consumers had to pay for that (Dallison, 2016).
2. Economic factor: according to the world reports of IBIS, the demand for standard and
premium ice cream products has increased in United Kingdom. This affects the prom
coast ice cream industry, as they have to check quality of products on regular basis. They
make their ice creams and flavors according to the high standard demand of customers. In
addition, the power of purchase of pound excellent is going virtuous and persons buying
balance has improved. Even the ice cream industry in United Kingdom is operating £395
million with the average annual growth rate of 3.5% (IBISWorld, 2019). This is a robust
market for prom coast ice cream and sorbet industry because of its brand value and
effectiveness of cost and recognized economies of scales.
3. Social factor: increasing awareness of health among the consumers is affecting adversely
the complete demand for ice cream products. Prom coast has to make their products
keeping in mind the health of the customer and spend more on quality of product that
reduce the fear of health related issues. The customers desire to buy ice cream however;
they fear corpulence and other health related issues so that products produced by prom
coast can gain trust of target audience. It is a great opportunity for prom coast ice cream
and sorbet to target social patterns and deliver ice creams with low calories. For this
purpose, they substitute sugar with healthy plant stevia (Winther, 2018).
4. Technological factor: technology allowed prom coast ice cream and Sorbet Company to
make best packaging and method of seal. Internal process mechanism of the company has
been upgraded because of technology. It is a necessary basis of competitive advantage.

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The various innovations in product have been made to continue in the ice cream industry
as they have the demand from consumers for highest value and quality in the ice creams
they produced. They face process challenges, high-pressure homogenizers, and to
overcome this, they use extrusion line to boosts flexibility (Knott, 2017).
5. Environmental factor: every big company takes social initiatives for the sustainability of
environment. Prom coast ice cream and Sorbet Company is dedicated to practice
environmentally sound industry all over the world and thus playing an important role in
stabilizing the natural resources. Prom Coast Company needs to be globally sound and it
requires ensuring that the impact of its environment is minimal. The ice cream in the
freezers affects the wildlife on planet as this tasty treats start with the use of milk from
domesticated cows, but chocolate, vanilla and other related ingredients come from places,
which are home to thousands of species. These widely affect the process of prom coast
industry, as they require some ingredients for producing different flavors of ice creams
for which are prominent in UK or across the country (Grand view research, 2019).
6. Legal factor: there are many influential legislation and regulatory factors in a prom cost’s
environment which can alter the operations of company. They need to labelled the
product as ice cream and had to contain a minimum of 5% fat and 2.5% milk protein
according to the food labelling regulations which is retracted by the introduction of EU
legislation (Mullan, 2016). Prom coast needs to design its strategies according to the
countries in which are marketed and region’s health and safety related laws as well as
hold a close watch on changing economic policies and taxes.
Analysis and evaluation of internal environment (micro environment)
For analyzing and evaluating the internal marketing situation of prom coast ice cream and
Sorbet Company, the SWOT analysis tool is used:
1. Strengths:
 Prom coast ice cream and sorbet produce quality product with better taste.
 Joint venture project
 Directors of prom coast ice cream and sorbet are well experienced and credible.
 They maintain backup by the entire fixed and current assets.

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 They have wide varieties of unique ice cream and sorbet flavors.
 Established and recognized brand in UK.
 A blood orange flavored sorbet is major strength of prom coast ice cream as it
won the gold in 2016 and best in other categories.
 Their products have the lowest embedded food miles of any brand in their food
category.
2. Weaknesses:
 Difficulties in penetrate to a new market.
 Newly produced different flavored ice cream and sorbet have less market.
 Strong competition in the market from national and international ice cream and
sorbet products for example: Ben & Jerry ice cream in UK.
 The supply of the products is not limited as the size of the market is large.
 They face seasonal sales of the products as ice creams and sorbets are used in
summers mostly.
 Produce Low calories ice cream, as people in UK are health conscious they
preferred low calories ice cream only.
 Credit facility is not secured by land & building (Lorette, 2019).
3. Opportunities: the consumption of ice cream and sorbet is increasing in restaurants,
hotels, parties and in various occasions. Prom coast is catering quality product with better
taste in affordable price there is huge demand of product and prom coast has great
opportunities to grow ahead. The industry is expanding its business in major countries
across the world.
 Increasing income, change in standard of living party cultures;
 Huge young and old population for low calories ice cream in different flavors;
 High economic development and liberalization of market;
 Growing ice cream market (Industrytoday, 2018).
4. Threats: the competition in UK for ice cream industry is too high due to low
differentiation. The market for ice cream in UK is estimated at £1.4 billion in 2018 up 26
percent from 2013 (Twomey, 2015). Lower calorie ice cream brands have caused a stir
in 2018 and these products relatively of high prices. Prom coast need to maintain good

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image as produce low calorie ice cream with low prices and better quality so that
differentiation will be high from those competitive company.
 There is threat of competition from national and international brands ice cream
brands like Ben & Jerry, Baskin Robbins, etc. (Suzanne, 2013)
 Economic and regulatory changes
 Threats of substitute as many ice cream industries are growing and producing
products as like prom coast ice cream and Sorbet Company.
Identification and explanation of target market group
Target market group of prom coast ice cream is identified by using STP model that is
segmentation, targeting and positioning:
1. Segmentation: segmentation of target market group on the basis of (Kokemuller, 2019):
 Demographic: it is breakdown by age and both higher and lower income level
people purchase income Prom coast ice cream as they produced products by
keeping in mind the customers. The age group after research found that above 30
years people are targeted for their products (Kokemuller, 2019).
 Psychographic: this refers to personality and emotions, which is linked to choice
of purchase. Prom coast target customers by interviews, surveys and customers
data and produce their products after such activities.
 Geographic: prom coast is drilled down by climate for their production of ice
creams across the countries (Carvalho, 2019).
2. Targeting: the prom coast ice cream company’s market is large. They select both higher
and lower income level people as they produce premium quality and regional and
seasonal quality ice creams. They focus on age group of above 30 years as they produced
low calorie ice creams, which is the major health issue of people in UK.
3. Positioning: After deciding the target market, the prom coast has decided what position it
desires toward target market. They tried to position their products in a manner because it
distinct themselves from the other competitors like Ben & jerry ice cream and provide
their products the best strategic benefit in the target market.
 Premium ice cream – high quality & high price

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 Seasonal & regional ice cream – high quality& low price (Graham, 2008).
Conclusion
From the above analysis and evaluations, it is to be concluded that best marketing
strategies and tactics helps the company to survive in the competitive market and increase or
maintain the brand value. The prom coast ice cream industry is very prominent industry in UK
for making ice creams. This company makes effective marketing strategies and that why it is
now top ranked ice cream industry in the world. However, this company faced many barriers of
external and internal environment that affect their market but they made production by keeping
in mind the customer’s and environment sustainability. Regular monitoring of products increases
the trust of the buyers and they can purchase those products even at high price. The prom coast
mainly focus on above 30 years of age group as they make strategies that by making low calorie
ice cream will not affect the health of those customers and it helps in increase no. of buyers as
well as brand value.

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References
Carvalho, M. (2019). STP- concept. Retrieved from: https://www.pinterest.com/miguelzin/stp-
concept/
Dallison, P. (2016). Price of ice cream ‘will go up’ after Brexit. Retrieved from:
https://www.politico.eu/article/price-of-ice-cream-will-go-up-after-brexit-rasberry-ripple-
unilever/
Gallo, K. (2018). Essential marketing strategies for small business owners. Retrieved from:
https://justcreative.com/2018/06/06/marketing-strategies-small-business/
Graham, H. (2008). Marketing strategy and competitive positioning. UK: Pearson Education.
Grand view research. (2019). Ice cream market size, share & trends analysis report. Retrieved
from: https://www.grandviewresearch.com/industry-analysis/ice-cream-market
IBISWorld. (2019). Ice cream production- UK market research report. Retrieved from:
https://www.ibisworld.co.uk/industry-trends/market-research-reports/manufacturing/
manufacture-of-food-products/ice-cream-production.html
Industrytoday. (2018). Ice cream market industry trends, business revenue and key players
profile by forecast to 2022. Retrieved from:
https://industrytoday.co.uk/pr_and_marketing/ice-cream-market---industry-trends--
business-revenue-and-key-players-profile-by-forecast-to-2022/81407/81407
Knott, M. (2017). Ice cream sector responds to new technical challenges. Retrieved from:
https://www.foodmanufacture.co.uk/Article/2017/10/28/Ice-cream-sector-responds-to-
new-technical-challenges
Kokemuller, N. (2019). Analysis of segmentation, targeting and positioning. Retrieved from:
https://smallbusiness.chron.com/analysis-targeting-segmentation-positioning-64494.html

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Lorette, K. (2019). Porter’s five forces industry analysis. Retrieved from:
https://smallbusiness.chron.com/porters-five-forces-industry-analysis-3289.html
Mullan, D. (2016). Compositional standards for ice cream. Retrieved from:
https://www.dairyscience.info/index.php/202-uncategorised-sp-269/296-standards.html
Prom coast ice cream. (2019). Our story. Retrieved from: https://www.promcoasticecream.me/
Suzanne, C. (2013). 1 billion industry that is ice cream in UK was celebrated at the ice cream
expo in harrogate. Dairy industries international. 78(4), 28.
Twomey, S. (2015). Prom coast ice cream a tasty earner for toora couple. Retrieved from:
https://www.weeklytimesnow.com.au/country-living/prom-coast-ice-cream-a-tasty-
earner-for-toora-couple/news-story/cabd6d3fcb616f8150f2589f68294e6b
Winther, A. (2018). UK ice cream market report. Retrieved from: https://store.mintel.com/uk-
ice-cream-market-report
Wroblewski, M. (2018). Introduction to the principles of marketing. Retrieved from:
https://smallbusiness.chron.com/introduction-principles-marketing-70888.html

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