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Saturday, January 7, 2012

ice cream

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Executive Summary


New Zealand Natural Pty Ltd is an Australian company based in Sydney, Australia from where it operates as the national and international licensor and the distributor of its products (ice cream and frozen yoghurt), exclusively to its chain of parlours.


Ice cream is a favourite treat for adults and children alike. Adults are more likely to indulge in super-premium and premium ice cream than any other frozen treat.


A 001 market research reveals that almost everybody, young and old, rich and poor, likes ice cream. It is truly an Australian icon. But ice cream, like other products, has been forced to change with the times. Different quality products, different flavours and different fat/calorie contents are all important to specific segments of respondents. Ice cream is a simple indulgence. New flavours and textures make it possible to spend a year tasting products and never repeat the same flavour. Some consumers convince themselves that even the most super-premium product is healthy.


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New Zealand Natural has identified its organisation segmentation, target market and encountered a great positional strategy in connection with their exotic products of natural ice-creams and yogurts. We will review them in the following report.


Target Marketing for New Zealand Natural


The target market for New Zealand Natural is quite broad as the products they develop do endure a slice of lavishness in a lot of people’s taste. Although the target market is broad, NZN generally concentrate on the youngsters to middle aged. This consists of ages between 1-16, 16-0 couple, 16-7; both male and female.


Stimulus-response model is used to understand buyer behaviour of New Zealand Natural’s target customers.


Fig 1.1 Model of Consumer Buyer Behaviour


Fig 1.1 shows the major factors influencing buying behaviour, the buying decision process and the stages of the buying decision process.


The Major Factors Influencing Buying Behaviour


Cultural Factors


A consumer’s buying behaviour is influenced by cultural, social, personal, and psychological factors. Cultural factors exert the broadest and deepest influence.


Culture


Culture is the most fundamental determinant of a person’s wants and behaviour. (p.161)


In Australian culture, ice cream gives people a healthy image as it make of dairy product. Australian Dairy Corporation which is an Australian government owned company has constantly advertise dairy products on TV and magazines to educate Australian the goodness of dairy products.


Subculture and Social Class


New Zealand Natural target their consumer with middle to upper income market where it locates its parlours mainly in tourist area, high profile shopping centre, heart of the cities, joint venture with Hoyts cinemas etc. These areas generally have high density of young people with high purchasing power.


Social Factors


Reference Group


The research conducted by Australasian Society for Study of Obesity shows more than 0% of young Australian are either overweight or obese. People are more concern into the issue of nutrition and dietary than ever. New Zealand Natural may face a difficulties from family not let their child having an ice cream and female may be on diet not having an ice cream etc.


Personal Factors


Age and Stage in the Life Cycle


New Zealand Natural targets consumers lie on


1. Bachelor stage young, single, not living at home


. Newly married couples young, no children


. Full nest II Youngest child, six or over


These stages have a similar characteristic which has high purchase rate or better financial position. (p. 168)


Psychological Factors


Motivation


Under the Maslow’s Hierachy of Needs, ice cream is classified as a social need where need arise from psychological states of tension. (p.17)





The Buying Decision Process


Buying Roles


The buying roles of “Scooped” ice cream market have serval forms of Decision Making Units; it can be briefly divide into three groups


Fig 1.





Buying Behaviour


Variety-Seeking Buying Behaviour


Consumer decision-making varies with the type of buying decision. The buying situation of ice cream is characterized by low involvement but significant brand differences. With this buying behaviour, consumers often do a lot of brand switching. The consumer has some beliefs about ice cream, chooses a brand of ice cream without much evaluation, and evaluates the product during consumption. Next time, the consumer may reach for another brand out of a wish for different taste. Brand switching occurs for the sake of variety rather than dissatisfaction. New Zealand Natural as a Sydney “Scooped” ice cream market leader, they have constantly launched new taste of ice cream, diversify its ice cream into different types of products such as Smoothies, Milk shakes & Thick Shakes and Chillos etc.


Width of the product mix


Depth of the product mix Treats and snacks Drinks Cakes


Scooped Smoothies Ice cream cakes


1 premium ice cream Fruit & Vegetable Juices


low-fat ice cream Fruit Whips


low-fat frozen yoghurts Milk Shakes & Thick Shakes


fat-free sorbets Chillos


frozen desserts


Soft-served


5 low-fat frozen yoghurts


low-fat frozen desserts


Fruitflo


Figure 1.


The Stages of Buying Decision Process


Figure 1.4


The stages of the buying decision process of ice cream differ from other general products where consumer often skip the stage of “Information search”.


1. Problem Recognition


Consumer starts their buying process when he/she recognizes a problem or need.


Internal stimuli after meal, as a treat etc.


External stimuli smell of waffle cone, advertising, hot weather etc.


. Evaluation of Alternatives


After consumers recognize their problem or need of ice cream, they will evaluate their alternatives. New Zealand Natural provide diverse products and excellent service to their customers in order to be an evoke set.


Market Segmentation


Levels of Micromarketing- Segment Marketing


New Zealand Natural’s products segment on a wide range of market, full cream “Scooped” ice cream market lies on the market segment which consists of a large identified group within a market with similar wants, purchasing power, geographical location, buying attitudes, or buying habits.


Segmenting Consumer Markets


New Zealand Natural segments market base on Geographic, Demographic, Psychographic, and Behavioural Segmentation.





Figure .1


New Zealand Natural has currently over 10 parlours and mini parlours worldwide, 5 parlours in Australia, 5 in New Zealand, 16 in Indonesia, 6 in Singapore, in Korea and 7 in the United Kingdom. All parlours are required to maintain high standards of operation and customer service. (http//www.nzn.com.au/aboutus/aboutus.html)


Australia Market





Figure .


New Zealand Natural has 46 parlours in NSW, 16 in QLD, 1 in VIC, 11 in SA and NT, and 5 in WA. New Zealand Natural locates its parlours on high profile shopping centre, tourist areas and joint venture with Hoyts cinemas in order to meet its target consumer.


Major Segmentation Variables for Consumer Markets (New South Wales)


Geographic


Region Refer to Appendix I


Density High density


Demographic


Age 1-16, 16-0 couple, 16-7


Gender Male, Female


Psychographic


Life style Healthy


Behavioural


Benefits Quality, service, tasty, diversity


User status All


Usage rate Light- medium user (once a week to twice a week)


Loyalty status Medium to Strong


Figure .


Market Targeting


Selective Specialization


Figure 1. shows that New Zealand Natural provides a wide product range to target on different market. E.g. fat-free ice cream is target on people who are on diet. New Zealand Natural adopt in Multisegment Marketing Coverage Strategy has the advantage of diversifying the firm’s risk.


Product Specialization


This approach is basically just verifying their main product ‘ICE CREAM’ for several segments. Usually the downside risk would be that the products may be supplanted by an entirely new invention. But New Zealand won’t be too worried as ice cream is regarded as an all time favourite treat and will definitely maintain their market.


Market Specialization


New Zealand Natural also use unique types of ingredients to develop low fat dairy products in order to catch the niche market of women who are trying to lose weight but would also enjoy a treat like ice-cream.


These are the three target market strategies that New Zealand Natural has chosen to operate on, and up until today, they have been very successful with the choice of their decision.


The product life cycle of NZN


The PLC is divided into four stages. Introduction, Growth, Maturity, Decline. NZN has reached its maturity stage. This is when the sales growth slows down due to the fact that the products have achieved acceptance by most potential buyers. The profits are stabilised and maintained throughout time. NZN are not particularly afraid that in the near future they will reach the decline stage. Ice cream is a seasonal product; there will be plenty more consumers during summer and less during winter due to weather changes. Figure . describes the seasonal variation of the ice cream sales.





Fig.. ice cream sales 1-000 (http//www.dairycorp.com.au/statistics/index.htm)


Ice cream will always have a definite market, and since NZN has a large portion of the market in their hands already, they will only need to maintain their standards and varieties in order to sustain their sales. NZN only reached their maturity stage as a result of their well managed and planned introduction stage. NZN thought about the concerns of people wanting the same appetizing summer treat but in low calories by reason of health issues. Their growth stage was impressive resulting franchises widely distributed in Australia and other countries in the latter.


NZN positioning in the market


With the high-end segment of the ice-cream industry hotting up, NZN is positioning themselves as premium ice-cream outlets across the country.


The ice-cream market until now did not have clearly demarcated segments, but now we have separate segments like low-priced ice-creams, softies and premium segment, so it is easier to position it as a brand. Besides giving out standard flavours, we would also offer ice-cream sundaes, thick shakes, floats, and ice-cream sodas as well making it even more striking for consumers to enjoy the varieties. NZN has positioned themselves highly in the market, making consumers believe that they sell quality levels of ice cream and is the largest ice cream stall line in Australia. NZN offers a premium product in the world of ice cream. The ice cream is made with high characteristics, rich ingredients and can demand a premium price. It is not, however, the only premium ice cream. Therefore, its product position among premium ice cream is less differentiated than is its product position among all ice creams. NZN has established a theory that consumers are loyal to brands and are, generally, willing to pay a premium for products bearing a brand name they know and trust.


Due to so much competition in the ice cream market, NZN has chosen to focus on widening its distribution network and grabbing consumer attention through competitive pricing and positioning of its products. Clearly differentiated from the mass, the premium positioning would attract the most discerning customers with products of acclaimed international quality.





Communication Strategies


“The marketing communications mix consists of advertising, sales promotion, public relations and publicity, personal selling and direct marketing. However, the product’s styling and price, the package’s shape and colour, the salesperson’s manner and dress, the store’s d�cor � all communicate something to buyers.” (Marketing Management, Phillip Kotler. Chap 16, pg 0.)


NZN uses a wide range of varietal methods to communicate with their customers. The sources ranges from flyers, brochures to buy 10 get 1 free discount cards to ice cream tasting events to competitions etc. The following will be an outline of one of NZN’s marketing campaigns and the types of communication strategies used


Oct 14 00 � New Zealand Naturals Ice Age SupaSoft Promotion (see appendix)


Target Market


᠋ children aged between -15


᠋ female and male


᠋ current and non-current consumers


᠋ initiators, influencers, users


Communication Objectives


᠋ NZN uses the Learn- Feel- Do sequence on the desired target market, seeking cognitive, affective and then behavioral responses.


᠋ The purpose of the campaign was to catch awareness of the promotion (cognitive)


᠋ Then to make the consumers feel as though they need to taste the product (affective)


᠋ Lastly is to ensure that the desired consumers come to a shop and purchase the advertised product.


Designing the message


᠋ The message should gain attention, hold interest and arouse desire and elicit action.


᠋ Content NZN uses rational appeals with this promotion. This appeal will cause an affect on consumers (especially the little kids) that they will gain value from the products. (Value being � happiness, sense of belonging to the children’s world). The children, who are the main target market of this promotion is very knowledgeable about the promotional products and accountable to others for their choices.


᠋ Detailed message content (see appendix)


᠋ Message structure the advertisements on this campaign are promoted via flyers, children’s magazines, bill-boards, internet, at Wonderland, cinemas, and all participating stores. The advertisements only take up 1 sided page. This will transact the message across clearly without having to provide too much detail to confuse consumers. The advertisements in magazines and assigned on the right hand side of the magazine as when readers flip the pages, the first thing they will spot, will always be the content on the right hand side.


᠋ Message format the headline would be located on the top, featuring the cartoon “ICE AGE” and the word competition. A picture of the main characters will be right in the middle where it catches the attention of all the children. Colour will be an eye catching ‘blue’ as that’s the colour the cartoon uses for its poster. It will bring the children directly to their memories of the movie.


᠋ Message source would be the main characters of the cartoon as they are likeable, attractive to children and humorous.


Communication Channels


᠋ This campaign’s main source of communication channel will be print. Mainly flyers which will be distributed everywhere.


᠋ Word of mouth will also be a communication channel. This piece of news will be largely spread amongst children interactions.


Communications Budget


᠋ This method of advertising for the campaign is of a very affordable method. Printing flyers and posting bill boards are also of a very low budget. Return in sales will be highly profitable as the products are not hard to make since its just decorating the cone of ice-cream. Prizes are low in costs therefore the promotion will be very affective in terms of being able to catch the children’s attention with just flyers and verbal communication. Children will be satisfied with the prizes and will be very delighted to see the new promotional ice cream cones of their favorite cartoon characters.


Marketing communications mix


᠋ For this particular campaign, NZN will uses the ‘sales promotion’ technique offering a competition ‘contest’ proposing communication, incentive and an invitation. It is just for a limited time only but will be enough to fulfill / uplift sales in the short run.


Measuring results





Appendix I


Blacktown


Kiosk 5, Westpoint Shopping Centre


17 Patrick Street


Blacktown NSW 148


Phone 6 65


Bondi


Shop 1, 178 Campbell Parade


Bondi NSW 06


Phone 65 041


Burwood


K05, Westfield Shoppingtown


100 Burwood Road


Burwood NSW 14


Phone 715 80


Casino - Star City


R1, Star City Casino


80 Pyrmont Street


Pyrmont NSW 00


Phone 55 686


Charlestown Square


K, Lower Level, Charlestown Square


Pearson Street


Charlestown NSW 0


Phone 40 60


Chatswood Chase


Victoria Avenue


Shop LG1 Lower Level, Chatswood Chase


Chatswood Chase NSW 067


Phone 410 008


Chatswood Westfield


Shop 1, Westfield Shoppingtown


Chatswood NSW 067


Phone 415 680


Coogee


1 Coogee Bay Road


Coogee NSW 04


Phone 665 0516


Cronulla


B Cronulla Plaza


Cronulla NSW 0


Phone 5 65


Erina


Shop TK7 Erina Fair


Erina NSW 50


Phone 465 4606


Fox Studio


Shop 15-G0A Bent Street, Fox Studios


Moore Park NSW 16


Phone 854 000


Galleries Victoria


Shop A0, The Galleries Victoria


500 George Street, QVB


Sydney NSW 000


Phone 8 451


Hornsby


Kiosk 106, Westfield Shoppingtown


Hornsby NSW 077


Phone 477 4500


Liverpool


Kiosk 000, Westfield Shoppingtown


Macquarie Street


Liverpool NSW 170


Phone 600 8078


Macquarie Centre


Shop 4A, Level 1, Macquarie Centre


Herring Road


North Ryde NSW 11


Phone 888 715


Manly


Shop 11, 74-78 La Gallerie Shopping Centre


Manly Corso


Manly NSW 05


Phone 77 6588


Market City


Kiosk 105, Market City


A Quay Street


Haymarket NSW 000


Phone 81 77


Marrickville


Kiosk 11, Marrickville Metro Shopping Centre


Cnr Smidmore & Murray Street


Marrickville NSW 04


Phone 557 88


Miranda


Shop 1104, Westfield Shoppingtown


Kings Way


Miranda NSW 8


Phone 56 55


North Sydney


Shop M5, Greenwood Plaza


North Sydney NSW 06


Phone 5 4514


Pagewood


Shop 10, Westfield Shopping Town


Bunnerong Road


Pagewood NSW 05


Phone 4 5488


Parramatta


Shop K05, Level Westfield Shoppingtown


Church Street


Parramatta NSW 150


Phone 687 0811


Roselands


Shop L65, Lower Ground Level Roselands Centre


Roselands Drive


Roselands NSW 16


Phone 758 8


Sydney Central


Kiosk LP Sydney Central Plaza


450 George Street


Sydney NSW 000


Phone 0760


The Entrance


Shop 1, 4 Marine Parade


The Entrance NSW 61


Phone 4 05


Tuggerah


Kiosk 10, Westfield Shoppingtown


Cnr Gavenlock Rd & Wyong Rd


Tuggerah NSW 5


Phone 45 464


Warringah Mall Shop


8A Warringah Mall Pittwater Road


Brookvale NSW 100


Phone 05 678


Appendix ii


If you loved the movie, youll love our fantastic character cones depicting Manny, Sid & Diego. At only $, theyre a great treat for all the Ice Age fans.


ICE AGE COMPETITION


Terms and Conditions


1.Information on how to enter form part of the terms and conditions of entry.


. Entry is open to all permanent Australian residents. Employees of the Promoter, and their immediate families, associated agencies of the Promoter and companies associated with the promotion are not eligible to enter.


. Consumers purchasing both a single scoop and an Ice Age SupaSoft Cone from a NZN’s store will be eligible to enter. To enter consumers will need to complete the entry form made available to them upon purchase of the above products with all details as requested then place their entry in the entry collection box that will be located within the store of purchase. Personal identification may be required to claim a prize. Only complete entries will be eligible.


4.The competition commences on Monday 14 October 00 and concludes at close of business on Sunday 10 November 00.


5. The draw for all winners will take place from all valid entries at the store of entry on Monday 11 November 00 at 4pm (local time). All winners will be notified by mail within 8 days of the draw.


6. New Zealand Natural has 46 parlours in NSW, 16 in QLD, 1 in VIC, 11 in SA and NT, and 5 in WA. 1 x winner will be drawn in each store. Each of the 5 winners will receive 1 x Ice Age video. The individual prize value is $4.5.


7. The total prize pool value is $6,511.5. (NSW - $1,771.45, ACT - $.80, VIC - $1,7.40, QLD - $1,047.0, SA - $1,07.85, WA - $8.5, TAS - $4.50, NT - $14.70)


8.Prizes are the recommended retail value as provided by the supplier and are correct at the time of printing. The Promoter accepts no responsibility for any variation in prize value. Prizes are not transferable or exchangeable and cannot be taken as cash.


.Judges decision is final and no correspondence will be entered into.


10.The Promoter shall conduct such further draws as may be necessary in the relevant store / stores on 11 March 00 at 4pm to distribute any prizes unclaimed by that date subject to any written direction given under Reg. 7 of the Lotteries and Gaming Act 1 (SA). Winners will be notified by mail within 8 days of the draw.


11.The promoter shall not be liable for any loss or damage whatsoever which is suffered (including but not limited to direct or consequential loss) as a result of taking the prize, except for any liability which cannot be excluded by law.


1. In the event that for any reason whatsoever a winner does not take the prize at the time stipulated by the Promoter then that prize will be forfeited by the winner and cash will not be awarded in lieu of that element of the prize.


1.All winning entries become the property of the Promoter and will be entered into a database. The Promoter may potentially use the entrants names, addresses, telephone numbers and e-mail addresses for future promotional, marketing and publicity purposes in any media worldwide without notice and without any fee being paid unless otherwise advised by the entrant.


14.Printing errors and other quality control matters will not be used as a reason for refusing the awarding of a prize.


15.If for any reason this promotion is not capable of running as planned, including due to infection by computer virus, bugs, tampering, unauthorized intervention, fraud, technical failures or any other causes beyond the control of the Promoter, which corrupt or affect the administration security, fairness or integrity or proper conduct of this promotion, the Promoter reserves the right in its sole discretion to disqualify any individual who tampers with the entry process.


16.In the case of the intervention of any outside agent or event which naturally changes the result or prevents or hinders its determination, including but not limited to vandalism, power failures, tempests, natural disasters, acts of God, civil unrest, strikes; the Promoter may in its absolute discretion cancel the event and recommence it from the start on the same conditions subject to State Regulation.


17.The promoter is Wendy’s Supa Sundaes Pty Ltd 0 Fullarton Rd, Eastwood SA 506. ABN number 5 868 0 45.


18.NSW permit number TPL0/10186, SA permit number T0/40, ACT permit number TP0/417, NT permit number NT0/74.


Appendix iii


PROMOTION


Frequent Lickers


If you love our ice cream youll love our Frequent Lickers program.


The more you lick the more FREE ice cream you receive. Lick your way through all our delicious new flavours.


Ask your local store for your own Frequent Lickers card.


Other bits and pieces that u may want to put into the report.


SWOT Strengths and Weaknesses


᠋ Strengths


᠋ Develop new flavors


᠋ Company’s Image


᠋ Caring Capitalism


᠋ Unique Packaging


᠋ Weaknesses


᠋ No distribution System to the retailer - Pepsi


᠋ Inconsistent Manufacturing


᠋ Succession issue


SWOT Opportunities and Threats


᠋ Threats


o Half of their sales are to a major competitor


o Health Issues


o Lack of a distribution system


᠋ Opportunities


o Price not an issue


᠋ Competencies


᠋ Company develops exotic and uniquely named flavors on a continuing basis to keep customers excited


᠋ Offbeat image and caring capitalism has attracted a group of loyal followers


᠋ Great taste, lots of mixins, Vermont made dairy products and all natural ingredients gives a reputation for quality


᠋ Unique packaging contributes to the overall image


᠋ Ethics - We are the good guys, right???


᠋ Recalling the bad batch of chocolate


᠋ Nuts in the Rain Forest Crunch Ice Cream


᠋ Grease


Segmentation


Ice Cream market can be segmented in three different ways, namely on the basis of flavours; on the basis of stock keeping units / packaging and on the basis of consumer segments.


On the basis of flavours the market today has a number of flavours like vanilla, strawberry, chocolate, mango, butterscotch a number of fruit flavours, dry fruit flavours. The market is totally dominated by Vanilla, Strawberry and chocolate, which combinedly account for more than 70% of the market followed by butterscotch and other fruit flavours.


On the basis of stock keeping units / packaging the market can be divided into 4 segments


• Cones


• Cups


• Sticks or candies


• Take-aways


On the basis of the consumer segments the market can be divided into four segments


• Impulse segment (Pull cart)


• Retail ( Home take-aways)


• Institutional / catering


• Parlours


While institutional or catering accounts for around 15%, retail and impulse combinedly take the major chunk with 70% of the market


TARGET MARKET Age 0 - 45 Sex Female & male Family Lice cycle young single and or married Income R7000 and above LSM Upper middle and lower middle Lifestyle Liberal, adventurous, health orientated Currently the target market is the adult market and the ice cream is positioned as the ultimate in personal indulgence


Segmentation Market segmentation process 1. Identify dimensions The dimension is already identified. We want to go in for ice cream business. . Develop relevant market segment profile Ice cream is an item, which appeals to all the sectors of society. We can cater to the following segments å Families å Kids (1-1 yrs) å Teenagers (1-0) å Young adults (0-5) å Adults (5 & above) . Forecast total market potential for each segment a) Analyze competitive forces within each segment Strong competition exists for families, kids, teenagers, and young adult categories from Baskin Robins, TCBY, and Breslers and Haagen-Dazs. These are our main competitors


Ice creams are available in various forms such as cone, cups, bar (candy), party pack etc. Candy sticks account for about 5-0% of volumes, whereas cups and other novelties contribute the rest.





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