The ice cream market as a whole has been rather stagnant in past years due to lack in innovation. However, I will be specifically focusing on the ‘Ice Cream and Gelato Franchises’ industry. This industry is defined as firms that primarily serve ice cream or gelato to be consumed either on or off premises. Major players of this industry are Dairy Queen, Cold Stone Creamery, and Baskin Robbins. From 2011-2016 the growth rate was 3.2%, 2016-2021 is expected to be 0.9%. While 3.2% is a substantial growth rate, the expected 0.9% is very different. The slow growth rate in future years may be due to the fact that “health conscious American’s have been moving away from ice cream and gelato treats, which has negatively impacted the industry.” (Curran) With consumers seeking healthier options many are turning to plant-based ice creams. Planet-based ice cream is becoming a market of its own rather than a fringe market of the ice cream industry. It is estimated that by 2017 this new market will be worth $2.45 billion. ("Global Plant-based Ice-creams Market Poised to Reach US$ 2.45 Bn Value by 2027-end" 2017) While many traditional ice …show more content…
The economic situation is an environment to be considered when analyzing consumer behavior for this product. Disposable income is very important to ice cream consumption. Since ice cream is typically considered a luxury good, one’s disposable income will affect their demand. Generally, when the price of a normal good increases one will consume less of that good, if the price decrease one will consume more. However, these prices are relative to the consumer’s disposable income. For example, if an individual receives a raise and their disposable income changes from $50 a week to $100 a week, their opportunity cost of buying ice cream may decrease, causing an increase in their demand for ice cream. This can happen even though the actual price remains the
Everyone is looking for better and healthier life! People today pay more and more attention to the food they eat, they want it to be healthy and tasty, on the other side modern life is so dynamic and eventful, that the food must be fast. So you need to come up with something that will support all these needs. The great solution is Frozen Yogurt. It is a refreshing, savory dessert that combines the flavors and textures of ice cream and sherbet. Frozen yogurt is a new-comer in the dessert market. Nevertheless, “the history of frozen desserts dates back thousands of years to Asia where water ices were first made.’’ (wiki) Yogurt was brought to the U.S. in the early 1900s and steadily increased in popularity as a health food item over the next several decades. By the 1970s, with the popularity of ice cream technology was transferred to the production of frozen yogurt. But it’s entry into the dessert market was a distinct failure—consumers complained that it tasted too much like yogurt. Relaying on consumer demand for a sweet product that tasted like ice cream, TCBY opened its first store in 1981. The highest popularity comes to Fro-yo by the mid 1990s. But in the late 1990s as Americans turned their attention to high-protein, high-fat diets, demand for frozen yogurt slowed considerably. Low-fat foods such as frozen yogurt fell out of favor as food trends preferred higher fat and lower cost ice cream at the turn of the millennium. Trends changed back to frozen yogurt in the mid 2000s with the advent of live probiotic powder-based mixes. Over the last decade the production of frozen yogurt has grown multi-million dollar business with dozens of competing companies.
TCBY has been a frozen treats product innovator from the day its first shop opened in Little Rock, Arkansas in 1981. The great-tasting, low-fat frozen yogurt concept received an enthusiastic response from an increasingly health-conscious public. Its trendy new product propelled the company to the forefront of franchising, and was the ‘first in a long line of ground-breaking menu items that anticipated consumer preferences and continually refreshed the TCBY concept’ (Conlin 2001, p. 133). But TCBY products are just one of the reasons that thousands of operators have concluded that a TCBY franchise is the preferred opportunity in branded frozen treats, and a dynamic partner in any co-branded concept. However, TCBY is facing a lot of problems, both internal and external, during the difficult period from the late 1980s to the early 1990s, especially the problem with its franchising system. The purpose of this report is to provide a comprehensive situation analysis of TCBY, with special reference to its franchising system, and identify several concerned issues of TCBY and its franchisees, and how these issues have negatively affected the relationship between them. Furthermore, this report also provides three recommendations in the attempt to diminish these concerned issues and better maintain the relationship between TCBY and its franchisees, and most importantly, help TCBY to increase the company’s performance and achieve their strategic goals in the next few years.
The fast-casual restaurant is one of the most competitive and fastest growing industries in the world. Chipotle has thought to have reinvented this category and this has led to their explosive growth in the early stages of the company. As it has leveled off, however, one can see where mistakes have been made leading to the sharp decline in their sales and stock. Starbucks has continued to grow, but has also seen declines in their stock. Comparing these companies, one can see how each have went from standalone stores to market leading companies. They must continue to innovate otherwise they will be seen as just another restaurant and no longer see growth.
The fruit juice and health drinks market has, over the past couple of years, seen a massive growth both in terms of sales and of the increasing demographic of customers that are choosing to purchase the products, especially at the expense of carbonated drinks. In 2006 the estimated value of the total market was £2.77 billion at retail selling price, having grown from 30.7% in 2002 (Key Note, 2007). Innocent Drinks are the markets biggest player with a market share of around 62% , selling in excess of 600,000 drinks every week (Barnett, 2005) The business is currently valued at £100 million. Not only content with being the largest distributor of smoothies the business has branched out to start the selling of "thickies" a yoghurt based drink which promises to be a hugely innovative idea and also water based fruit drinks aimed at children.
The Russian Ice Cream market is worth $ 500 million, with Ice Fili as the market leader. The industry concentration, determined by the market share of the four largest firms in a sector is low for Russian ice-cream industry. It indicates that the industry is highly fragmented and competitive. The industry has experienced a low growth rate of ~ 3.5 % for the last two years and the other factors influencing the overall market size, like the population and the per capita consumption of ice cream have been stagnant over the years. The external factors like the shrinking frozen-foods imports market coupled with low entry barriers caused increase in the number of new entrants into the ice-cream market.
Ben and Jerry's Ice Cream is a brand name company known worldwide. With superior marketing techniques Ben and Jerry's has positioned themselves to be the leader in manufacturing premium ice cream products. They have successfully targeted their market, and there by achieved a strong customer base. The mission statement of their product line is "to make, distribute, and sell the finest quality all natural ice cream while incorporating wholesome, natural ingredients and promoting business practices that respect the earth and the environment".(1)
“If, however, changes occurred in the other determinants of demand, we would expect to have a shift in the entire demand curve” (McGuigan, Moyer, and Harris, 2014). Some of the changes that would cause the demand curve to shift right would be increase in the purchaser’s income, decrease in price of the competitor’s product, a wave of consumers looking to switch from high-calorie food to low-calorie food could also shift the demand curve. For the demand curve to shift left factors such as an increase in price of our competitor, a decrease in our customer’s income, or a third competitor entering our
The low-calorie, high-intensity sweetener market has been dominated by one major player, NutraSweet, with annual sales of $711M and about 80% market share (the total market in 1986 was $884M annual sales). NutraSweet, a monopolist in the industry, was able to charge premium prices and successfully capture the majority of the pie. Also, the market was expected to grow 15% annually, with a 70% projected sales growth in Europe and Canada. However, since NutraSweet’s original patents were due to expire soon (Europe/Canada market patent expires in 1987 and US in 1992), a new entrant was threatening to enter the lucrative low-calorie sweetener market – HSC.
Economic research states that the average customer spends $5,000 yearly on groceries and will live in a particular area for 10 years, pro...
Staying in touch with their customers would not enable Ben and Jerry to be as successful as they have become if their ice cream was not high quality as well. The second value the company espouses is to use only wholesome, natural ingredients. They began their operation on this premise, utilizing fresh Vermont milk and cream to create their frozen concoctions. During a period of volatility in the dairy market in 1991, the company went so far as to pay a dairy premium totaling a half million dollars to combat Vermont dairy farmers’ losses. This helped protect the family farmers who supplied the milk for Ben and Jerry’s ice cream.
According to Microeconomics, Price Elasticity of Demand is the responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product’s price (Hubbard & O’Brien, 2015). Demand is considered elastic when the quantity demanded for a product increases or decreases in response to price change. Normally, sales increase with price drops and decrease when prices rise. Coca Cola products are considered to have an elastic demand because quantity demanded for its products often change when prices change. If the price of Coke goes from $1.50 a bottle to $2.00 and the price of a 20 oz. Pepsi remains at or around $1.50
In this paper, I will be talking about the cupcake industry and economic sector. What its current and future growth rate is along with its trends, competitors and finances. In addition, I will touch base on the data that was found for this research paper. I will elaborate on the where, what, why and when to further show my reasoning for using the data.
One method that Toyota can consider is using the price elasticity of demand to determine whether to increase or decrease the sale price of their automobiles. The responsiveness or sensitivity of consumers to a price change is measured by a product's price elasticity of demand (McConnell & Brue, 2004). Market goods can be described as elastic or inelastic goods as change in quantity demanded for that good. If demand is elastic, a decrease in price will increase total revenue. Even though a lower price would generate lower sales revenue per unit, more than enough additional units would be sold to offset lower price (McConnell & Brue, 2004). In a normal market condition, a price increase leads to a decreased demand, and a price decrease leads to increased demand. However, a change in income affecting demand is more complex.
would be focussed on their kids’ needs and upbringing. This consumer target segment is likely to
Marketing Strategies of an Ice Cream Firm Introduction As the Marketing Manager of this ice cream firm, CALMOR, I have. written this report detailing the marketing strategy for the launching. and selling of a new ice cream containing liqueur, as the ice cream liqueur should contain at least 6% alcohol, there are restrictions as. where it can be sold. With a budget of £5 million, I have also. detailed where this budget is to be allocated.