Haagen –Dazs is one of the main Magnum competitors in the ice cream industry. The brand has come a long way since it was created some time back in 1960s by Bronx couple. The founders pioneered the mass market premium category with higher butterfat content and a casual name meant to evoke Danish. The firm is currently owned by General Mills and consumers across the world have made purchases of its products up to $ 2.09 billion by 2015. Cornetto is another competitor whose target customers are children (Salo 34). It is among the world’s top –selling ice cream firms. It is unique in its product packaging as it is paper-wrapped which are coated with crunchy toppings. Magnums closest corporate rival in the market is Nestle. In 2015, the firm …show more content…
Magnum pricing strategy is based on the premium product pricing to attract to attract the consciousness of the customers. The product prestige image and premium price is taken into consideration as the value provided in premium product pricing. Magnum products are priced higher than those of the competitors (Kates 95). Such an approach has an impact on the consumers’ perception of the product. They view the product as a premium one and high price is a reflection of high quality products. Target market is more likely to respond to price reduction as sales increases when the prices are low. High priced products are presented to the urban consumers who prefer high quality products. Such are special items for self-proclaimed foodies. The variation in pricing suggests that the producers are aware of the customers demand at the various levels and they take appropriate measures to address them(Kates 97). They have been keen in making noticeable changes in their portfolio and balanced it with the necessary pricing to garner more …show more content…
The main target for the products is the youth and children which is aimed at increasing sales. The packaging and coloration of its products is a depiction of happiness, smile and satisfaction (Goff & Richard 12). The firm has taken various initiative is to captured the market which has been done in particular stages. Capitalizing on social and the visible media has been launched and proved to have interesting and creative advertisements. Magnum is a leading firm in promotion of the ice cream products. It is vital to launch a serious promotional campaign considering the high level of competition in the global consumer goods market (Goff & Richard 8). Advertisements are the primary means of promoting the magnum ice cream. Many of the magnum ice cream ads are made on the television, online and the media. In regard to the public relation, the Magnum Foundation activities improve corporate image and the brand strength. The firm sometimes implements personal selling in conjunction with retailers in an attempt to operate stalls for certain promotional events. Direct marketing is the least important promotional tactic in the firm’s marketing mix. It involves engaging clients’ organizations to promote the ice cream
Ice cream in Russia is a very profitable business. Profit margins range between 15 and 20 %. This profit can be even greater when creating a premium product. Ice-Fili’s product value lies within raw material acquisition. Since the content of fat applied in the creation of ice cream is higher in Russian ice cream, the product is of better taste quality and unique flavor. With the Russian public placing more alarm on preservatives in edibles rather than fat content, this gives Ice-Fili an advantage over foreign competitors. In fact, Ice-Fili was the only ice cream producer awarded at the 2002 Moscow World Food exhibition for its brand Eralash. To market such prestige could help increase brand loyalty amongst customers. Ice-Fili also enjoys rather favorable brand recognition. The Lakomka brand is hailed as one of three most recognized ice cream brands in Russia....
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)
It contains dissatisfaction that leads to over-consumption. Children are particularly vulnerable to this sort of manipulation, and the American Psychological Association article, “Youth Oriented Advertising” reveals the facts upon the statistics on consumers in the food industry. The relationship that encourages young children to adapt towards food marketing schemes, makes them more vulnerable to other schemes, such as, advertising towards clothing, toys and cars. Article writer of “The relationship between cartoon trade character recognition and attitude toward product category in young children”, Richard Mizerski, discusses a sample that was given to children ages three to six years old, about how advertising affects young children that are attracted to certain objects or products on the market. During this past decade, advertising companies have gone out of their way just to get the new scoop or trend children are into, gathering information and distributing it to other companies.
For durable and luxurious goods when deciding to buy these products, price is one of the most important factors to be considered as the price of these products are high. Therefore, people will compare the price among various shops and purchase from the shore that offers the best deal at the same quality.
For instance, convenience offerings are low-priced goods that consumers can effortlessly acquire because they are relatively ubiquitous while shopping offering requires the consumers’ effort in comparing and contrasting various brands and retail outlet to find the best product at a good price. Besides, while convenience products are needed on a daily basis, shopping goods may not be required on a daily basis and it has a higher price compared to convenience goods. (Tanner & Raymond, 2010). Furthermore, specialty products are different from convenience and shopping offering because it is more expensive from the previous offerings and it is also not commonly sold in retail outlets. The consumers are few and the products are purchased less frequently, which give it a high margin profit. Finally, unsought offerings are different from all because they could be acquired even when it may be unnecessary at the moment. It is a product of circumstance by any
Fast food chains use value pricing. This type of pricing is how much the customer thinks an item on the menu is worth. Basically what this means is customers see price as a primary indicator of a product’s value. Value pricing happens when a company increases a product’s benefits while either maintaining or decreasing the price. A great example of value pricing in McDonald’s is the ability to “super-size” drinks and fries. The value of the drink or fries is increased because a customer can get substantially more of the item for a fraction more of the
Nowadays, it is a consumption society which contains both homogeneity and diversity. As one of the biggest contributor of customer culture changes, advertising is an essential and inevitable element in our daily life which could be visible anywhere and experienced different stages. Early advertisements are generally seemed as “simple, crude and naïve”, while the contemporary advertisements are “persuasive, subtle and intelligent” (McFALL, 2004:3). The early advertise agency just bought some space in media and sold to customers. As the development of advertisement, art design and unique idea were added into advertising, and then it formed advertisement industry. Advertisement industry “adjusted its marketing practices to the novel situation created by consumer culture”. (McFALL, 2004:110) Advertisement is not only an assistor to the increase of consumption economy, but also a contributor to customer culture development. “The contemporary advertising agency did emerge as the result of historical circumstances”. (McFALL, 2004:111) The advertisement industries have more significant impact on marketing and customer which could be interacted with customer’s consumption attitude, value and belief. However, “culture can function like a nature” (Cronin, 2000:145). A slogan called “I shop therefore I am” which came from Barbara Kruger was famous in recent years. She argues that every purchasing behavior could be seemed as a reflection of customer’s aesthetic attitude, consumption taste and buying habit (I Shop, therefore I Am, 2000). In this article, a topic of the reflection and interaction between advertising and modern consumer culture would be analyzed, including the necessity, representation and semiotic meaning. This essay has three m...
A fast food restaurant will have to have a good pricing strategy in order to ensure that competition does not push the firm out of business. This will ensure the restaurant remains competitive. For effective management of cash inflows, the management will require to create an environment whereby each item has been priced conspicuously and reflecting the cost of bringing the same to the table as well as the profit margins targeted by the restaurant (Mark 1998).
The goods and services provided by each seller are differentiated by cuisine, skill, ingredients used and more. Each seller sets their prices according to their production costs with little regard for other competitors. There is high access to information, such as prices, menus and reviews, but limited by the fact that the value can only be determined after the experience.
Once the product is accepted the organisation would experience a high growth rate. For example, PAX Yogurt Company which originates on Mount St. Benedict, is a local company which developed seven different flavours of yogurt into the market, they are: almond, guava, passion fruit, pineapple, soursop, strawberry, natural (plain) and vanilla. The primary objective was to meet the customers’ needs with a good quality product at an affordable price in order to return high sales and profitability for the company. It is imperative at this stage, that particular attention should be placed on creating strategies for pricing, place or distribution and promotion so as to establish a market presence and create a suitable demand for the product. Pricing strategies include price skimming and price penetration. It is advisable at this stage to employ the price skimming strategy for example, pricing the product at the highest point possible. Prices can then be lowered when demand starts to
Price is said to be the biggest factor in the marketing mix. If the price is not right, then the product will not sell. Consumers feel that they have to get something back, such as an intrinsic value from the products. Pricing is affixed with many different variables such as the flexibility of price, geographic term, discounts and price levels over the product cycle. A marketing manager must also consider what type of pricing objective to use. For this paper, I have made myself the new marketing manager of Foster Farms Poultry Products.
ice cream belonging to the premium category. Based on our analysis, we have identified two major
Hennes & Mauritz AB (H&M) is a well-known fashion retailing firm that sells fast-fashion clothing for women and youngsters. It is based in Stockholm, Sweden. As of 2013, H&M operates around 2,600 stores in over 55 countries and employed around 116,000 work forces.
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.
Brand offers superior quality of the service to the customer’s expectation and satisfaction. Furthermore, people are much attached to the branded products, as majority of the people purchase the branded products with the belief that brands show their status and life style in the society. And also because they believe that they are purchasing quality when purchasing branded product. As duration of stay creates impact of brand on consumer behaviour, so verification of brand image, brand loyalty and personality should be considered as the significant factors in this regard. It can also be said that there is need to improve the product of a particular brand so that the impact of brand on consumer behaviour is more effective in comparison to the existing scenario. The study also reflects that the product features are very essential for consumers. Advertising plays a very important role in achieving growth for any product or brand. The right media for advertising products and services should be chosen to gain customer attention.