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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 would contain at least 6% alcohol, there are restrictions as
to where it can be sold. With a budget of £5 million, I have also
detailed where this budget is to be allocated. Located within the
Appendix are the mind maps and action plans that I have produced to
help me follow the principles of marketing in investigating,
launching, and selling liqueur ice creams.
Marketing and marketing research affects the choice of the marketing
strategy used because it is the results that the marketing research
has produced that will guide me as to what is the best ways in which
to get the product onto and made a success of in the marketplace. Also
so that we can ascertain the best marketing mix that would apply to
the product to be launched.
C1 The Marketing Strategy requires Research to find out:
· Customer Requirements – Is there a market for liqueur ice creams?
· The Right Products to Develop to Meet Customer Needs – Which
liqueurs would the consumer’s prefer/buy the most? Which product
variation is preferred?
· How to Position the Product in Relation to Other Products – Where to
· The Right Marketing Mix – Is the product right?, Is it sold in the
right places?, At the right price?, Is the product promoted in the
right places to get maximum exposure to potential customers?
This would also include the suitability of the marketing and launching
of the product. The acceptability of the product, whether the risk of
launching this product is acceptable to the company. The feasibility
of whether the product will work within the existing ice cream market.
In order to successfully launch and market this product, primary and
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relied upon to find out all of the above points. The secondary
research will be any relevant research that uses existing sources of
information, internal and external factors that will influence how,
where, and any restrictions there may be on the launching and selling
of this product. This would include looking at the marketing models of
P.E.S.T.L. and S.W.O.T.
Decisions have to be made as to how, where, when, and who to launch
this product to. The objectives within this report are therefore
· Achievable-The aim of getting the product onto the market and
recognised and eventually profitable
· Understandable-The aim of getting all involved in the project, to
know what is expected of them and how.
· Challenging-The aim of getting the product recognised after launch
· Measurable-If the product has not achieved its challenge, the
adjustments that are made to ensure that it will reach it.
Good Marketing research will give me sufficient information to make
marketing strategic decisions. It should not be a ‘one-off’
occurrence, which takes place as part of a new product development but
continuously on going so that information is collected and analysed
for future planning and decision-making purposes.
The budget that was allocated to conduct the marketing research was
£500,000. Part of the primary Marketing Research that has been
conducted is a questionnaire that I have compiled to find out if there
would be a market for this product. The questionnaires were asked of
customers and staff within Sainsbury’s, South Ruislip, Middlesex. (To
validate the questionnaires, only people over 18 were asked of their
opinions). All copies of the questionnaires can be found within
section C2a. As this is a college assignment only 30 were compiled and
completed, if this were a real situation then at least two thousand
would be required to get a good knowledge of public opinion across the
U.K. To successfully evaluate the results of the questionnaires, each
one has been read through and the answers noted and all of the
questionnaires have been tallied.
Questionnaires were also devised to be asked of the
managers/proprietors of licensed premises to obtain their opinions of
the sale-ability of this product.
The summary of the research is that Bailey’s liqueur is the most
popular, the pack of individual portions was preferred to the lolly,
and the most desired place to purchase the product was in
supermarkets. The most popular price for the lolly was £1.30, and for
the pack of four individual portions was between £2.50-£3.00. There
would also be a market for liqueur ice cream within restaurants and
public houses. For the advertising aspect The Mirror, ITV, Channel
Four and the basic Sky channels would be the best to advertise within.
The most popular programme watched by the respondents was Friends.
There were the magazines that were bought the most often by
respondents. The most popular magazines were, four magazines all of
which are aimed at women- Elle, Woman’s Own, Glamour and Take A Break.
Therefore the conclusion of the primary research is that there would
be a market for this product, sold within the supermarkets as a pack
of four individual portions, and at a price that is cost effective for
the ice cream portions. The advertising on the Television channels
would be most beneficial if it was done during the evening time.
Magazines and The Mirror newspaper would be good sources to advertise
The managers/proprietors views were mixed; some thought this product
would sell, whereas others thought that it would not.
The secondary research that has been conducted is of the different
areas involved within marketing. The rival ice cream manufacturers,
their products and where they are sold. What liqueur flavours were
available to purchase. Trends and growth within the ice cream industry
was also researched into. The Duty that is paid on alcohol. The
advertising rates of the different aspects of promotion that are going
to be used. The current Bank of England interest and general mortgage
rates. The restrictions’ are concerning the licensing laws.
The results of this questionnaire are as follows:
50% of those asked were aged 18-30
13% were aged 31-45
25% were aged 46-60
12% were aged 60+
From the 5th question ‘What is your most favourite liqueur?’ The
liqueur that got answered the most was Baileys; the next was Tia
The 6th question was ‘What is you second favourite liqueur?’ The
liqueur that got the most replies was Tia Maria; the runner up was
The conclusion from these two questions is that Baileys is the most
popular liqueur and Tia Maria is the second favourite. Therefore the
liqueur flavour that would most likely sell the best would be Baileys,
and if another flavour were to be considered then Tia Maria should be
launched, and then Cointreau.
Although most people preferred the idea of individual portions (58%);
the most popular pack size was four, still 42% of respondents said
they would prefer to purchase the lolly. None of those asked put six
as their preferred size of the pack. As question 11 (‘What price would
you be willing to pay for the lolly?’) was an open-ended question, and
required the respondents to put their own views of the price that they
would be willing to pay, I have taken the mean price and this has
worked out to be £1.30 per lolly. This price although the most popular
is not cost effective. A cost effective minimum price that should be
charged is £1.99.
The price most preferred by 40% of respondents for a pack of four
individual portions was between £2.50-£3.00, although this price is
also the most popular it is not a cost effective price
Whereas only 23% preferred between £3.00-£4.00 as the price they would
be willing to pay, this price would be a more effective price.
The most popular place to purchase the lolly was within the
supermarket, with nearly 70% of respondents preferring it. Next
popular was local licensed shops with 20% then Off-licenses with 11%
The most popular place to purchase the pack of individual portions was
in the supermarkets with a massive 94% of respondents preferring here
to only 3% preferring the Off-license or the Local licensed shop.
Question 16, was ‘What television channels do you watch the most? Tick
all that apply’
The television channels that were watched the most were ITV with 59%
and Channel Four also with 59%. This tells us that most advertising
that is wanted to be done on television should be done on these two
channels. As questions 17 and 18, are about the receiving of sky and
cable channels these should also be considered as very possible
avenues of advertising, although these television packages vary a lot,
56% of respondents still have access to them.
To find out the best possible time in which to advertise, the
respondents were asked what their favourite programmes were. This is
so that adverts could be placed within the commercial breaks of these
programmes to get the best possible audiences. The responses were very
varied, from soaps to cartoons (The Simpsons) and Murder Mysteries to
car programmes, although the most popular programme was Friends with
27%, Sex in the City came a close second with 20%.
The most popular newspaper bought by respondents was The Mirror; this
had 33% of answers. Although there were four magazines that were the
most popular, nineteen different magazines were bought by the
respondents and because of the high number of magazines that the
respondents buy; many of these would be optional advertising tools.
All of the most popular bought magazines each had 13% of the replies,
the magazines were Take A Break, (which is a competition based women’s
magazine). Glamour, Elle and Woman’s Own (which are women’s fashion
The results of the questionnaires asked of the manager/proprietors is
mixed, this is because some did not think that this product would sell
very well. This would be a geo-demographic aspect as the
questionnaires were asked within a small area within Middlesex.
Although the best selling liqueur, within these premises does
correspond with the favourite liqueur of the respondents.
The secondary information retrieved has told me what products are
already available and if there are any existing liqueur ice creams
(only available in America, it is called Blend’s). There are some
luxurious ice creams available in many different flavours, but none
with the same amount of alcohol content as this product, this tells me
that this product has a good chance of selling as there is no other
like it already on the market. The competitors Websites were used to
gain information about their products, some research into what
products were available was conducted by going into some supermarkets
and shops and visually seeing what products were available on their
shelves within the freezers. I have included a list of products within
my Appendix, (Evidence that I have done this). Trends and growth
within the ice cream industry was also researched into.
A list of available liqueurs was obtained so that when I conducted the
questionnaires the respondents could be told and shown what liqueurs
are available on the market. Information was obtained from the
Advertising Association of UK Expenditure and costs to ascertain what
these were. Also information from some of the relevant places of the
media, that would be used to promote the product.
Reliability of Research
The primary research that has been conducted is reliable in regards to
the reasonable knowledge of liqueurs that the respondents had, only
those who drank liqueurs more than once or twice every six months were
asked to complete the questionnaires. Although some aspects of the
questionnaires may be unreliable as some respondents may make up the
answers that they have put.
The questionnaires were reliable in the aspect of demographic
segmentation as it was asked only of respondents over the age of
eighteen. The main groups that this product would be aimed at are the
young professionals and housewives, so the demographic segmentation is
not very reliable as most respondents from my questionnaires were aged
between 18-30 and some did not fall within these two groups. The
reliability of the geo-demographic segmentation is questionable as the
questionnaires were only asked of a small number of people within one
supermarket in Middlesex. The opinions of these people may differ from
the opinions of the population as a whole.
The reliability of the questionnaires that were asked of the
manager/proprietors of licensed premises would be more reliable. The
information that these respondents have given would tell me whether
this product would sell well within their shops, as they know what ice
creams and liqueurs are already the best sellers and because their
answers are based on actual statistics relating to the sales within
their premises. The replies that these respondents gave regarding the
best selling liqueurs within their premises would be the equivalent of
asking hundreds more people what their favourite liqueur is. Although
they are slightly unreliable in the aspect of geo-demographic, as the
questionnaires were only asked of a number within a small area of
The information about the Advertising Standards Codes is reliable
because the website is an official website (www.asa.co.uk) that is
publishing the Codes and Practices adhered to by advertising Agencies
nationwide. The information obtained about the advertising rates that
were relevant to the aspects of promotion to be used would be very
reliable, as these rates are what are being charged for
advertisements. The laws that have to be adhered to when selling this
product were also researched; these were obtained from a government
website. (www.culture.gov.uk/alcohol). This information is very
reliable, as this is a government website about the laws of alcohol
The research into the rival firms that was also retrieved from the
Internet would be questionable because the competitors are not obliged
to submit any information about their activities or products. Whereas
the research that I conducted by going into the supermarkets and shops
to see what types of products were for purchase, is reliable as this
is what is available and the public are willing to buy. The list of
available liqueurs was retrieved from the Internet (This is included
within the Appendix). This is reliable as the website I retrieved it
from sell these products and have a list of liqueurs that are
currently available to purchase.
Validity of the Market Research
The primary research of the questionnaires asked of the staff and
customers of Sainsbury’s is valid as only respondents aged over the
age of eighteen with a reasonable knowledge of liqueurs (those who
drank liqueurs more than once or twice every six months) were asked to
fill in the questionnaires. The questionnaires were carefully devised
and thought out to make sure that all the aspects of the strategy were
covered. So that all the answers that were received were relevant, the
questions needed to ask the preferences of the respondents. To
ascertain the best possible areas in which to sell, launch and
advertise this product.
The questionnaires that were filled by the managers/proprietors are
valid because their answers are based on actual statistics relating to
the sales within their premises; this would show actual tastes and
preferences of customers within the immediate area. Also their
opinions of whether this product would sell. These were valid, as they
would know if a luxury ice cream liqueur would appeal to their
consumers. Although the opinions of the managers/proprietors are
valid, it is constrained in the fact that they are only on what the
trends are within their own small area.
The research into the competitor products that entailed going into the
shops to see what was available, was valid because it is what I saw
with my own eyes as to what was being sold, and the dates on which the
information was retrieved from the Websites is shown. Some of the
information I retrieved about the established company in America
(Blends) was published in the Business Journal on 10th December 2001.
Although this information is two years old it is still valid as the
company are still in operation, and this report was about the launch
of the product.
The list of liqueurs is valid as it was retrieved from a website that
is selling these products and is up-to-date; it was last up-dated 1st
January 2003. The data that was retrieved about the trends and growth
in the ice cream industry is valid, as it is up-to-date; the
information was published on 29th May 2003. It was retrieved from a
website called www.euromonitor.com.
All of the information has the dates of when I retrieved them on the
bottom of the page.
Evidence of Research Information
The evidence of the research information is all included within the
following pages. This includes all the copies of both of the
questionnaires that I devised and conducted. Also the secondary
information that I retrieved, including a list of liqueurs, the
research conducted into the competition within the ice cream industry
and the trends and growth within the industry.
External and Internal Influences
The external influences that would affect the viability of the liqueur
ice cream would be the marketing model of P.E.S.T.L.
Political influence – There are no political influences affecting the
viability of this product (e.g. A ban on alcohol, change of
Economic influence – This is how good or bad the economy growth and
prosperity within the U.K. are influencing the sale of the liqueur ice
The figures from the government on the state of the economy, interest
rates and the unemployment figures were researched and evaluated to
see whether it would affect the sales of liqueur ice cream. The facts
and figures regarding the state of the economy was to ascertain
whether there is a prosperous enough economy to uphold the sales of
this product. The interest rates and the unemployment figures were
obtained to ascertain whether the public would have the disposable
income to be able to purchase this product.
The inflation rate is at an all time low and the economy is predicted
to continue to be prosperous well into 2004. The unemployment figures
show that these have been steadily falling since August 2003. This
shows that there is high employment and the disposable incomes of the
public are high and all the figures show that therefore a luxurious
liqueur ice cream should not have any problems selling. Excise duty is
another influence. This would affect the price that the product would
be sold at. At the moment the duty that is paid per litre of alcoholic
spirits is £19.56. Graphs to show these figures are all within C2b.
Social influence – This is the influences of society, changes to the
environment and lifestyles. The biggest influence would be the risk of
children obtaining this product, to overcome this problem several
factors must be put into place, this would include:
A constant stress that this product is only for adults (over
The advertisements would also need to stress this fact
Vigilance by staff of licensed premises (although not always reliable)
The packaging should be labelled that the product should only be sold
to over eighteen’s because of the alcohol content (6%)
Till scanning would be implemented in those premises that have it
installed (Till scanning is a reminder to staff to obtain I.D. from
The changes to the environment do not have a direct influence to the
marketing of this product. The changes to lifestyles would influence
this product only if it was a national drastic change.
Technological influence – The technological influences would be the
knowledge of how the process of liqueur ice cream is done, and within
the manufacturing and distribution logistical areas. As we are an
already fully established manufacturer and distributor the technology
required for these methods are already in place and therefore are not
Legal influence - The laws of the land affect the Marketing Strategy,
in this case the licensing laws governing the places that the product
can be sold and when. Only licensed premises can sell this product
because of the alcohol content, and at only specified times. These
times are: Monday – Saturday between the hours of 11am to 11pm
The excise duty that is required by law to be paid on alcohol will
influence the price that will be set. Also the Value Added Tax (VAT)
is another legal influence that has to be addressed.
The internal influences and some external influences that would affect
the viability of liqueur ice cream would be the marketing model of
Strengths influence – This is an internal influence; this would be the
business strengths. These are:
· Have an already established good reputation
· Good portfolio of established products
· Established efficient manufacturing and distribution premises
· Good relationship with established customers
· Good management and staff
· Resources available for new venture
Weaknesses influence – This is an internal influence; this would be
the business weaknesses. These are:
· No experience in alcohol industry
· Deals in limited market
Opportunities influence – This is an external influence; this would be
opportunities made outside of the business. These are:
· Totally new product within UK, new market opportunities
· First on the market with this type of product
· Development of further varieties
Threats influence – This is an external influence; this would be any
threats made to the business. These are:
· The competition from rival ice cream companies within the United
· Recession leading to poor demand in the economy
· Competition from foreign companies (Blends)
Evidence of Research Information
The Evidence of the research done on the internal and external
influences is included in the next few pages. This includes the
research conducted into the economy, inflation rates, interest rates,
unemployment figures, Excise duty, and legal constraints.
Validity of research into external and internal influences
The secondary research information regarding the state of the economy
and employment figures was retrieved of the Internet from the
government’s Website; this would be to ascertain its reliability and
ensures it is up to date as the date of issue written on them. (The
evidence of these documents can be found within C2b)
To ensure the figures for the state of the economy, and unemployment
figures are valid as they were retrieved directly from the
government’s own website, the dates of this information is recent and
up-to-date. The information was all received and compiled for the
website between the 6th and 15th of October 2003.
The figures that were retrieved about the interest rates were obtained
from The Bank of England Website, these figures are valid, as it is
the Bank of England that sets the rates and they are up-to-date. The
last entry being October 2003.
The research that was retrieved about the laws governing the times and
places that alcoholic substances can be sold was obtained from a
government website. This information is valid as these laws have been
implemented since 1964 and have been recently reviewed (Licensing Act
2003). The information that was retrieved about the excise and duty is
reliable as it came from The HM Customs and Excise website.
The Marketing Mix
The marketing mix (4p’s) that would be used to launch and run the
project has been dictated by the results of the questionnaires and
would entail the following;
All outlets to be informed of product launch by Easter, Aim to have
product recognition one month after launch, and 500,000 products to be
sold nation-wide within six months of launch date.
The Launch date should be set for the end of May, to coincide with the
start of good weather (hopefully the British summer will oblige).
Distribution of the product should be completed to all outlets by the
The product that should be made and launched is the Bailey flavoured
liqueur ice cream, (if a second flavour were to be launched at the
same time or in the future then the Tia Maria flavour should be done).
The branding that the product would have is the company brand name, as
it is already an established and trusted name. The packaging and
labelling should have the feel of luxury and also have a warning that
only over eighteen’s may purchase the product.
The price to be charged for the lolly that would be cost effective and
reasonable would be £1.99. As the product closest to this product that
is already in the market, is the magnum (by walls), and is priced at
between £1.10-£1.40, this price should be satisfactory.
The price that should be charged for the pack of four individual
portions should be £3.99. The products that are closest to this that
are already established and popular products are Vienetta and Carte D’
The main places that should stock this product (both the lolly and the
pack of portions) should be all the supermarkets. The local licensed
shops should also be considered, as this was a popular place of
purchase for the lolly. According to the results of the questionnaires
there would also be a market for this product within restaurants. Also
within this ‘P’, is the factor of the distribution and direct
marketing. The distribution is the way in which the product will reach
the market; in this case it will be through the use of our own fully
With the Direct marketing the best methods of communication would be
Direct mail-This would be used to alert established customers of the
new product arriving on the market. (Promotional Literature)
Exhibitions-The best exhibitions that should be used are Trade shows,
Ice cream conventions and The BBC Good Food Show and The Ideal Home
Exhibition. Through all of these a stand should be set up and display
all of the products available. I have allocated £175,000 to enable
this to be carried out.
The promotion and advertising should be conducted at the same time as
the launch of the product. This should include advertising on
television and radio, within magazines and newspapers. As an
established company, it is to be the potential customers that should
be targeted, rather than the retailers.
The budget for the rest of the advertising is £4.3 million. The
advertising rates that I have followed were obtained from the
website-www.adassoc.org.uk/inform/in6.html. These rates are typical of
2001. Also rates were researched and obtained from the appropriate
company’s website and all of the documents can be found within C2c.
This is to be distributed within the following areas;
Television advertising-The most popular times to advertise would be
within Friends and Sex in the City on Channel Four, and within the
programmes of Coronation Street, Inspector Frost and between the times
of Eight-nine p.m. on ITV.
Newspaper advertising- The Mirror was the most popular newspaper
according to the results of the questionnaires. The Guardian was also
selected as it is mainly bought by the same sort of substantial
segmentation that our product is aimed at.
Magazine advertising-Television magazines and women’s magazines have a
great deal of potential customers as their readers include the
demographic and psycographic groups that this product would appeal to.
Radio advertising-Cheaper than television, but still have a wide
variety of potential customers as listeners.
If this were a real situation then I would be able to bargain with the
advertising media to obtain a reduced rate for all of the advertising
that I would be buying. As this is an assignment I have to rely on
some out of date rates and therefore my advertising costs are not
entirely accurate because of this. On the next page I have laid out a
table illustrating an Eight-week advertising campaign that I would use
to promote this product.
As the advertising campaign has cost me £4,499,968 I am left with a
remainder of £32.
Evidence of Research Relating to My Marketing Mix
Within the following pages is the evidence of the research that I have
conducted that is relevant to my marketing mix. This was information
about what the Advertising Association rules and regulations are, and
all of the advertising rates that were used.
Reliability of the Marketing Mix
The different components of the marketing mix are based on the results
of my questionnaires. As only a small number were devised, (30), they
are only the preferences of a small number of people within a small
geo-demographic area. The reliability of all of my marketing mix is
questionable because of this, although some of the following aspects
The reliability of the Product is reliable, as the flavour liqueur
that I chose was the most popular with both the respondents and
The Reliability of the Price that I have chosen is reliable. As the
closest lolly product to our product is priced at between £1.10-£1.40,
the price that I have chosen of £1.99 had to be cost effective and
reasonable to take into account the extra costs that the alcohol
content would incur. The ice cream products that are closest to our
individual portions product are the Vienetta and Carte D’or. As the
price for the Vienetta stands at between £1.50-£2.00, and the price
for the various Carte D’or flavours stands at between £1.79-£2.79, the
price that I have chosen that is cost effective is £3.99.
The reliability of the Places that the product would be sold in is
reliable but restricted because these premises must be licensed and
laws need to be adhered to.
The reliability of the Promotion that has been used is questionable
because this was decided upon after evaluating the answers obtained
from the questionnaires that were devised. Although some of the
promotion that I have used was decided upon because of the social
class that the material was aimed at.
The information that I obtained regarding the UK Advertising
Expenditure and costs is valid and reliable as it was taken from the
Advertising Association website (www.adassoc.org.uk). This information
was last updated in August 2003. Although some of the figures that I
have used as a basis for the costs that would be incurred when
advertising, are based on the 2001 rates. This makes these figures a
little bit out of date and unreliable. If this were a real situation
these figures would be made available to me when I had decided what
level of advertising I wanted. The figures that I retrieved from the
actual Websites of the different aspects of the media that I decided
to use are very reliable, As these figures would be the ones available
to potential customers of these companies the figures must be kept
up-to-date. Although if this were a real situation then bargaining
would be used to obtain a better deal because of the amount of
advertising that would be bought.
The Links between Internal and External Influences and The Marketing
The links between the internal and external influences that I have
discovered and my marketing mix are the marketing model of P.E.S.T.L.
The first link is the Political influence and whether this affects any
aspect of launching and selling the liqueur ice cream. There are no
political influences with this product.
The link between the marketing mix and the Economic influence is
whether the economy would be able to sustain and be strong enough for
this product to be viable. This would also be an influence on the
price that would be charged; if the economy is in a recession or
slumps then this type of product would not make enough sales for it to
The Social influence links with the places that the product are to be
sold and to ensure that minors would not be able to purchase the
product. Also whether the product would be accepted by society through
the promotional activities. This is also an influence with the type of
promotional advertising that should be conducted, Society has
unwritten rules that apply to advertisements. Careful design is
needed, if there are a lot of complaints concerning the advertisements
then the Advertising Standards Authority will withdraw the
The technological influence link with the product itself and whether
the technology is in place to sustain the product through the
manufacturing and storage of the product.
The legal influence also links with the constraints on the places and
times that the product can be sold. Only licensed premises can sell
this product and within certain times, the laws about this are very
tight and there are penalties for proprietors if they are discovered
to be flaunting them. There is also a link with the Price, as the
legal laws of paying VAT on alcohol must be adhered to.
The internal influences that would be considered with the marketing
mix are how the company will cope with the launch of this new product.
These would include:
Production- This is whether the company has the machinery and
knowledge already in place for the production of this product
Promotion- This is whether the company have the funds in reserve to be
able to sustain a full and detailed promotional package.
Distribution- This is whether the company has the logistical knowledge
and effective resources available.
Packaging- This combined with the branding will differentiate the
product. The packaging will need to be designed and made. Therefore
the resources need to be available to be able to do this.
Finance- The finance is probably the most important aspect of the
internal influences; this must be available before any other aspects
of the marketing have been conducted. The company needs to be
financially secure to launch a new product, as it is very expensive to
do so. Long financial planning is crucial to be able to sustain the
costs that are incurred during the marketing.
Explanation of how the 4p’s are linked to the information I have
The information discovered within my marketing research has linked to
the decisions decided upon within the 4p’s. These are addressed in the
Product- The research showed that the most popular flavour liqueur
preferred by the respondents was Baileys, the most popular selling
liqueur that the managers/proprietors reported was also Baileys. The
second popular liqueur according to both respondents and
managers/proprietors was Tia Maria.
Therefore the link is that these results have influenced the decision
of which flavour liqueur ice cream should be produced and marketed.
Baileys should be the first and when a second flavour would be
considered to market Tia Maria would be the best one.
Price- This is linked to the price decided upon to sell the products.
The price most favoured within the marketing research for the lolly
was £1.30, as the price charged for our closest competitor is between
£1.10-£1.50, our most popular price was ignored because it was not
The price that the research showed was the most popular for the
individual portions was between £2.50-£3.00. This price was also not
cost effective. The price that is charged for our closest competitor
to this product is between £1.50-£2.79. Other reasons that influenced
the decisions to ignore the most popular prices were that in order to
be viable all round, the price must be higher, this would be to take
into account the higher costs that would be incurred because of the
alcohol content. Also as this product is to be marketed as a luxurious
product then it would need to have a price to reflect this. (If a
product has a high price then it is seen to be high quality).
Place- The research showed that the most popular place the respondents
would purchase both products was within the supermarkets. As these
places are already license holders and we have to comply with the
licensing laws with this product, this is not a problem. Therefore the
link of the information discovered through the market research to the
p of the place in which to sell this product, is the decision to place
these products within the supermarkets.
Promotion- The research showed that the most popular places in which
to promote this product were within the television programmes of
Friends, Coronation Street, Sex in the City, Inspector Frost and
between the hours of eight and nine at night. The newspapers of The
Daily Mirror and The Guardian. The magazines of Elle, Take A Break,
Woman’s Own and Glamour. These results are linked to the decision of
what forms of promotion that I decided to undertake. Although because
there were so few questionnaires asked of respondents these most
popular aspects may not be valid.
PRINCIPLES OF MARKETING
Understanding Customer Needs
The principles of marketing have been used within my strategy by
understanding the customer needs through the primary research that has
been conducted. This has been through the questionnaires that I have
devised and filled. The questionnaires have been aimed at the general
public and the managers/proprietors of licensed premises. The
questionnaires that I have devised include questions to ascertain the
age structure of the population (although because this product
contains alcohol, it is only applicable to over 18’s). Their tastes
and preferences of liqueurs, what types of media they watch,
advertising they see, their yearly income, where they are likely to
purchase the product and the price they would be prepared to pay.
All of which are included within the Appendix. Customer behaviour is
also included within the secondary research conducted into the trends
within the ice cream industry.
If more time and manpower were available then the research that I
would like to do would involve setting up some focus groups and panels
to get their opinions of this new product. I would also like to obtain
some samples and conduct some field trials and pilots.
Keeping Ahead of The Competition
The research that I have done to understand and keep ahead of the
competition is to look at the other luxurious ice creams that are on
the market, and the price at which they are sold. This `is the
secondary research that has been conducted into the competitor
activities and products, sales trends for existing products and
product substitution. As there is a product of this type available in
the United States of America I have looked into their website to
ascertain what this product entails (evidence of which is included
within the Appendix).
Market research companies should also be explored, this would be to
get information that has already been conducted about the different
types of ice cream that consumers buy and rival companies manufacture
and sell. This is expensive and in a real situation this type of
research is very useful, but because of this being an assignment the
funds required for the information are not available to me.
As there are no luxurious liqueur ice creams available within the UK,
this would give an advantage over rival ice cream companies. Another
contribution to long-term success of this product would be the
quality; this would give the product an overall edge.
The on going activities that would need to be conducted were this
product marketed would be to continuously advertise and promote the
product, conduct surveys (maybe included within the packaging of the
product), to continuously research rival companies and their products
The marketing orientation should be based on customer needs and
quality of the product.
Effective Communication With Customers
The communication is all the different types of advertising and
promotion that will be conducted.
The Marketing Research that I have done so that I can effectively
communicate with the customers was included within the questionnaires
that were compiled. This was in the form of questions on the different
types of media and advertising within the media that were the most
watched, listened to, and read. Also secondary research into the most
listened to radio station.
All of the advertising and promotion I have chosen to use are as a
result of the questionnaires conducted. So I am using the media and
programmes that are most often seen read, and heard by our
Co-ordinating Marketing Functions to Achieve Aims
We have planned to efficiently co-ordinate the marketing functions to
achieve our marketing aims to fill the gap in the market with liqueur
ice creams. The primary aim being to ensure those potential customers
will buy the product.
We will ensure that at the time of the launch of this product,
manufacturing will have produced enough of this product to maintain
supplies to meet demand. Distribution will get the product to all our
designated retailers. Advertising will have their campaign ready for
the launch date. Finance will be up and running with the costs that
have been accrued before product launch and to back any unforeseen
costs that may occur. On going research will coincide with the launch
date and be constantly analysed. Further products, if they are to be
considered, should be starting the process of production by launch
Constraints on Marketing Activities
The constraints that the marketing will come up against are internal
and external. The internal constraints are strengths and weaknesses
within the company; the strengths that are already in place are a
major fact on whether the company can sustain the financial and labour
costs that the launch of a new product will entail. As we are an
established company we do have the resources available to do just
this. The weaknesses within the company that I have come up against
are the limited knowledge of alcoholic products, but because of this
product being a completely new product being introduced into this
country, then this can be overcome. Other internal constraints include
the limitations within the market in which this product would be sold
(The limits within the ice cream market).
The external constraints that the product would come up against would
include the marketing model of P.E.S.T.L. This external information
that I have retrieved has influenced my decisions on where the product
can be launched, how and if it would be a good saleable product. These
would include the constraints that are placed upon the places of
retail, the technology needed, the economic and monetary situation of
the country and within the advertising campaign, with compliance to
the advertising codes. All of these aspects must comply with the laws
and codes that are in place.
An Evaluation of The Likely Success of My Plan
The likely success of my marketing plan working would be dependent on
the facts that were ascertained within the initial market research. As
I have ensured that my initial primary and secondary market research
were conducted properly and fully, this has given me a good sound
basis on which to continue. The questionnaires within my primary
research, asked questions that detailed all that was needed to know
about the customer’s tastes and preferences. This gave me a good
knowledge of what the 4p’s should be. The best liqueur flavour ice
cream to market. Also the best places in which to sell this product
and the best promotions and advertising in which to do, and also what
the best cost effective price to sell this product at.
The secondary research gave me a substantial knowledge of what
competitor products were good sellers, and whether there are any
existing products like this on the market. As there are none like this
product, the likelihood of this product being a success within the
luxury ice cream market are fairly good.
The secondary research of the marketing models also told me about the
state of the economy, interest rates, the trends of the ice cream
industry and the unemployment figures, as these are favourable and the
disposable incomes of the population are high, a luxurious product
would sell well. The laws that surround the retail of alcoholic
products, the advertising rates that are from the sources of promotion
that are to be used, available liqueur flavours, the advertising codes
that need to be adhered to, any internal constraints that would
conflict with the marketing of this product. These were also
researched and evaluated so that we could ensure that as many avenues
as possible were covered and no mishaps would arise with the marketing
of this product.
To be able to sustain this product once on the market we would need to
look at the Boston and Ansoff Matrix. These examine the life cycles
that a product goes through, the market developments and
opportunities. As the markets and their structures are changing all
the time, the different phases help us to identify any changes that
may be needed to the marketing mix.
The Boston Matrix developed by The Boston Group identifies four types
of products in an organisation portfolio. These are:
Problem Children- These are related to products that have just been
launched. Such products are often referred to as Question Marks, as
many fail to move beyond this first phase.
Stars- These are products that have successfully reached the growth
stage. These products require large financial support, but will also
provide high cash returns.
Cash Cows- These are products that have reached the maturity stage and
are known as ‘yielders’. They have a high market share in stable
markets. They provide a positive cash flow but only require few fresh
injections of capital.
Dogs- These are products in decline. They have a low market share
within a declining market
The Boston Matrix
** * STARS * **
** * ** *
(Question Marks) ??????
As we are launching a new product, we have a problem child, we want
the product to turn into a star and then a cash cow, and stay level at
The Ansoff Matrix developed by Igor Ansoff suggests five alternative
marketing strategies that hinge on whether the product is new or
existing and whether the market is new or existing. These strategies
Consolidation- This implies a positive and active defence of existing
products in existing markets.
Market Penetration- This is a further penetration of existing markets
with existing products. This involves a strategy of increasing market
share within existing segments and markets.
Product Development- This is the development of new products for
Market Development- This is using existing products and discovering
new markets for them. Better targeting, market research and further
segmentation will identify these markets.
Diversification- This will lead to a move away from core activities. A
totally different venture to what the company normally does.
The Ansoff Matrix
Our product will use the Product Development aspect of the Ansoff
Matrix, as it is a new product being introduced into an existing
Summary of Marketing Strategy
To summarise my whole marketing Strategy, research was carried out and
the results were analysed so that I could then ascertain what the best
way would be in which to apply these results to successfully launch
and promote this product.
Firstly the primary research was conducted. This was the division of
questions relevant to the product that we are marketing. Within the
questionnaires were questions to ascertain the Customer Requirements,
the questions asked whether there actually would be a market for the
product that we are proposing to launch.
Questions were also needed to find out what The Right Product to
Develop to Meet Customer Needs would be. These questions were about
the tastes and preferences of consumers with what liqueur flavours,
and the different aspects of the media (television, radio, magazines
and newspapers) that were preferred.
The Right Marketing Mix was ascertained from finding out the
preference of places of purchase, price and the product itself that
appealed to the respondents. Also the best areas in which to promote
this product, which were discovered from the questionnaires. The
answers from all of the questionnaires were noted and I related them
to the 4p’s that I used.
The secondary research that I conducted was to find out about How to
Position the Product in Relation to Other Products, this included
looking at what the other products were that are already established
on the market, and the trends within the ice cream industry.
The advertising rates, The advertising Codes that need to be observed
and The available liqueur flavours all needed to be investigated and
analysed. The marketing model of P.E.S.T.L., (Any political aspects
that would apply to this product, the state of the economy, interest
rates, unemployment figures, Any rules of society written or
unwritten, that need to be observed, Technological constraints and The
laws that have to be adhered to when retailing alcoholic products) was
researched into to ascertain any aspects that would deter this product
from being sold or promoted. The marketing model of S.W.O.T. was also
researched to see if there were any other constraints and strengths to
do with this product.
After the results of my questionnaires were analysed, and I had
decided on my strategy I came to the conclusion that this product, if
launched and promoted would become a favourable product. It is a new
idea to this country and with the alcohol content would appeal to a
varied amount of consumers. The only down side to this product is the
laws that must be adhered to when this product is to be sold.