Free Marketing Essays - Granny Emma’s Ice Cream Company
Introduction
An evaluation will be made of Granny Emma’s Ice Cream Company, utilising the given Case Study-Granny Emma’s Ice Cream. The evaluation will incorporate a substantial amount of factors and various criteria, pertinent to the organizational assessment. An external analysis and appraisal of current and future market segments will also be included.
The present segmentation approach will be analysed and future possible market segments will also be assessed, with a light to future expansion. Concerning possible future expansion, the possible impact on the current market will also be assessed. Resultant opportunities and threats will consequently be evaluated.
This evaluation will be undertaken mainly from a marketing perspective concerning the situation at hand, incorporating various marketing applications and related methodologies.
Consequently, the evaluation will lead to the discussion and assessment of a substantial number of marketing principles and the application thereof. These principles when applied as part of the given case study will form the core of the discussion.
The core of this discussion will consequently entail a marketing analysis concerning all variables and factors mentioned up to this point, further incorporating inclusion of certain other questions at hand. These again refer to this Ice Cream Company, regarding the marketing environment, competitive and customer analysis.
After this marketing analysis has been completed therefore, the actual answer concerning potential segments to be targeted regarding expansion will be forthcoming.
Furthermore, concerning the question of current market expansion, the possible impact on the market will be assessed, in the light of providing an actual answer. This will be done with a view that an organisation is usually itself affected by “market forces.”
The answer to consequent benefits and dangers concerning these possible, future market segments regarding expansion, will also be answered. This will be in the form of possible resultant opportunities and threats regarding any possible expansion.
The issue of the effect on the current market concerning expansion by Granny Emma’s company will consequently also be answered, while formulating a thought- out solution once again, by considering viable, opportunities and threats.
The above discussion and analysis finally leading to the desired concluded answers and solutions will ultimately finalise this organizational marketing assessment.
While considering the organizational resources at Granny Emma’s Ice Cream Company, one could take into account a variety of different factors:
All physical and tangible resources as well as intangible, could be seen as forming part of the organizational resources on the whole.
All of product, price, promotions and place, could be considered as being part of the organizational resources strategy, target market and marketing mix, consisting of the actual marketing strategy.
Organizational resources as such, tangible or otherwise, concerning any effective marketing plan as seems to be the case with Granny Emma’s Ice Cream Company, form a component of the actual marketing strategy.
When searching for answers concerning targeting potential market segments concerning expansion, the target market is of extreme importance. Similarly, concerning the marketing mix, it is important that this is correct, in order to exercise effect on the appropriate target market.
Target market and marketing mix is also of great importance, when considering solutions regarding the question of current market expansion, while evaluating the possible impact on the market. It should be kept in mind that often the reverse impact occurs. It should also be kept in mind that an organisation cannot possibly expand, without an appropriate target market and marketing mix.
Once again, target market and marketing mix are both of significant importance, when considering the answer to consequent benefits and dangers, regarding these possible future market segments regarding expansion.
Finally, target market and marketing mix is once more, of great importance. The issue of the effect on the current market concerning expansion by Granny Emma’s company will consequently also be answered, while considering viable, opportunities and threats.
In terms of product being one of the components of the marketing mix, it seems that this is a highly valued item. The “grandmother’s recipe” has been tried and tested over time, including the present, with huge success. According to the case study, the ice cream itself appeals strongly to the target market. This particular ice cream was considered to be of a “premium” or even “super premium quality.”
In terms of promotions, which are also a marketing mix component, the “traditional approach” seems to have worked very well. The “traditional clothes” worn by the staff, as well as the “traditional brand” of an old photograph of Granny serving ice cream, has been aptly utilised. This brand could be symbolic of purity, friendliness “and the good old times.” The apparent strong brand image, has led to strong sales at two supermarkets, with the possibility of sales occurring at a national level.
In terms of place as a further marketing mix component, the initial seaside resort seems to have worked quite adequately. This “traditional ice cream”, involved the possibility of actual enjoyment at a café seating area. Branches in the town centre also served salads and lunches. At present, production is available at an adequate factory, generating wholesale markets.
The company also supplies restaurants, hotels, shops and traditional ice cream vendors, being significant concerning increased profit and further brand awareness.
Increased brand awareness could also lead to further retailers emerging, at the desired point of sale.
When considering price as part of the marketing mix, this highly valued, premium product of substantial worth, “speaks for itself”. Price is often associated with quality and this product has been branded effectively, when considering the already discussed traditional approach and branding with emphasis on purity and total value. Also one hundred and fifty millilitre and 500millilitre tubs are offered for sale, as well as one, two and four litre containers. An ice cream sundae glass with three hundred millilitres is also available. This creates a substantial price variety for the customer.
With regards finality on organizational resources at Granny Emma’s Ice Cream Company, further resources to consider might include the following:
Expertise concerning the making of ice cream and the ice cream market itself, sales staff that adhere to the “traditional company values and brand name,” factory workers which are knowledgeable with regards “Granny Emma’s favourite recipe”, a highly valued sales product, a high equity brand, various business relationships, as well as retail units and a centralised ice cream production capability, of thirteen thousand litres of ice cream per day.
Furthermore, an external analysis that will include the marketing environment, competitive analysis and customer analysis will be required.
While considering an external analysis that includes the marketing environment, competitive and customer analysis, much could be considered, once again within the scope of this case study:
Marketing environment:
The marketing environment usually includes both external or uncontrollable variables, as well as internal or controllable. For the purpose of this assignment, only the external or uncontrollable variables will actually be considered.
While conducting a P.E. S. T Analysis, (political, economic, social and technological) analysis, it can be seen that all of these variables are actually external, or are at times referred to as the “uncontrollable variables.”
They are uncontrollable in their nature, simply because an individual or organisation can seldom, or at all ever, exert any control, or exercise any influence over them.
Together with controllable variables, the marketing environment or part thereof, may be defined.
While considering the marketing environment with regards the political analysis:
The Government’s policies with regards healthy eating and obesity as well as perhaps restricting advertising concerning “junk food”, has played a major role with possible future sales, as well as actual ice cream content. Alternatives were also offered by the competition.
While considering the marketing environment with regards the economic analysis:
At some point in time a realisation occurred, that ice cream sales were mostly governed by the weather and were consequently seasonal.
This was a big problem as staff employed on a seasonal basis, were a big cost element to the company. Once again it can be clearly seen that a lack of actual control existed, when considering this uncontrollable economic situation.
While considering the marketing environment with regards a social analysis:
Certain trends seemed to be emerging at the time, with regards a new and healthy lifestyle consumer approach. Consumers sought healthier foods, with a lower fat content, leading to an overall health improvement. While in prior years a minimum fat content of five and a half percent within ice cream was sought, this has changed dramatically.
While considering the marketing environment with regards a technological analysis:
According to the given case study, the ice cream industry really came into being around the year nineteen twenty-six. This was due to the technological factor concerning the development of a viable process freezer. This in effect permitted mass production of this product as such, giving rise to the possibility of an actual ice cream industry.
Similarly, Granny Emma’s Ice Cream Company, found itself in a similar position of wishing to manufacture ice cream on a much greater scale, resulting in centralised production within a factory, concerning in a daily output potential of thirteen thousand litres.
Once again technology has been utilised, concerning need for mass production and the provision of consequent competitive advantage.
Competitive Analysis:
Many factors and variables can be assessed at this point with regards this entire discussion, while making reference to competitive advantage.
In terms of the product offered, as has been discussed, this has been a highly valued item, appealing strongly towards the target market. Its appeal regarding “traditional values” including purity and friendliness and consequent highly valued brand image, have positioned the product accordingly.
Also, when consequently referring to consumer psychographics the psychological benefits on offer to the consumer have been substantial.
These factors as a consequence provide great competitive advantage, the product enjoying sales at two supermarkets, with the possibility of increased sales potential.
The product is also available at the coast as well as at a café seating area, with diversification having occurred, including sandwiches and snacks. Once again competitive advantage may be seen via product diversification, as well as purchase availability and the negation of seasonal unpredictability, leading to increased sales.
Production is available at an adequate factory, generating wholesale market sales and increased profits. Granny Emma’s Ice Cream Company also supplies restaurants, hotels, shops and traditional ice cream vendors, enjoying a substantial amount of brand awareness, leading to the possibility of increased retailer outlets.
Competitive advantage can clearly be seen with regards brand awareness and strong brand image. Further competitive advantage exists with wholesale market sales and resultant increased profits.
When considering price, due to this superior product being offered via its highly effective brand image displaying superior product features, price is simply interpreted as being worthy of the product on offer. Also, the substantial volume variety on offer concerning sales, created a substantial price variety for the customer.
A great competitive advantage can be seen here, as the perceived price value is worthy of product offer. Furthermore, price as such has been defined as one of the five important factors when defining the position of ice cream, within this case study, positioning itself, relating to competitive advantage.
There is also great expertise available regarding the ice cream market and Granny Emma’s Ice Cream Company. While also considering this high equity brand, various business relationships, various retail units, and a centralised ice cream production system, much competitive advantage may be sought.
When incorporating diversification, market awareness and also considering a greater amount of desired expansion and diversification, this calls for even greater potential for competitive advantage.
At this point in time, Porter’s Five Forces Model will be utilised, with regards a finalized, external competitive analysis:
The ice cream offered by Granny Emma’s Ice Cream Company could be seen as displaying competitive advantage in a number of different ways:
It could be seen as comprising of “traditional values” and “purity”, displaying high equity. Consumer psychological satisfaction as well as diversification also seems to feature as highly positive attributes. Wholesale market sales also feature, comprising of substantial market output. The product is also “priced adequately”, offering substantial price variety. Price itself directly refers to competitive advantage within the scope of this case study and it seems that this variable has been catered for, due to this superior product, which has been on offer.
Considering Porter’s Five Forces Model as well as the above:
While considering the threat of entrants into the marketplace:
This will occur once again, while considering Granny Emma’s Ice Cream Company, seen as displaying competitive advantage in the number of different ways described:
Once again a real threat occurs, as this newly created health food market referring to the low content fat requirements within ice cream and the attempted negation of junk foods, may create a new target market within the food industry. This new target market referring to new market segments will create a “gap in the market.”
New entrants will ultimately be attracted to new sales possibilities.
The “traditional values” and “purity approach utilised by Granny Emma’s Ice Cream Company may be faced with substantial competition from new entrants, targeting differently created market segments.
While considering barriers to entry:
Once again considering Granny Emma’s Ice Cream Company, displaying competitive advantage in the number of different ways described:
Concerning government policy regarding barriers to entry, it seems as if there are “no barriers”, since the government has actually encouraged this new healthy lifestyle approach.
This is once again a real threat, as Granny Emma’s Ice Cream Company may lose substantial market share. The competition Richmond Foods, since they are the main U. K manufacturer, would also possess economies of scale. Together with government policy, domination of the ice cream market could therefore occur.
The “traditional values” and “purity approach” used by the company, while having been components of high equity in their own right, concerning the new government policy, would progressively exercise less effect. This traditional brand name would also progressively lose brand equity. Consequently fewer sales would eventually occur.
Product diversification again, seems to be a solution, which could lead to differentiation and ultimately once more to competitive advantage. Through adequate diversification, one could even maintain, or possibly even improve product price, relative to the competition.
While considering bargaining power of buyers:
This analysis will occur once again, via reference to all related issues and competitive advantage, while considering Granny Emma’s Ice Cream Company.
Much bargaining leverage could occur, concerning buyers, with regards this new food and ice cream market. This would be the case especially concerning the availability of substitutes, concerning the ice cream market as a whole. This would result in decreased sales for Granny Emma’s Ice Cream Company.
Also, brand identity for Granny Emma’s Company could diminish as a result, as “traditional values” encompassing “purity”, would also as such no longer sell this ice cream product sufficiently.
A further possibility could be a reduction of the retailer ice cream prices at Granny Emma’s, as an overall consequence, including sales concerning wholesale markets.
Competitive advantage loss would result.
While concerning bargaining power of suppliers:
Again, via reference to all related issues and competitive advantage, while considering Granny Emma’s Ice Cream Company, certain issues will be discussed:
With regards this possibly newly acquired health market, if supplier concentration is of a sufficiently high enough volume, this will once again lead to decreased competitive advantage with regards Granny Emma’s Ice Cream.
This will be due to sales being undertaken via other retailers, resulting in market share loss, regarding this company.
This is unless further differentiation occurs with regards product range and ice cream modification, as regards a maximum of two percent fat content.
The wholesale market sales could also be affected drastically, and the company could be forced to cut back on retail prices, in order to survive within a saturated market, with possibly diminished brand equity.
While concerning threat of substitute products:
The leading U.K Ice Cream Manufacturer being a big part of the actual competition has introduced the Skinny Cow Brand, incorporating less than two percent fat content.
If there is sufficient buyer inclination to substitute, as could be the case concerning this government health initiative, unless both further differentiation as well as product adaptation occurs, competitive advantage could very well be lost.
Moreover, if Richmond Foods as well as other competitors sell their product at a lower price, competitive advantage loss could actually occur with substantial certainty.
Substitute products may furthermore, take on “attributes” of their own when relating to factors such as “purity”, by efficiently advertising their very low fat content as such and managing to relate this to brand name.
External Customer Analysis:
As has already been discussed, certain “customer attributes” exist, within the scope of this case study.
Concerning ice cream sales, it seems that in previous years, the customer has enjoyed purchasing really good tasting, “full cream” ice cream. This has incorporated relatively high fat content. It has possibly also included desired traditional manufacturing, branding and sales methodologies, within the U.K.
The customer seems to have further enjoyed such a traditional purchase, at a traditional point of sale, in Granny Emma’s case, the seaside resort.
Health and health care products it seems have not featured highly on the agenda of the customer. Certain trends however, have begun to create the opposite effect.
An appraisal of current and future target market segments:
Concerning the changed political environment, it can be seen that this uncontrollable variable may have possibly changed segmentation requirements, leading one to have to target the “healthier lifestyle” market instead. It seems that the current segmentation approach of the high fat food market, may have become outdated.
In terms of diversification sought and expansion, this may in itself be a good idea. Consequently, new markets will also have to be targeted. However, there is no mention of practical “diversification” of the brand also, in order to represent the newly sought products and product range.
If the brand is altered incorrectly, this may in itself be of great concern and a potential threat to the company. If it is not altered at all regarding diversification, once more, the same dangers apply.
However if it is altered adequately, newly sought market segments should be sought and accordingly targeted, possibly incorporating the health food market. This could prove to be a great success.
Also, consumer psychographics segmentation could occur, which could include the low fat element as a possible means of purity and satisfaction. It seems that a “gap in the market” would possibly exist, which should be utilised for segmentation purposes.
Including this possible “brand reinvention” concerning purity and low fat content, the ice cream itself could in a sense become “redefined”, allowing one to maintain Granny Emma’s Logo and brand name. This would reduce any possible risk associated with an actual brand alteration.
Finally, potential segments of the market to be targeted, should include:
The “healthier lifestyle” market segment and the low fat and purity content market segment. This should be accomplished, via reference to the already established and credible, Granny Emma Brand Logo.
These segments should incorporate mainly the non-dairy ice cream market, as this seems to have a lower fat content. In conjunction with effective branding as mentioned, a premium price may be sought. An adequate “overrun” and packaging method should be utilised.
The alternative product expansion should also refer to the above-mentioned segments, simply carrying forth a variant of the Granny Emma Brand Logo, when considering actual food and drink.
Possible current market impact concerning expansion:
One could answer this question with some uncertainty, as has already been mentioned, as it is usually the market that actually exercises impact upon an organisation.
I n order for Granny Emma’s Ice Cream Company to exercise “some form of impact”, this company will have to be at the very forefront of competition.
This would be with regards viable market segments and a marketing mix, forming part of an elaborately thought out marketing strategy.
Notwithstanding being the leading U.K manufacturer, the inclusion of a great amount of sales would assist concerning current market impact.
If a substantial amount of sales are consequently made and sufficient market share is attained, regarding relevant and viable markets, this could exercise an impact on the market accordingly.
Concerning expansion as already discussed, the market could be affected substantially, from the point of view that different types of products may be sought by consumers and in different quantities. This may call for certain organisations to reposition a certain type of product accordingly, in order to acquire competitive advantage. Furthermore, certain product categories may eventually lose market share, to the point where they are no longer viable.
Consequent benefits and dangers:
When referring to benefits and dangers, one refers to a S.W.O.T (strengths, weaknesses, opportunities, threats), analysis.
With regards the strengths, the company has both market knowledge expertise, as well as substantial production capability. With regards the intention of possible further expansion and diversification leading to possibly increased competitive advantage, great advantage can be sought, all of these factors referring to substantial benefits. If there is relevant market impact, this will be a further strength, as this will imply that the company will have captured substantial market share.
Concerning weaknesses, it can be deduced that due to the fact that Granny Emma’s Ice Cream Company is not the leading U.K Manufacturer while considering both output and sales, a certain amount of danger actually exists. This danger comes into being, when considering expansion, with regards seeking certain market segments. If these market segments are not targeted appropriately, then this may turn out to be an unsuccessful venture, when considering market impact.
Regarding opportunities, it would be a real benefit to attempt to expand and diversify, consequently gaining further competitive advantage. This could involve increased product sales and targeting viable market segments, manifesting as a benefit, while entering the prior discussed, “gap in the market.” Concerning market impact, this can turn into a big opportunity and benefit, if it is actually accomplished. It will in effect mean that the company will have become a dominant player in this industry, having captured substantial market share.
With regards to possible threats or dangers, the threat exists of not expanding sufficiently, or not capturing sufficient market share, or both. This would result in a loss of competitive advantage, manifesting as a potential danger. A further threat or danger exists, that while attempting expansion, the present brand name might not cater favourably concerning the newly targeted market segments. Concerning market impact, this may not turn out to be the case at all. Consequently market share attainment will not have occurred, leading to an unsuccessful venture
Bibliography:
· Perreault. D. William
McCarthy. Jerome. E
Basic Marketing
A global – Managerial Approach
12th Ed
IRWIN Publishers
· Koch. Richard
GUIDE TO
STRATEGY
How to create and deliver
A useful strategy
(1995)
(Pitman Publishing)
