Ice Cream Competitive Analysis

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Executive Summary
This project focuses on finding ways of making P&P a more competitive company. To do this I interviewed P&P’s management in order (i) to understand the company and its decision making process, and (ii) to get data that are important for my analysis. Furthermore, I conducted a field research in an attempt to understand consumer habits, tastes and price sensitivity when it comes to ice cream. Moreover, I went through relevant literature about marketing strategy and case studies of international ice cream brands in order to get an idea of how a successful ice cream company operates abroad. It was obvious from the findings I got from my management research that this is a company that operates from “gut-feeling” as opposed to being a consumer-orientated firm and that they are situated in a densely populated market whose type of environment is a “Volume Business”. In addition to this, even though P&P is the market leader in ice cream in general, as well as, the market leader in bulk and family ice cream, their individual ice cream line has only 19% of the market share. My research findings showed that consumers rank P&P low when it comes to variety and that P&P’s newly (about a year old) launched premium ice cream line “Nostalgia” suffers from a lack of brand recognition, as well as, an inadequate pricing policy; i.e. it is priced too low for a premium ice cream line and this has an effect on (i) perceived quality and (ii) the right return one would expect from a premium product. As a result, my recommendation at the end is that P&P needs to start a price war on the individual ice cream line to weaken its competition, go public to raise capital in an attempt to pursue an aggressive market penetration strategy, where “Nostalgia” ice cream shops need to open at prime locations all over Cyprus and promote their brand more intensely, while increasing their variety and improving R&D in the company.

Table of contents

1. Introduction4
1. Background4
2. Purpose of the Thesis 4
3. Research Aims and Objectives5
4. Structure of the Thesis6

2. Situational Analysis7
1. Introduction7
2. Industry Analysis7
3. PEST Analysis9

3. Literature and Strategies Review11
1. Introduction11
2. Growth Strategies11
3. Pricing Strategies20
4. SBU Analysis and Product Management28
5. Porter’s Five Forces Model31

4. Methodology32
1. Introduction32
2. Research Purpose33
3. Research Questions35
4. Target Population35
5. Sampling Frame, Size and Procedure36
6. Survey Methods38
7. Questionnaire Design39
8. Questionnaire Flow Chart40
9. Decisions41
10. Pilot Testing42

5. Research Findings and Analysis43
1. Introduction43
2. Findings from Management Interviews43
3. Analyzing Management Findings60
4. Findings from Field Research63
5. Analyzing Field Research Findings66
6. SWOT Analysis72

6. Action Plan78
1. Introduction78
2. The Plan78
3. Cost-Benefit Analysis86
4. Limitations87

References and Bibliography88

Appendix 1 – Questionnaire for Senior Management89
Appendix 2 – Questionnaire for Consumers90
Appendix 3 – Field Research Findings Charts93

Section 1

1.1 Background

Papaphillipou and Patisserie Panayiotis Ice Cream Ltd[1] is a traditional family business that was founded in the mid 60s. Their story began when they first started making homemade, all natural ice cream with the purest, farm fresh ingredients. The quality of their products made them popular right from the get-go. They followed an old traditional...
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