Key Points for Carvel Ice Cream Case

Topics: Ice cream, Retailing, Milk Pages: 2 (696 words) Published: November 5, 2012
Key Points for Carvel Ice Cream
Key Points
1. Dairy products are not very popular in China. Health concerns and a large lactose intolerant population are obstacles Wang must consider. 2. Carvel has a very limited ($20,000) advertising budget for the year. Radio and television advertising are ruled out by the low budget. 3. Several segments of the Beijing population are potentially promising to Carvel. The three most attractive segments are (1) middle and upper class Chinese professionals, (2) "little emperors" (children in one-child homes, who tend to be spoiled by parents and grandparents), and (3) expatriate residents. 4. Costs of Carvel products could be reduced by 5% by whipping more air into the ice cream, but this might compromise Carvel's image for quality products. 5. Wang is considering introducing a new product, the "Piece of Cake" (a small, single slice of ice cream cake) to provide an inexpensive introduction to Carvel's cakes to Chinese consumers. • Carvel's products are available in Carvel retail stores (4 full-service and 6 scaled- down outlets), high-end supermarkets (25 accounts), local supermarkets (25 accounts), bakeries (40 accounts), and restaurants and bars (60 accounts). Case Questions

1. Carvel's new Beijing manager, Steven Wang, has not yet formulated his pricing and product policies. What advice would you give him? Should Wang reduce Carvel's prices, perhaps by reducing product quality? Wang needs to carefully consider the position of Carvel's products vis a vis Baskin-Robbins and Haagen-Dazs products. This is key, developing appropriate product and pricing policies. Also, Wang needs to consider longer term implications of product and pricing decisions. If Carvel is committed to the Chinese market (as it seems to be) the product and pricing decisions Mr. Wang makes need to build for the future and not simply maximize current year sales.Do you agree with Wang's deemphasizing sales to Beijing's expatriate community? Given the small...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Chattanooga Ice Cream Case Essay
  • Chattanooga Ice Cream Case Essay
  • Carvel Ice Cream Essay
  • Chattanooga Ice Cream Case Study Essay
  • The Chattanooga Ice Cream Division Case Essay
  • Chattanooga Ice Cream Case Analysis Essay
  • Chattanooga Ice Cream Case Analysis2 Essay
  • Ice Cream Essay

Become a StudyMode Member

Sign Up - It's Free