Sweet Dream
If Paradise decide not to launch Sweet Dream maintaining its current marketing tactics Le Treat profitability (and eventually sales) will definitely shrink bringing to a potential risk on the fate of the entire frozen specialties line.
After 5 years, Le Treat is reaching the decline phase of its life. Each product life cycle is determined by customer’s behaviors and competitive landscape. In this category both factors play against the possibility of having an extensive product life. * Frozen dessert consumers are looking for novelty, in fact this is what is leading to higher growth rates. As mentioned in the case each new product introduction seemed to generate growth for the entire category. In this market, consumers would tire of a particular product and switch to a new product, which may be a different flavor of the same brand, or possibly a completely different brand. Even though brand loyalty among users of super-premium desserts (Le Treat line target) was greater than among ice-cream novelty consumers, focus groups reveal that they are still looking for new products.
On the other hand it is important to remember that almost all player of the industry are investing a lot in marketing campaigns in order to do both primary and second demand stimulation which must to be repaid in a short period of time given current customers preferences. Therefore, the company should not relay on old products, but have an integrated view of the whole line (old and new products). Introduction of new product make the survival of the category. * Intense competition is negatively affecting LaTreat positioning in the super-premium market. LaTreat positioned as the first super-premium frozen dessert to enter the national distribution. Its good brand recognition jointly with good quality and concept leaded to higher pricing and margins (40%). Even though competitors first entered the market with lower quality and cheaper products focusing on capturing price-sensitive
After 5 years, Le Treat is reaching the decline phase of its life. Each product life cycle is determined by customer’s behaviors and competitive landscape. In this category both factors play against the possibility of having an extensive product life. * Frozen dessert consumers are looking for novelty, in fact this is what is leading to higher growth rates. As mentioned in the case each new product introduction seemed to generate growth for the entire category. In this market, consumers would tire of a particular product and switch to a new product, which may be a different flavor of the same brand, or possibly a completely different brand. Even though brand loyalty among users of super-premium desserts (Le Treat line target) was greater than among ice-cream novelty consumers, focus groups reveal that they are still looking for new products.
On the other hand it is important to remember that almost all player of the industry are investing a lot in marketing campaigns in order to do both primary and second demand stimulation which must to be repaid in a short period of time given current customers preferences. Therefore, the company should not relay on old products, but have an integrated view of the whole line (old and new products). Introduction of new product make the survival of the category. * Intense competition is negatively affecting LaTreat positioning in the super-premium market. LaTreat positioned as the first super-premium frozen dessert to enter the national distribution. Its good brand recognition jointly with good quality and concept leaded to higher pricing and margins (40%). Even though competitors first entered the market with lower quality and cheaper products focusing on capturing price-sensitive