Carvel China - Case Analysis
Case Analysis: Carvel Ice Cream – Developing the Beijing Market
Problem
How to increase ice cream cake sales in a counter culture ?
Issues
What consumer to target ?
What products to focus on ?
What prices to charge for those products ?
What points of distribution would best increase cake sales ?
How to support these sales through various print media options ?
Industry/ Market Analysis The Beijing ice cream industry was made up of standard and premium products. The premium products consisted of 2% that was approximately 700 tonnes and rest was standard products manufactured by low cost producers at lower costs. The standard market was made of single serve and juice products. Earlier, local ice cream producers did not try to build brand awareness. Later foreign firms entered the market via joint ventures. They had a strong devotion toward building brand names. These foreign joint ventures were able to secure 80% of the standard ice cream market over a few years. The foreign joint ventures were able to capture the majority of the market share by using freezer loan programs. The residential freezer owners accounted for 15% of the households. The joint venture firms would loan freezers to retailers to store the ice cream in return retailers were supposed to stock only the products of the joint venture firms. The photos of company’s products, design and company’s logo displayed the brand awareness. The fact that city had a high literacy rate, it was getting aware of importance of brand value. The rise in income over few years would enable people to spend for these brands. Beijing had a good economic growth in past few years thus leading to increase the buying habits. The premium ice cream market was made up of hard ice cream and ice cream cakes. The premium ice cream market did not develop until Baskin robins entered Beijing in 1992. Later Carvel and Hagen- dazs entered the premium market to compete with Baskin robins.
Consumer Analysis (Peter Wei)
Problem
How to increase ice cream cake sales in a counter culture ?
Issues
What consumer to target ?
What products to focus on ?
What prices to charge for those products ?
What points of distribution would best increase cake sales ?
How to support these sales through various print media options ?
Industry/ Market Analysis The Beijing ice cream industry was made up of standard and premium products. The premium products consisted of 2% that was approximately 700 tonnes and rest was standard products manufactured by low cost producers at lower costs. The standard market was made of single serve and juice products. Earlier, local ice cream producers did not try to build brand awareness. Later foreign firms entered the market via joint ventures. They had a strong devotion toward building brand names. These foreign joint ventures were able to secure 80% of the standard ice cream market over a few years. The foreign joint ventures were able to capture the majority of the market share by using freezer loan programs. The residential freezer owners accounted for 15% of the households. The joint venture firms would loan freezers to retailers to store the ice cream in return retailers were supposed to stock only the products of the joint venture firms. The photos of company’s products, design and company’s logo displayed the brand awareness. The fact that city had a high literacy rate, it was getting aware of importance of brand value. The rise in income over few years would enable people to spend for these brands. Beijing had a good economic growth in past few years thus leading to increase the buying habits. The premium ice cream market was made up of hard ice cream and ice cream cakes. The premium ice cream market did not develop until Baskin robins entered Beijing in 1992. Later Carvel and Hagen- dazs entered the premium market to compete with Baskin robins.
Consumer Analysis (Peter Wei)