CARVEL ICE CREAM-DEVELOPING THE BEIJING MARKET Case Solution
Q:1) Based on case data, outline why Carvel entered into China in the first place. The objectives of the company were to create training and marketing base which could help it to expand in to other areas of China.The Beijing ice cream industry comprised of standard and premium ice cream products. However, the traditional ice cream producers didn’t try to build brand recognition and awareness in the consumers due to which foreign companies identified the opportunity and entered the market via joint ventures and focused to build brand awareness. Furthermore, these joint ventures were able to acquire significant market share by using different marketing tactics.
However, Carvel was not performing up to the expectation and the sales were continuously decreasing particularly in ice creams cakes category due to the lack of information and customers insights upon which decision could be made.On the other hand, the management of company identified and gathered the data through customers’ feedback, sales staff and other information catered from business magazines in order to consider the untapped factors in the decision making. The management of the company identified several factors about Beijing such as; the city’s economic growth was expected to grow about 8% with -1.4% of inflation's, 300,000 people were considered upper-middle or upper income earners, the city’s literacy rate is about 9%, and only 15 out of 100 households had the residential freezer owner ship.
Q:2) Be clear in outlining both what they are and why.
Marketing Objectives:
The company should base its marketing strategy and objectives on the findings of its study about Beijing and customers’ purchases. The management of the company should focus on creating awareness of the cold food in Beijing as the people in China considered cold food is not good for health. Furthermore, the company should focus on the continuity of the product performance by increasing the customer loyalty. Moreover, the company should also focus on increasing the market share and growth sales for each of its products. The increased brand recognition should also be focused on the market objective of the company. In addition, the company should increase the differentiation of its products from its competitors. The company should increase its global market presence in the related industry, this would help the company to build awareness and brand increased brand recognition globally. Furthermore, the company should also acquire the customers of its competitors by providing the desired products to the customers. Thus, the overall marketing strategy of the company should be focused to increase its brand recognition and market share of the company.
Target Customers:
The company should focus every group of customers for its products as the ice-cream products are usually appreciated by the every age group therefore, the company should target the low income class as well which would likely to grow its market share and helped it to acquire customer’s loyalty. Furthermore, the company should also target teenagers and children together with high age class people for its ice cream cake.
In addition,the company should introduce flour-based cakes as they were cheaper than ice-cream cakes in Beijing. Moreover, the company should not lower the quality of its products in order to decrease the cost. The company should focus to improve the quality and find such tactics that could help it reduce the cost....................
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