Marketing Plan for Lords Ice Cream Parlour

TABLE OF CONTENTS *1. 0 EXECUTIVE* epitome master keys Ice- baste sitting room, one of the vizor starter skitter harvestings situated in St. Johns woods with a good commercialise sh be is one of the best in that battlefield providing icing cream with fresh tasting and modern packaging. It was shewed in 1998, Lords Ice-cream living-room, at turn in personas straight- decline technology for manufacturing more than twenty three types of premium churl cream in its factory in Swiss Cottage, producing nearly 530 liters of scum cream each day . Lords Ice-cream living room has a devil year merchandising aim for legitimate nodes as well as its sweet consumers to tie and satisfy those target themes of consumer. The comp whatever wants to improver its foodstuff sh ar by 7% and compete with the current and in the buff entrants. For the next twain years the order wants to enlarge its promotional activity. The management has a plan to utilise its one- foursometh of its profit for promotional activity. The manager is also planning to increase its branches in two to three dissentent locations. *3. *0* COMPANY* PROFILE 4. 1 MISSION Mission is the organisations reason for existence.The mission describes the organisations sh atomic number 18d values, beliefs and reason for being. Lords Ice-cream living room without acting an exception, being committed to achieving the highest quality products and stance itself as a good brand by gaining the consumers trust aligns heart and soulively to its guided mission that echoes-The world of great judgment. This includes a dedication to fol upset-up the existing operations, the evaluations and the creation of the new products by not only manufacturing the highest quality products that also delivering the product by maintaining this high quality.To satisfy the ever-changing inquires of the customers, Lords Ice-cream parlor is launching on a regular basis new icing-skating rink creams and introduc ing new flavours. Thus in a few words it rotter be said Lords Ice-cream sitting room is based the relationship with customer. 4. 2 VISION The message from the managing director of Lords Ice-cream Parlour propagates as I dreamt of a line of work venture that would have distinct appeal to society for its unique qualities and at long buy the farm will become a role model for other business enterprises. This simple and grotesque quality is Be True to The Society. Lords Ice-cream Parlour as being a precise prospective SBUs which is guided by this similar vision. As a result this key philosophy has earmarked Lords Ice-cream Parlour as the more or less trusted and one of the better companies in the country. 9. OBJECTIVES Corpo set Objectives To give an insight to the ice cream industry, the party and the product line. To make an ratement of the interaction between Lords Ice-cream Parlour and its speedy environment and analyse the impact of miscellaneous tr remnants upon its survival and long-term success.To conduct an investigation of the wide rate of strategies pursued by Lords Ice-cream Parlour with a view to achieving its objectives. merchandising Objectives To analyse the merchandise strategies for Lords Ice-cream Parlour and assess its target consumers and competitors. To regain the 15% of the in lively member by December 2010. To provide an introduction of the strategic aspects of marketing with particular reference to the analysis of marketing mix. To increase the revenue by 12% by December 2010. To increase the market sh atomic number 18 by 7% by December 2010.To analyse the techniques of segmentation, targeting and set of products. To analyse the distri scarceion channels and the role of intermediaries in the distribution network. To develop an appreciation of the need to win a promotional mix appropriate to the product. To explain and analyse the role of market placeing Research. To have a clear analysis of the various out harvesting s trategies for the market opport unity identification. Research was undertaken by gathering descriptive grooming from the managers, customers and employees in the form of psycheal interviews.Both quantitative and qualitative analysis has been emphasised. Both primitive and secondary selective cultivation were obtained through informal interviews with the attach to and questionnaires to customers. Moreover in cases where managers and customers were unwilling or inefficient to provide information, observational research played a vital role. It must be added that the report though, seek to give an overall view of Lords Ice-cream Parlour, it focused on London City as their area of study.Primarydata was first collected by taking in depth interviews of the merchandise Executive and Sales person to have a better insight to the marketing aspects of ice cream. Mostly personal interviews were undertaken since flexibility, quality of data that set up be collected, speed of data collec tion and response rate is extremely high and information seems to be more reliable and effective. Only unbiased, relevant and valuable data of related issues were recorded to tell a critical evaluation of the marketing techniques and strategies used by Lords Ice-cream Parlour.Problems were faced during the interview, as the managers were loth to dis approximate roughly of the confidential aspects of the organisation. All the data obtained were not al dashs reliable and hence theater of operations to error. Due to the fourth dimension constraints I could not complete a comprehensive investigation and on that point were approximately areas that were left unexplored. In almost occasions managers were hesitant to cooperate in providing honest answers. 8. 1 The Marketing environment No business is large or fibrous enough to create major alteration in the external environment.These factors are generally uncontrollable, thus market managers are basically adapters kind of than agents of change. So it is vital for Lords Ice-cream Parlour to take these factors into consideration in every step of their decision -making process and day-by-day activities. THE MARKETING ENVIRONMENt defecate mannequin seeframe move backframe The Task Environment Lords Ice-cream Parlours task environment consists of those micro groups in the environment such(prenominal) as suppliers, distributors, customers and competitors. These are interrelated groups that influence managers on a daily basis.SUPPLIERS From 2010 January the management decided to open two new branches. And two other retail stores are vexed to take the product from Lords Ice-cream Parlour. The main duty of the distribution unit of Lords Ice-cream Parlour is to create a sequence of effective network so that an central strategic edge over competing channels are created and ensure a continuous flow of its products to the last-ditch consumers target market. The activation of the distribution channels proceed s from their factory and ends at the retail outlets of refrigerated vans.CUSTOMERS creation the major source of survival and profit, customers form the most consequential component for an organisation standardized Lords Ice-cream Parlour. Lords Ice-cream Parlour considers customers as being their life-blood of survival and is taking the maximum innovative efforts that can be use for utmost customers satisfaction. Customers here can be segmented to family, kids, teenagers of high end, mid end and low end of the market. Lords Ice-cream Parlour operating in such ever-changing world of tastes and taste pays heed to customers choices and their attitudes.They, very keenly take on customers advice, try and amend as well as add new attribute to their business in order to ensure survival in this highly competitive industry. COMPETITORS One of the most important magnates that always keep an organisation on guard is its competitors. Competitors are organisations that produce similar good s. In the context of Lords Ice-cream Parlour, Movenpick, Baskin Robbins, Thorntons and Marine Ices are their competitors. plainly surprisingly, the marketing management of Lords Ice-cream Parlour views these local brands as mere participants in the same industry rather than as competitors.The General Environment Economic, technological, socio-cultural, demographic, political and legal, and orbicular forces form the macroeconomic environment that Lords Ice-cream Parlour operates in are as follows ECONOMIC Economic forces are of c at a timern to businesses involves producing goods and services that people want and pay for, as because the economy is an indicator of the general wellness and well being of a nation. Lords Ice-cream Parlour takes into account various economic factors, takeably the rates of inflation, the exchange rate and level of income.The apex reason for such is to have a control over its allocated reckon for domestic and imported raw materials. But most important ly alertness of economic variables is necessary to larn Lords Ice-cream Parlours pricing strategy so that all segments of the population can afford to bargain their products. One of the most pervasive factors in the environment, the impact of technology is seen as the combination of skills and equipments that marketers use in their day-to-day operations.In Lords Ice-cream Parlour, use of technology can be seen in price of the automated cone baking machines, chocolate making machines, injected deep freezers, milk processing machines and others. These innovate machines are able to produce ice creams at a faster rate while not undergoing any sacrifice in the level of quality, and thus their warehouse has capacities in five hundred liters. The socio-cultural environment is do of institutions and other forces that affect social values, perceptions, preferences and behaviour.In the context of a diverse people, Lords Ice-cream Parlour has customized its services gibe to the countrys c ulture. While the producing ice cream, Lords Ice-cream Parlour puts strong emphasis in it. DEMOGRAPHIC The demographic forces are of interest to marketing managers because it involves people and people make up the markets. Demography shows the populations inclinations towards sure social structure and the increase or decrease in certain age groups .For Lords Ice-cream Parlour demographic factors are of advantage if it shows an increase in the number children and teenage population (the most lucrative segment for the ice cream industry). semipolitical AND LEGAL The formation, maintenance and survival of any organization are dependent on the stability of a countrys political and legal system. A comprehensive analysis of the political and legal factors by Lords Ice-cream Parlour helps in ensuring stability in terms of its operations.The legal consideration lies in the awareness of various laws regarding import of raw materials and the exchangeable. 8. 2. * Current* Situation Analysi s Core Competencies Among its normal premium and novelty cup, wooden leg and family pack items, chocobar is the most general among consumers contributing 29% to the total gross sales, while vanilla, mega, cornelli and macho, each with sales of just or so 5%, and have also made their distinct places in the minds of the consumers. The company is giving its effort and engrossment for some new and modified flavour of ice-cream.The company wants to increase its market share by 7% for which it is introducing some new marketing strategy and it will be implemented from the next year. Market information Lords Ice-cream Parlour is in their 10th year of business. Being an ice-cream living-room in the St. Johns Wood High driveway area, its main activity is to attract customer by its variety of ice-cream flavour. Lords Ice-cream Parlour possesses good information about the market and having a good idea about the consumer trends and the sameability of the consumers.And this information h elps them to understand how well they can beam with their consumers and how better they can be served. Geographic The geographic target for the ice-cream parlour is St. Johns Wood area. Five fledge kilometre people are targeted. Total targeted population is approximately 13,500 64. 9% are economically active and 35. 1% are economically inactive. A fulltime employees individual average income is ? 29,305. 48. 8% are meliorate and 52. 2% has got no qualification. Behaviour factors Recognize the need to have a good dessert akin ice-cream.People likes ice-cream more than any other dessert. Ice cream is the symbol of lifestyle. Market need Lords Ice-cream Parlour is providing their customers delicious ice-cream and a place for enjoyment. It seeks to offer the following benefits that are important for their customers Customers preference is to get healthy ingredients in their specialised flavour. Customers also prefer a better service and worry from the staff. Market Trends ?Last t wo years consumers has less money in their pocket, so that they are spending less money on dessert and ice-cream.Fitness is very important for the people, that is why people are avoiding ice-cream A big percentage of people are going to pubs and bars rather than coming to the ice-cream parlour. *09. * BCG intercellular substance capital of Massachusetts Consulting Group (BCG) matrix is a manikin for highlighting and analyzing product breeding policy and associated hard currency flows implications in a firm. The BCG approach is based on the philosophy that a products market proceeds rate and its relative market share are important considerations in determining its marketing strategies.The marketing strategies of Lords Ice-cream Parlour is based on the BCG matrix which includes an integration of the firms products into a wiz overall matrix and an evaluation to determine appropriate strategies for all the different strategic business units (SBUs) of the company itself and the ove rall portfolio strategies. Lords Ice-cream Parlour identifies the BCG matrix as a powerful tool To essay the current situation of the company which is based on the present and projected market growth rate and proposed market share growth.To determine and classify each product expected succeeding(a) cash contributions and future cash requirements. To examine the competitive position of a product or a product line and the opportunities for improving products contribution to profitability In figure below, which is based on work by the Boston Consulting Group, consist of four quadrants in the grid, which represents distinct categories of SBUs or major products of Lords Ice-cream Parlour. The categories differ with respect not only to market growth share and industry growth rate but also on cash generation and needs for appropriate strategies. drawframe drawframe drawframe drawframe drawrect drawrect drawrect drawrect drawrect drawframe drawrect drawrect drawframe drawframe hard curre ncy Cow Cash cow has high market share but low growth rate. Since its inception as a business in 1998, the wind Company has had a remarkable track record and has grown to be a better construction houses in the country. Long run survival through effective strategies of defend its market share by reinforcing customer loyalty has insured the generation of more cash than can be reinvested profitably in its own operations.As a result cash from the construction company flows out to support other SBUs that needs more resources. admirer Star has high market growth rate and high market share. The Marketing Manager of Lords Ice-cream Parlour identified Construction and Ice-cream as their star businesses. A number of prospective factors can be reckoned to as being answerable for both SBUs performance. Both Construction business and Ice-cream occupy a dominant position in the market. Star businesses usually grow very fast and have high prospects for growth. For example, Ice-cream grew by 3. 1% in the last year (2008), compared to their 5%in (2007).Question Mark Question Mark has high growth rate, low market share. The identification of the marketing division of Lords Ice-cream Parlour as its problem child, has characterized this business to have high prospects for growth but which has not yet achieved strong foothold in an expanding but highly competitive market. This inability to generate cash has resulted in poor profit margins and hence its need to be augmented by heavy investment from outside sources. Dog According to Lords Ice-cream Parlour, no SBU (currently operating) falls under the grid of low market share and low growth rate, that is, the dog.On a concluding note, the long run health of any company depends on having some products that generates cash (and provide acceptable reported profits) and others that use cash to support growth, with no exception to Lords Ice-cream Parlour. Among the indicators of the overall health are the size and vulnerability of the cash cows, the prospects for the stars, the number of problem child, and dogs if legion(predicate). 10. SWOT Analysis SWOT is the planning exercise used by Lords Ice-cream Parlour, which provides a framework for identifying internal strengths and weakness and the external opportunities and threats it faces.WEAKNESS The major weaknesses of Lords Ice-cream Parlour comprises of Incurrence of high-level expenses in the Research and maturation (R) sector. High operating and maintenance expenses resulting from the large size of the business. Excessive reliance on foreign suppliers. come in new related businesses This is also visible through its new items as Ammo milkshake. Widening the product range. Seeking faster market growth. Exploiting new market segments. Changes in demographic factors.Change in consumer taste This might result if there is an increased awareness among the health conscious people, which may cause a decline in the purchase of ice cream. Increase in foreign compet ition. Rise in new or substitute products. Changes in Political factors. 10. THE *Target *AUDIENCE (*Marketing*) The kind of market Lords Ice-cream Parlour operates in is characterized by the volatility of its general environment, the dynamism of its competitors and most of all the varying and the inconsistency of needs and buying preferences of the consumers market, which are important consideration guiding their day to day operations.Keeping this in mind, Lords Ice-cream Parlour has developed sound marketing programs, which starts with identifying the differences that exists within a market, deciding which segments will be selected and developing particular proposition marketing mixes so as to influence intended customers, and overall perception of the brand, Lords Ice-cream Parlour . Market segmentation Lords Ice-cream Parlour has designed various marketing mixes according to the different products needs and preferences with regard to the consumer market and has cluster people with similar needs into selected segments. Domestic Market SegmentationFor a consumer-oriented company like Lords Ice-cream Parlour, whose main operations rallies around the domestic market, a lions share of its resources is devoted towards table service the domestic consumer segments. After thorough analysis, behaviour and demographic segments have been identified as their prime areas of focus. demographic Segmentation From the viewpoint of an ice cream manufacturing company, demographic segmentation holds importance in terms of its close relation to customer product needs and purchasing behaviour and the ready measurability of variables such as consumers age and life cycle and their income.Age This is the most important component of demographic segmentation. Over the years, ice creams were considered to as being more of a recreational product, but standing on this new century, the effect of globalization has placed ice cream as more of a regularity in our lives. Lords Ice-cream P arlour has divided its markets in segments according to different age groups such as kids, teenagers, and the family range. Different ages of people are influenced by different flavours of ice cream, different presentations of packaging and different product attributes.Kids incline more towards ice creams, which contains animated and colourful packaging, taste of sweet strawberry, fresh mango, pure vanilla, ripples, hazzle nut coating and crispy flakes. Teenagers prefer low calorie ice cream, more daring and wider range of tastes. Families are influenced more by ice creams that fulfil the general appeal and taste of all the members of the family. Income Income is the key determinant of consumers buying behaviour. It is the most popular demographic variable for market segmentation.For a larger part of the population to buy the product, it is very important to segment the market in different income groups. This is given utmost importance in London where there is wide variation in the average levels of income. Lords Ice-cream Parlour has divided the market into three income groups low-income group, mid-income group and high-income groups. Market Targeting After market segmentation, Lords Ice-cream Parlour goes for designing, implementing and maintaining marketing mixes intended to meet the needs of the target groups, resulting in reciprocally satisfying exchanges.Domestic Market Targeting The two general strategies Lords Ice-cream Parlour uses for selecting target markets are differentiated and unvarying marketing. DIFFERENTIATED UNDIFFERENTIATED Undifferentiated target strategies approach the segment as one big market with no individual segments and thus require a single marketing mix. Chocobar and the impudently introduced Kulfi are the prime examples related to successful targeting of the mass market. Chocobar priced at ? 3. 4/-, mini chocobar priced at ? 2. and Kulfi priced at ? 1. 6 with dreary colour packages enables Lords Ice-cream Parlour to go for mas s marketing. Market Positioning Positioning refers to developing a specific marketing mix to influence potential customers overall perception of a brand, product line or organization. The marketing manager of Lords Ice-cream Parlour assumes a realistic view of how customers gestate about their offerings in the market. At the same time, the manger also knows how he wants target customers to think about its marketing mix.According to him positioning issues are especially important when a competitor in a market appearsto be very similar, with the ice cream industry being a prime example. Lords Ice-cream Parlour follows several positioning strategies. Products Attributes masculine Exquisite Chocobar Energetic Shell & Core Metange Lolly Eager Clown Animating Mega Energetic burnt umber Refreshing Ripple Praiseworthy Pralin Puissance Cornelli Dual Usage Occasion Usually consumers perceive ice cream as an integral part of summer. Lords Ice-cream Parlour aims at positioning ice creams to as being a winter item along with its regular summer item digit. Lords Ice-cream Parlour is trying to position its ice cream as a item for all seasons in other parts of the country like that is perceived in London, through different promotional activities. *11. THE* Marketing Mix There are many possible ways to satisfy the needs of target customers. A product can have many different features and quality levels. Service levels can be adjusted.The package can be of various sizes, colourise or materials. The brand name and warranty can be changed. Various advertising media television, newspapers, magazines, radio, and billboard can be used to attract the potential customers. A companys own sales force or other sales specialist can be used. Different prices can be charged. expense discounts may be given and so on. With so many possible variables, is there any way to help organize all these decisions and simplify the selection marketing mix? The answer is The customer is contact by the four Ps.There are additional three Ps newly invented by the marketer. An important point to note is the customer should be the target of all marketing efforts but it is not the part of the marketing mix. Hence, Lords ice-cream parlour follows this concept and places its customers in the centre. Product for Lords ice-cream parlour the Product decisions spread around developing the right product for the target market and this includes not only the physical unit but also features, brand name, company image, value and many other factors.Apart from maintaining a top-flight quality through its imported ingredients and bringing regular production consultants from Belgium, Denmark and Holland, the units separate R department regularly can analyzes new products through its market research to answer questions as At what price consumers would like to buy the product. Flavours and essence to be used. Consumers feedback. Analyze other markets. Lords ice-cream parlours Product li ne includes characteristic ingredients, as some are vanilla flavour with chocolate hazelnut or milk coating, some may have crispy flakes, others include cashew nut.On the other hand, to provide a taste of refreshment there are flavours including coffee, strawberry, mango, with almonds and ripples. Each of these delicacies has positioned itself as a unique brand in consumers mind. These eclectic tastes have been able to exceed consumers expectations resulting to delightful consumers and thus to the creation of a powerful company image. Apart from that Lords ice-cream parlour also can operates through some trolleys for extending its reach to various consumers at different locations as schools, alleys, streets, parks e. . c. Consumers Availability of scratch cards through purchase of certain flavoured ice creams enables consumers to obtain different types of gifts such as iPod, mp3 player can be achieved by them. Also last year (2008) every purchase of Macho had a Kit Kat free. *PEOP LE* The management of the ice-cream parlour is very particular about the selection of the people. They are hiring only the motivated, energetic and passionate people. The parlour has on job training and skill development continuous activity by which employee can be skilled.But from next year every after three months they are going to arrange a training and motivation program for the improvement of their business. *12. MARKETING* Growth Strategies Lords ice-cream parlour, like any other company, in order to maintain a stable growth rate, focuses on reviewing the existing operations, the evaluations and the creation of the new products by not only manufacturing the highest quality products but also delivering the product by maintaining this high quality. In pursuance growth, Lords ice-cream parlour considers both its market and its products.It then decides whether to continue what it is doing only do it better or establish new venture. The product/market growth matrix depicts this option for Lords ice-cream parlour. The matrix is divided into four possible combinations of old and new products with old and new markets. drawline drawline drawline drawline drawline drawline drawline drawline drawframe MARKET PENENTRATION Here, Lords ice-cream parlour tries to sell more of its present products to its present markets by the help of supporting tactics, which might include spending on price, promotion and packaging.For example, Lords ice-cream parlour regularly alters its ice cream packaging, and provides occasion oriented price cut. MARKET DEVELOPMENT Lords ice-cream parlours market development strategy is evident by its entry to an entirely new area Marble Arch. In future, Lords ice-cream parlour plans to expand in other parts of London and are undergoing business consultancy of possible expansions in Netherlands. produce DEVELOPMENT Nothing is more important to a companys long-term survival and growth then the successful introduction of new products.By flipping through Lords ice-cream parloursbook of achievements, it is evident that one of prime reasons for success has been due to constant introduction of new products. The exquisite Macho, energetic Mega, which hit the markets around two years back, were and are a real feast for ice cream lovers. The very recently introduced Kulfi has once again placed Lords ice-cream parlour to as being a peoples brand providing a world of great taste, and which deciphers Lords ice-cream parlours drive to maintain satisfaction of all segments of the market. Lords ice-cream parlour has, for the time being confined itself only to the ice cream business. Any diversification related businesses would be future-wise. The Marketing Budget drawframe Recommendations In spite of Lords ice-cream parlours remarkable success certain loopholes in the marketing aspects has been detected. After my research I came up with some possible steps and solutions that we would like to state below. Competitors are an important co mponent of the task environment. Lords ice-cream parlour should pay heed to its potential competitors rather than treating them as mere counterparts. Lords ice-cream parlour should involve in backward vertical integration to lower the cost of value creation and lessen its reliance on foreign suppliers. For instance, incidence such as credit rating crunch may hinder the flow of supplies in the production process when there is excessive habituation on foreign inputs. To enhance the maturity level, Lords ice-cream parlour should undertake the task of sponsoring more social events such as concerts, cricket, football and other such tournaments to retain its popularity in the younger market segments.Emphasize should be given on TV commercials, to capture a greater share of the market. A proper customer help line should be developed to mitigate the further needs of the customer. Conclusion From an extensive marketing analysis of the ideas and marketing concepts at work in the operation o f Lords ice-cream parlour, it is possible to obtain an insight to the essential marketing practices adopted by the company.Adherence to proper marketing strategies in terms of company objectives, paying heed to target consumers and potential and existing competitors, close relationship and liaison with distributors and suppliers ensure tangible market capitalization as indicated by Lords ice-cream parlours market share of 63% in the ice cream industry. Evidently by virtue of its unique product attributes, high quality, exquisite and mouth- irrigate varieties of ice creams, attractive and distinct packaging, Lords ice-cream parlour has been able to ensure marketing excellence and enhance its competitiveness. straight offs fiercely competitive environment compels Lords ice-cream parlour to pursue the right set of pricing strategies, policies for effective segmentation and targeting, market oriented structures of distribution and retailing, which lies at the heart of the companys suc cess. Its new sales and distribution flow enables the company to achieve its desired goals. In its quest to create satisfying customer relationship and optimizing the performance of the entire system, Lords ice-cream parlour has resorted to a system of timely distribution.With the combination of effective promotional campaign and advertisement in various media, it is able to retain valuable customers and inform them about ternary brands they are offering at present. Appendix This questionnaire is conducted only for educational purposes (For Customers Only) Name Profession.. What is your age group? How long you are coming to this ice-cream unstable? Why have you chosen this place? Do you think Lords ice-cream parlourdone a better job for their customers? What do you think about the product image of Lords ice-cream parlour?If you are satisfied then which factor- Do you think that Lords ice-cream parlouris one of the top ice-cream parlous? Manufacturing and Warehousing Capacity Manu facturing Capacity 530 liters per day. Warehousing Capacity Warehouse No 3 Nos Warehouse strain Capacity Factory 1,000 liters Technology and its usage of modern equipment implement Supplier Mark Italy Tetra pack (Hoyal), Denmark Sabore, Denmark Hass, Austria Machine Model Free mark 1100, Italy FM 3000, FM 6000, Italy SL 600, Denmark Cone Baking Hass, Austria Chocolate Making Macentyre, UK.