1

PREFACE

Newly established companies need to develop a special marketing strategy in order to focus a

Daisy Blue
marketing that already has well established players in the market. This adaptation helps them
to secure good market share. The new ice cream company that we have established is named
as ‘Daisy Blue’ ice cream Company.

Ice Cream
Daisy Blue Ice Cream divides its manufacturing in three parts: the take home range, the
impulse range and the kids’ range. The take home range consists of Daisy’s family tubs, the
Viennetta range of ice cream desserts and the premium Carte D’Or tubs. The impulse range is
includes brands like Malinul,AJolero
Comprehensive Marketing
and Choco-two. Planis specially formulated
The kids range
for little taste buds – and shows an understanding of children’s nutritional needs, such as the
Milk Mountain which contains 70% milk.
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INTRODUCTION TO ICE CREAM INDUSTRY

Ice cream is a frozen product made from a combination of milk products and eggs, sugar,
corn syrup etc. It was once considered a stylish item of food is now becoming increasingly
popular among the people. There were only four well known brands manufactured in
Australia namely IGLOO, POLKA, ROCCO and YUMMY.

Daisy Blue Ice cream

As Daisy is a new company in the market so we are trying to get the best technology of
production, hygiene and safety in manufacturing within our budget. Daisy’s first time ensured
the access of ice cream at customer doorsteps. Daisy believes in innovation and it is the key
to success for any company.

Daisy believes that the true success of the Ice Cream business lies in the range of products
and of course due to the taste and quality of their products, which proves the test of time and
remains popular with the consumer throughout the decades. Daisy Ice Cream is usually
somewhere mid range flavor wise. It is neither too rich nor too bland and the soft texture will
make it a favorable ice cream for a big market proportion
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MARKET VIEW OF DAISY BLUE ICE CREAM

The annual consumption of ice cream in Australia is 150 million tons, which includes both
branded and unbranded. The total sale of ice cream in Australia is approximately $ 6 billion
of which 40 percent belongs to unbranded while 60 percent belongs to branded category.
(Solomon, Bamossy, Askegaard, 2002)

Fig. 1

Besides having a couple of brands, Daisy was also in competition with the ordinary water ice
and ice cream makers. Projecting and advocating the use of hygienic and quality ice cream.
Daisy has also brought ices and lollies in the market that were affordable to low income
groups too. Daisy is focusing on this strategy to expand its target market. This makes us to
compete with other small un branded businesses. We believe in educating the consumer of all
ages and all income groups to create awareness of hygienic quality ice cream which will
result into ascending demand for Daisy Blue ice cream country wide.
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DAISY BLUE’S TARGET MARKET

Traditionally, the target market of Daisy Blue has been, more or less, similar to the target
market of Pepsi. Daisy’s target market can be defined as the lower middle, middle, upper
middle; fun loving, energetic and vibrant with ages six and above; and single, married and
married with children. All the previous marketing activities of Daisy have distinctly
displayed an orientation towards this target market.

The campaigns of Daisy Blue will be focusing on children, teenagers, young adults and adults
– all with their trademark fun loving and vibrant twist. This current campaign appears to be
mainly geared towards teenagers and young adults, with secondary focus on children

The market for Daisy ice cream can be divided into three main categories:

1. Ice Lollies:
These are the ice creams, which are water based refreshment products, containing water,
fruity flavor and fruit juices for example, Salse cola, Jetty sport.

2. Dairy ice cream:

These are the ice creams, which contain real milk, butter or fresh cream, real chocolate.
These include Malinul and Choco-two.

3. Non-diary ice cream:

These are the ice cream containing pure refined vegetable oils, real fruits and nuts. For
example, Nutty bar and Pop’s cone.
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MARKET SEGMENTATION

Market segmentation is the process of grouping a market into smaller subgroups. This is not
something that is arbitrarily imposed on society: it is derived from the recognition that the
total market is often made up of submarkets (called segments). These segments are
homogeneous within (i.e. people in the segment are similar to each other in their attitudes
about certain variables). Because of this intra-group similarity, they are likely to respond
somewhat similarly to a given marketing strategy. (Perreault, McCarthy, 2002) That is, they
are likely to have similar feelings about a marketing mix comprised of a given product, sold
at a given price, distributed in a certain way, and promoted in a certain way.

Daisy has divided the market on the basis of the following:

1. Demographic segmentation
2. Psychographic segmentation
3. Behavioral segmentation

Demographic segmentation: This includes the division of the market on the basis of age,
income, occupation and many more. Daisy has categorized its product lining into adults,
teenagers and kids.
1. Adults category: Malinul and Nut bar
2. Teenagers category: Poppy Cone, Choco-two
3. Kids category: Maxi, Lolli Pop

Adults usually enjoy ice creams like Malinul and Nut bar as it is very fulfilling. With all its
rich and crunchy nuts, Malinul serves as the perfect delight for the evening. On the other
hand teenagers are in the middle that probably can enjoy a bit of everything. Kids are very
impatient and impulsive, hence for them ice cream like Maxi and Lolli pop just serve right.

Psychographic Segmentation: In this the market is divided on the basis of social class,
lifestyle and personality characteristics. Daisy has mainly focused on the lower middle class,
upper middle class and middle middle class. For instance ice cream which usually comes in
family packs of a variety of flavors and others like Expert’s Choice and Selection.
 7

Behavioral Segmentation: In this segmentation, market is divided on the basis of consumer

knowledge, attitude, use or response to a product. Daisy ice cream currently has a 22% share
in the market which is really good as a relatively new entrant and this percentage is also
growing. Keeping this fact into consideration, in Sydney about 10% of the population enjoys
Daisy ice cream and in other districts of Australia respectively. This shows that Daisy has a
very prospective future ahead if we stick to the marketing and business plan accordingly.

Fig. 2

On the basis of flavors Daisy’s market today offers strawberry, chocolate, mango,
butterscotch, a number of fruit flavors, dry fruit flavors like Nut-cream, Pista etc. The
market is totally dominated by Vanilla, Strawberry and Chocolate which together
combined 72% of the market followed by other fruit flavors. On the basis of packaging
the market can be divided into four segments Cones, Cups, Sticks and Take-Aways.

Victoria
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DAISY BLUE MARKETING POSITIONING

Positioning is basically how the target market defines a particular brand in comparison to
its competitors. Positioning is important because if a particular brand stands out as a
comparison to its competitors, then people would be more attracted towards it and
perhaps would even become brand loyal—a technique that will definitely enhance brand
equity.

Love and togetherness are the notions of Daisy Blue and this will definitely promote
innovations in the products using traditional flavors. The nutritious taste given through
Big Silky, Saddle pop and many other flavors is offered only by Daisy Blue. Definitely,
Daisy Blue has created an image that offers pure quality ice cream with taste.

After realizing segmentation and target market the basic objective of Daisy Blue is to gain
market leadership by delivering quality taste, satisfaction, value and convenience that can
be fulfilled by different marketing strategies. Daisy Blue positions their product to be
distinct, superior and affordable from its competitors.

It provides a close feeling of bondage embellishes the moments and adds vitality to life.
Its intensive distribution is unmatched as it is available at all the outlets ranging from the
convenience stores to super stores. The taste is so scrumptious that it makes, people forget
their worries, and happy.
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DAISY BLUE LIFE CYCLE

Daisy Blue

Developme Introductio Growt Declin

Matu rity
nt n h e
stage
stage stage stage Stage
Fig. 3

The curve in the above diagram shows the volume of sales over the time. The product
lifecycle goes through many phases and involves many professional disciplines and requires
many skills, tools and processes. Product life cycle (PLC) is to do with the life of a product in
the market with respect to commercial costs and sales measures and its management is more
to do with managing descriptions and properties of a product through its development and
useful life, mainly from a business engineering point of view. (Perreault, McCarthy, 2002)

The product life cycle of is in between Introduction and Growth stage where Daisy Blue
needs a lot of publicity and costs are very high whereas, sales at a lower volume constituting
low profits. Daisy Blue is established in the market with discretionary price strategy leads to
competitive offerings by competitors like Igloo and Hico. At this stage Daisy Blue has built
feature diversification in their products like different flavors of Sundae, flavors of selection,
nutty Malinul and Choco two. Daisy Blue has also created brand differentiation from other
brands like Igloo through competent premium quality.
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MARKETING STRATEGIES

Analysis of Daisy Blue with BCG Matrix

BCG Matrix method of Daisy Blue evaluates strategic business units in terms of its market
growth rate and share. Strategic Business Unit i.e. Daisy Blue is classified with the help of
Star, Cash Cow, Question Mark or Dog.

High Relative Market Share Low

?
High

Market Daisy Blue

Growth
Rate

Low

Fig. 4

Daisy Blue is right now a question mark in the market and does needs extra money to
advertise and attract customers. It is not exhibiting great return on the assets as it’s new in
the market, thus generating less cash than its consuming. Daisy Blue has reached the
position of “Milking” where investments are relatively lower to returns.
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ANALYSIS OF DAISY BLUE WITH PMG MATRIX:

Fig. 5
Market Penetration:
Daisy Blue entered into the ice cream industry of Australia by acquiring the giant
competitor, POLKAT to link with mass distribution channels. Blue Daisy also attracted
non-users by its advertising and promotional campaigns.

Product Development:
Daisy Blue Sundae is one of the examples of product development. Before that there was
no concept of nuts and fruits in ice cream by any branded ice cream company.

Market Development:
Malinul was first targeted to the upper middle class only but now Daisy Blue has taken
the initiative of selling this flavor in the lower class by decreasing its size and reducing
the cost.

Diversification:
Daisy Blue has also introduced “Expert’s Choice” consisting of Vanilla, Strawberry and
Chocolate flavors targeted to the upper class of Australia.
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DAISY BLUE’S COMMUNICATION PLAN

The essential process of communication involves sending messages to potential

consumers using a variety of methods in order to create awareness and understanding of
why people should purchase a specific product or service. If the method of
communication is the most appropriate, then there is a possibility that the potential
consumer will buy the product or service.

Advertising
Advertising is just one element of the 'communications mix'. The simple aim being to
raise awareness levels, generate interest and to enhance brand development amongst
consumers. 'Any paid form of non-personal presentation and promotion of ideas, goods
and services by an identified sponsor.' (Anderson, Carol, Vincze, 2000)

Daisy Blue’s advertising campaign is currently focused on making short duration ad’s
which would not cost much as the media production and airing those advertisements
require a lot of marketing revenue and at this stage it’s not possible for Daisy Blue to
invest that much in advertisements.

Daisy Blue Aims of advertising

• To inform potential customers and users of the existence of the product which can
be valuable to the prospective customer
• To remind existing users of the continued existence of the product and
improvements.
• To regain lost customers and accounts.

Newspapers and magazines

Printed material makes up the largest group of media in the UK, which includes
newspapers, magazines, the trade press and professional journals. This type of media
allows the advertiser to communicate with a specific group of people or with those that
have a specific interest. (Solomon, Bamossy, Askegaard, 2002)
One of the benefits of the printed media other than being able to reach the target audience
is that messages can be read repeatedly. Magazines for example are left around for days,
weeks and even months. Newspapers have a shorter life span but have a higher
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circulation. Many newspapers now provide various supplements such as the Times and
Daily Telegraph who have several pages on travel and leisure in certain editions.

The Brochure
Brochures are a very important element in the travel and tourism industry and fulfill
several communicating functions within the communication mix. The brochure is the
main influence on the customer's decision to buy. Tourism is an intangible product, which
customers will purchase before undertaking the experience. The brochure therefore will
become the principal means of both informing them about the product and persuading
them to buy it. For tour operators, the brochure represents a significant part of the
marketing budget.

Television
Television advertising is very expensive and only large organizations have the resources
to put together an advertising campaign on television. The costs vary widely depending
on times of day and the program, but can be as much as £50,000 for a 30 second slot.
(Anderson, Carol, Vincze, 2000)
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MARKETING MIX

A marketing strategy is a process that allows an organization to concentrate its resources

on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. The marketing strategy of Daisy Blue comprises of a combination of how it’s
distributed, promoted, placed and priced together.

Price: Price is how much the product is selling for or it is the amount of money that is
charged for something of value. This is based on your cost and product value to potential
customers. Personally I think that price is very important and will definitely attract
customers with the attraction of cheap prices.

The price of Daisy Blue ice cream is quite high with respect to the purchasing power of
the people. But at the same time it has also low price product to compete with the
unbranded sector of ice cream. The affordable price of Daisy Blue ice cream ranges from
$ 1.5 to $ 2.30.

Place: Place deals with the location on ones business or distribution place for the
products. I would have to argue that a business can overcome a bad location if they are
marketing the right location. The place is the making of goods and services available in
the right quantities at the right locations.

Daisy Blue provides their products through the application of intensive distribution
strategy. This means that its ice cream flavors are available at almost all the convenience
stores making it easily accessible for people. Apart from that, they are excellent in frozen
distribution.

Promotion: Promotion is the communicating of information between seller and potential

buyer or others. It involves thoughtfulness such as objectives, promotion blend,
salespeople, advertising, sales promotion, and publicity basically promotion is advertising
to potential customers in and effort to create an awareness of one’s business.
The promotion of Daisy Blue ice cream is very strong. They believe in advertisement at
the point of sale meaning they include their displays at the stores which attract customers
 15

towards its purchase. Daisy Blue is the first ice cream brand which has introduced a price
card menu.

This has definitely enhanced its promotion campaign. Coming to the television
advertisement it is very rare. Only recently has the advertisement for Daisy Blue selection
been launched. Indeed, the promotional activities are mutually planned and agreed. They
give specially designed freezers and also provide maintenance and replacement facility.

Product: Product is the goods or services that a business offer and they are distinctive
and different, better in quality and easier to use. In my own view, the product or service is
one the most important facets of a thriving business.

Daisy Blue has defined its product lining into three categories:
1. Impulse
2. Dessert
3. Food service

Impulse: This includes Choco Two, Feasta, Paddy pops and Jetty Spot

Dessert: This includes take Cassattay, Tutti Fruity, Almond crunch, Strawberry Tickles
and Vanilla Chocolaty.

Food Service: This includes ten liters packs available in Hotels and Bars (14 flavors)
 16

DISTRIBUTION OF DAISY BLUE ICECREAM

Distribution is one of the main aspects of marketing in which a middle man serves as a bridge
between the manufacturer and the retailer. Traditionally distribution has been seen as dealing
with logistics as to how to get the product or service to the customer.

The distribution of Daisy Blue consists of two parts:

1. Primary Distribution
2. Secondary Distribution

Primary Distribution: Primary distribution includes the inbound logistics which involves the
transferring of ice cream from factory to the cold storage and then to the Concessionaire.

Factory Floor  Factory Cold Storage Concessionaire

Secondary Distribution: This type of distribution has two channels which is very essential to
boost the sales of the company. Daisy Blue distributes its products through refrigerated cycle
retailer to the customers and also through refrigerant vehicles. In the second option, the
retailers are involved as addition.
 17

Concessionair
Cycle
Refrigeran
Retaile
Custome
Retailer
t Vehicles
ers
 18

Fig. 6

Figure 7. Cycle Retailer

Fig. 8. Daisy Blue Marketing Distribution

As seen from the above graph, Daisy Blue comparatively occupies a smaller market share as
compared to other ice cream brands in the market. Wall’s is available all over Australia while
Yummy is available in Queensland, Igloo in Victoria and Daisy Blue in New South Wales.
After Wall’s the second brand which has a good market share is Igloo which is the reason
why it is Daisy Blue’s main competitor.

COMPETITOR’S ANALYSIS

This is perhaps the area in the marketing environment which is most confusing and requires a
comprehensive study. Therefore with the strategic objectives and quality products, Daisy
Blue has the potential to capture the market.

WALL’S and IGLOO:

Wall’s is the leader in the ice cream market while the rest are the followers like Igloo.
Following are the products which were introduced by IGLOO as a reaction towards similar
 19

products launched by Walls which will help us to understand the competition faced by Daisy
Blue.

Walls Igloo
Donut Holo

Chocbar Chocbar
Chocdip
Dipsy

Jet Sport Tropica, Imlee Lolly

Vanilla Stick Cream Pop
Big Slice Kool Kulfi
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Pop Cone King Cone

Sundae Fundae

Cornetto Royal Cone

Cassatta Hattrick
Fig 9.
This shows how IGLOO to stay in competition with Wall’s launched similar flavors of ice
cream. The basic difference is that they launch it at low costs but the basic quality is not up to
the expectations. The edge we have as Daisy Blue is that our quality is totally unmatched
with our flavors ranging from Vanilla, Chocolate, Strawberry and many more. On the other
hand, Wall’s is indeed the market leader which has created its own follower ship and we need
good marketing efforts to compete both Wall’s and Igloo.

SWOT ANALYSIS

Strengths
1. Daisy Blue is a new market entrant so it can design its own policy.
2. Latest and sophisticated technologies i.e. cold store layout.
3. Daisy Blue have strong distribution network.
4. Efficient stock monitoring.
5. Exclusive discount offered.
6. We have range of different ice cream with many flavors.

Weaknesses
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1. High cost.
2. Daisy Blue has very slow speed in market.
3. Daisy Blue could not provide to rural customers.

Opportunities
1. Demographic changes.
2. Life style changes.

Threats
1. Change in customer preferences.
2. Unbranded competitors present in market.
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Conclusion
This marketing analysis for Daisy Blue gives an in depth analysis of the current market
scenario and the positioning of Daisy Blue. Secondly we also came to know the market share
and which competitors are currently leading the market. As a result of the research
undertaken I feel that advertising alone is not enough to generate sales and a marketing
campaign must look to the other tools within the communications mix to generate and assist
purchase. However despite this advertising is still the most senior element of the mix and the
other communication tools merely compliment advertising as opposed to being effective
enough to replace advertising. Daisy Blue should be focusing more on gaining more and
more market share and be innovative in bringing out something new in the market like
different new ice cream varieties and packaging. It should also focus to cut off manufacturing
and distribution costs as most of the new entrants in the ice cream industry face high costs in
the beginning.
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REFERENCES

Anderson, Carol H and J. W Vincze, (2000), Strategic Marketing Management, New York:
Houghton Mifflin Company.

Logos and designs retrieved from

http://www.thelogofactory.com/logo_design_galleries/2006_6.html on 15th July 2009

Perreault, Jr. W.D. & McCarthy, E. J. (2002), Basic Marketing: A Global Managerial
Approach, 14/e. New York: McGraw-Hill.

Solomon M., Bamossy G., Askegaard S., (2002) Consumer Behavior - A European
Perspective, 3rd Edition, Prentice Hall