Chapter 8 - Strategic Target Audience

Chapter Eight: Strategic Target Audience 

    

8.1   Proposed Primary Target Audience

8.1.1 Demographics

a) Age

17 – 23 years old

b) Gender

Male and female

c) Education

High school, college, university

d) Occupation

Students

e) Income Range

- Students Allowance (RM400 – RM1000)

f) Race & Ethnicity

All races and ethnicity

g) Geographical Location

Urban and sub-urban areas

8.1.2. Psychographics

a) Perception

- Loves to have a fun time with friends and family while enjoying a healthy dessert that is both delicious and nutritious.

b) Learning

- Digital and social media influences such as Facebook, blog reviews, websites and promotions offered online.

- Influence from  recommendation by friends and families.

c) Motivation & Needs

- Looking for tasty and healthy dessert options to try out and enjoy it with friends and families.

- Particular about their physical figure.

 d) Attitude & Personality

- Loves to socialize and have a joyous life but is particular about the  type of food they eat.

- Cheerful, out-going, and adventurous and love to try new food.

e) Lifestyle

- Lives a healthy eating lifestyle and  keeping themselves in shape.

- Likes to be carefree and loves to spend  time with families and enjoys gatherings with friends.

8.2. Proposed Secondary Target Audience

8.2.1. Demographics

a) Age

24 – 29 years old

b) Gender

Male and female

c) Occupation

White collar workers , professionals.

d) Income Range

- White collar workers Income (RM1500 – RM3000)

- Professional workers Salary (RM3000 – RM6000)

e) Race & Ethnicity

All races and ethnicity

f) Geographical Location

Urban and sub-urban areas

8.2.2. Psychographics

a) Perception

- Enjoys family outings and loves to treat their children with quality desserts.

b) Learning

- Print media such as newspaper and magazines; digital and social media influences such as Facebook, blog reviews, websites and promotions offered online.

- Influence from recommendation by co-workers and friends.

c) Motivation & Needs

- Looking for fun and exciting healthy dessert options to try out with loved ones and colleagues.

d) Attitude & Personality

- Loves to socialize and have a joyous life and are more inclined to purchasing healthier dessert products during family day out.

- Lively, out-going, adventurous and love to try new food.

e) Lifestyle

- Living a healthy eating lifestyle and exercises a lot.

- Active life routine and may have a stressful working life but knows how to take a break from it.

Chapter 7 - SWOT

Chapter Seven: SWOT Analysis

7.1   Strength

·         Freshly made on a daily basis and with quality ingredients that are imported and of fresh fruits.

·         Stickhouse method of producing gelato is different with the rest. Stickhouse gelatos do not contain any air AT ALL (ZERO air is added), retaining all the flavor and ingredients, thus making it 100% genuine and natural.

·         Customers can customize their gelato by choosing their own choice of dipping and toppings which make it more personal and fun.

·         Stickhouse products have flavors  suitable for people who are intolerant to gluten, lactose and sugar.

·         Stickhouse products are ideal products for children for their nutritional values. It is  a healthy and original alternative snack for children

·         The gelatos are served on a stick instead in a cup, which is very different than the other gelato in the market.

7.2   Weakness

·         Price is higher than competitors.

·         The brand still very new in the market, not many people know about it yet.

·         They only have 3 outlets for now in Malaysia, and all 3 of them concentrated at Klang Valley area.

·         Some people don’t like to eat their ice cream on a stick because it will melt.

7.3. Opportunities

·         Hot weather seasons give way to high demands of this brand

·         Open air events and activities would give way to this brand to sponsor and promote

        their products indirectly would benefit both of them equally.

·         Health campaigns would give way to this brand to sponsor and do promotion to

        increase awareness.

7.4 Threats

·         Rainy seasons would bring down the sales for ice cream products

·         Flu and virus would be a result of less ice cream demand

·         Competition from other top ice cream brands who already has a stable and huge

        number of loyal customer overshadows other emerging brands

·         Publics’ continuous belief that all ice cream is bad for the health and if there are

        healthy ones available, they are just not as delicious

Chapter 6 - Competitive Situation

Chapter 6 – Competitive Situation

6.1   Direct Competitors

6.1.1.    Gelato Fruity

Gelato Fruity was founded by Ms Vivian Yap in the year 2004. She has had experience in the retail industry for 20 years and decided to open her own Gelato ice cream business. The first Gelato Fruity outlet opened in 1 Utama Shopping Centre. Gelato Fruity serves quality gelato to customers that are made using Italian formulation as well as a combination of premium grade ingredients. They serve funky flavors and also fruit juices and milkshakes. The store concept uses a lot of fruit graphic elements that are bright and colorful like the logo. Gelato Fruity currently has 5 outlets at around the Klang Valley area. They are slowly expanding to opening more outlets in the months to come as mentioned in their website.

Type: Gelato Ice Cream

Price Range: RM6.80 (single scoop), RM9.80 (double scoop), RM10.90 (triple scoop)

Strength:

- Has a variety of fruit-based mixtures and ice cream

- Very eye-catching in terms of colors compared to other ice creams

Market Share: It is progressively gaining a position in the gelato market.

Product Range: Gelato, fruit juice, milkshakes

Positioning: Gelato Fruity is a Gelato retail that produces excellent quality gelatos made with Italian formulation and a combination of premium grade ingredients to serve customers.

6.1.2.Baskin Robbins

Baskin Robbins was first established in 1945 in Los Angeles. Its founder Mr. Burt Baskin and Mr. Irv Robbins initiated their outlet with originality and good philosophy of fun into their ice cream store. They managed to gain public interest and extended to eight outlet stores in just 3 years. Baskin Robbins is one of the largest ice cream ice cream retail in the word. It currently has more than 6,000 shops in 35 countries. Not only that, they offer over 1,000 flavors of ice cream.Currently, all ice cream products sold in Malaysia are imported from the United States for the reason of sustaining the taste of its products and maintain a kind of consistency. Baskin Robbins has a large fan based of very loyal customers since. They are constantly coming up with new promotions and ads to gain public attention and maintain their loyal customers.

Type: Premium Ice Cream

Price Range: One regular scoop (RM7.50), Double regular scoop (RM14.00), Triple regular scoop (RM21.00)

Strength:

- Has a very large fan based who are very loyal to their products

- Serves over 1,000 flavor selections to pamper customers’ taste-buds

Market Share: Has one of the largest market and one of the top ice cream retailers in the world.

Product Range: Ice creams, sundaes, waffles.

Positioning: Baskin Robbins is a premium ice cream brand  that does not only pamper you with its variety of flavors but wants to show customers how to have fun while they are it.

6.1.3.Geláre

Geláre is an Italian word that means “to freeze” and where the ice cream is originated. Geláre ice creams are heavy and dense with no overrun. In achieving this, they use a special machinery to churn the ice creams. Their ice cream uses only natural ingredients with absolutely no artificial flavoring, coloring or preservatives. This is inclining with their brand tagline which is“all natural ice cream”. Their ice cream products are a combination of Italian and American ice cream with an Australian twist into it, thus creating the ultimate ice cream. Geláre is a super-premium ice that is produced with fresh milk and cream as well as the best ingredients and manufacturing technology.

Type: Super Premium Ice Cream

Price Range: Single scoop (RM7.90)

Strength:

- Very thick and dense ice cream that is very delicious

- Best waffles to have with the ice cream

Market Share: Relatively new but gradually expanding in the gelato market.

Product Range: Ice cream, frozen yoghurt, sorbet, waffles, sandwiches, coffee & beverages

Positioning: Geláre is a super-premium ice cream with real flavor and no artificial ingredients which guarantees to deliver a smile on the face of every ice cream lover.

6.1.4.Gelatissimo

Gelatissimo is Australia’s more popular gelato. They are made fresh daily by a genuine family recipe and is known to be award winning. They are made with the best ingredients to produce the highest standards of gelato. Their premium dairy and sorbet flavors are made precisely to make only the best quality of their products. Gelatissimo gelato is very smooth, rich and simply irresistible. It has now over 30 stores that are international and local. Gelatissimo has extended their market of retail to Asia countries such as Indonesia, Singapore, Malaysia, Philippines and more in the planning. They have their own unique concept store to provide the best customer experience. They have many outlets available in the Klang Valley and 35 flavors to choose from.

Type: Gelato Ice Cream

Price: Single scoop (RM8.30), One flavor cup (RM8.90), Two flavor cup (RM12.90), Three flavor

cup (RM16.90)

Strength:

- Award winning gelato made using an authentic family recipe.

- Concept store gives an Italian ambience to customers while enjoying the gelatos

Market Share: It is growing well as the demand of gelato rises up in the market.

Product Range: Gelato, sorbet and other types of appetizers and desserts

Positioning: Gelatissimo is an Australian gelato that is very smooth, rich and simply irresistible that gives the ultimate satisfaction in an ambience of the true Italy.

6.1.5. Gelatomio

Gelatomio is one of Malaysia’s known gelato brand. It is a brand of Italy and has expanded its business in Malaysia with the reason to enlarge their market scope throughout Asia. Since then, the market for gelato in Malaysia turns out to be a very good deal for Gelatomio to increase their business. Their gelato products can also be found in many leading supermarkets and served in 5 stars restaurants and hotels since the year 2005. Gelatomio makes fresh gelato with natural ingredients that are strictly no animal fat or color and preservatives used. They also have 50 flavors of ice cream with new ones coming up.

                                                        

Type: Gelato Ice Cream

Price: Single scoop (RM6.60), Four scoops – the platter (RM16.00)

Strength:

- A delicious sweet treat for gelato lovers that is made from 100% natural ingredients with no artificial ingredients or animal fat emulsifiers are included

- Have been featured in a lot of newspaper and magazine articles and even in catering for hotels and events

Market Share: It is growing steadily in the gelato market and the brand has a large number of loyal customers

Product Range: Gelato

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Positioning: Gelatomio is a healthy temptation gelato made of 100% natural ingredients and highly fresh and 99% fat free.

                             

6.1.6   Haagen Dazs    

          

It’s the world’s first super-premium ice cream, introduced in 1961. That’s when lifelong ice cream entrepreneur Reuben Mattus (who 40 years earlier helped his mother sell fruit ice pops on the streets of New York City) began selling Häagen-Dazs Chocolate, Coffee and Vanilla ice cream in pint-sized containers throughout New York City. From the beginning, Häagen-Dazs has been special. Its mouth-watering flavors, dense, creamy texture, and innovative products all reflect a deep commitment to quality.

Innovation has been a key ingredient in the Häagen-Dazs success story. On Valentine’s Day Eve 1986, Häagen-Dazs unveiled an ice cream bar for adult tastes. In 1996, after years of testing and sampling, the brand launched Häagen-Dazs Green Tea ice cream – the taste modeled on a select variety of green tea that’s been savored in Japanese tea ceremonies for centuries. More recently, Häagen-Dazs Crispy Sandwich™ (an indulgent ice cream sandwich) was introduced to Europe in 2004.

Not surprisingly, word-of-mouth passion for Häagen-Dazs has been strong from the beginning. When the first Häagen-Dazs Shop opened in 1976, it was an immediate success. International expansion followed six years later.Now sold at retail and in more than 900 Häagen-Dazs Shops in 50 countries, Häagen-Dazs ice cream is savored around the world.

Type: Super Premium Ice Cream

Strength:

- Use the finest quality ingredient to craft the ice cream.

- Has a very large fan based who are very loyal to their products from all over the world.

Market Share: Has one of the largest market and one of the top ice cream retailers in the world.

Product Range:  Ice cream, sorbet, frozen yogurt, sundae, stick bar, ice cream cakes and treats.

Positioning: Haagen Dazs is a legacy of innovative indulgence  super premium ice cream remains true to its passionate commitment to quality, creativity and, above all else, taste     

6.2. Indirect Competitors

6.2.1. Famous Amos

                                                       

Famous Amos is a renowned brand that is famous for their wide variety of mouth-watering cookies and gift packaging. The brand was founded by Wally Amos in the year of 1984. All of its chocolates were imported and packaging gifts were made uniquely. The first outlet in Malaysia was opened in Sungei Wang Plaza. This very successful hot-baked store has over 60 outlets in shopping malls and airports in Malaysia. Famous Amos sells even more like hot cakes during festive seasons in Malaysia. In addition to this, Famous Amos also includes a range of their own ice cream products at selected outlets that have gained many customers attention.

Type: Confectionary

Price Range for Ice Cream: One scoop (RM5.90), two scoops (RM7.90), three scoops

(RM10.90)

6.2.2. Secret Recipe

Secret Recipe is a famous lifestyle café since the year 1997. It has spread its brand name across many countries including Malaysia, Singapore, Indonesia, Thailand, China, Philippines,Brunei and Australia. They are known for their fine quality of cakes, including dining food and services. Secret Recipe is one of the largest café chains in Malaysia to this day. They are committed to serve good quality of all types of food to customers. There are a variety of 20 fusionfood, 40 cake creations and pastries, and not forgetting the range of ice cream flavors offered in their café. They have over 250 cafes throughout the region and still continuing to grow in terms of

recognition and success in the industry.

Type: Food Café

                                           

                                                                                                                         

Chapter 5 - Industry and Marketplace

Chapter Five: Industry and Marketplace

5.1   The Industry

5.1.1   Definition of the Industry

The food and beverage industry is widely expanding its sector year after year. Its focus is in the making and delivering of foods as well as the concept behind every production. In assuring consumers satisfaction and quality guaranteed production, companies are bending hastily to keep up with the speed of change according to consumer demands. They are further subdivided into groups that comprises of meat, fish, fruit and vegetables, fats, dairy products, grain mill, starch products and prepared animal feeds. One of the largest divisions of the food and beverageoperations is the cafes, bars and restaurants.     

Internationally, the food and beverage sector is one of the many important industries in the world economy and is rated approximately at 4.22 billion and 4.4 million people are employed under it. In addition to that, some small group of multinational companies are leading the industry and running globally. However, a great deal of small and medium-sized firms are manufacturing for the local markets.

In Malaysia, its food and beverage industry is rather small as compared to the other countries which are at 2.75% on average. With this in mind, Malaysia is more reliant on imported food and consumer products regardless of their potential. Consumers spend about 20% of their income on food. Malaysia’s food consumption is estimated to increase 9.4% in 2012 in relation to Malaysia’s vision of becoming a high income society and economic growth.

5.1.2. Shape of the Industry

The food and beverage industry contributes to one of the major economic growth. Its development growth has been consistent annually. They are also expected to increase at 3.5% by 2014. Europe currently has the largest share in the global food and beverage industry along followed by US. China and India is presently the major contributor or raw materials to the food and beverage industry.

The main difficulty faced by this industry is the rising of food prices, transportation cost for oil consumption causing a decline in consumer expenditure. Even so, the food and beverage industry are less impinged on as compared to other industries since food product is vital to consumers. With this in mind, the food retail industry is expected to rise from $3.9 of 4.8% between 2008 and 2013 to $5 billion.

Malaysia’s food industry is as diverse as the multi-cultures of Malaysia, with a wide range of processed food with Asian tastes. The food processing industry is predominantly Malaysian-owned. It is estimated that the present global retail sales in food products are worth around US$3.5 trillion, and are expected to grow at an annual rate of 4.8 per cent to US$6.4 trillion by 2020.Malaysia remains a net importer of food. In 2010, Malaysia’s food exports amounted to RM18.2 billion, while imports totalled RM30.3 billion. Malaysia exported food products to more than 200 countries and the main products exported were cocoa (RM3.8 billion), fisheries products (RM2.6 billion), margarine and shortening (RM1 billion) and animal feed (RM1.1 billion). (MIDA, 2012)

5.1.3. Development of the Industry

The food and beverage industry is expected to continue its growth, primarily focused by developing countries and their large populations and rising income. However, due to rising of fuel prices, the food and beverage industry may expect a downturn.

At present, around 58% of produced food is consumed by developing countries. It is also expected to rise up to 72% by 2050. A rise in cereal demand is predicted to increase from 2.1 billion tons to more than 3 billion. The buying shape in low cost countries is developing from small grocery stores to bigger hypermarkets and supermarkets like Tesco, Carrefour and Wal Mart.

Besides that, recent studies have said there is a shift in demographics of consumer hence the demand and choice of products they want to buy has grown towards improved health and dietary lifestyle. According to 2007 International Food Information Council survey, 75% good that are healthy and nutritious is a factor in maintaining health. Asia is said to have had the similar changes. With that in mind, the food and beverage industry has to go along with the changes to meet consumer’s demand.

5.2   The Marketplace

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5.1.2. Current Condition of the Marketplace

The market place of ice cream products are classified into the frozen dessert market. They fall under one of the subdivisions of the food and beverage industry. Frozen desserts by definition are desserts that are made by freezing liquid, semi-solid and at times even solid. Besides that, frozen desserts also have flavored water based on fruit flavors which includes sorbets, sherbets and gelatos and not forgetting the conventional milk and cream which includes most ice creams and premium ice creams.

The ice cream and frozen dessert comprises of a variety of products such as low/non/fat, regular, premium and super premium ice cream, soft serve ice cream, hard and soft frozen yogurt,sorbets, gelato and frozen ices. With that in mind, frozen dessert falls under the second level from the top of the food guide pyramid which has four levels. This would also mean they should be consumed occasionally only.Globally, the frozen dessert market is expected to reach $47.3 billion by the year 2015 in Europe. Asia-Pacific on the other hand has the fastest growing frozen dessert market worldwide.

5.2.2. Changes in Marketplace

The frozen dessert market is growing progressively in Malaysia. Mainly the ice cream businesses as they are gaining fast popularity such as Häagen-Dazs that are aiming for more wealthy and urban consumers. Ice cream cafes have become a trend nowadays with the high demand of healthy ice creams as to the current overwhelming weather consumers try to endure. At the same time, manufacturers of frozen desserts are aiming on the average income consumers to purchase bulk ice cream and multipack ice cream by companies such as Nestle and Walls.

In 2009, Unilever Holdings took over Nestlé’s position of holding the leading ice cream company due to Walls and Cornetto’s varieties of ice creams offered. In addition to that, their marketing and promotion activities have led them to achieve this stance. Malaysian consumers have now target more toward the western-style food service outlets allowing restaurants and more café’s to meet their expectation. Ice cream parlors such as Häagen-Dazs currently have a growth value of 12% as they are constantly gaining fame in Malaysia.

The sales of frozen desserts are constantly changing which are mainly influenced by the shifts in the economy. However, many companies are developing better enhanced products and improving existing ones in the market by counting in features according to consumer demands.Now many companies are focusing on producing fat-free and low-fat classes of frozen desserts as compared to the full-fat category on the account of consumers who are not very particular about their fat intake as to keep a healthy eating lifestyle.

Chapter 4 - Consumer and Stakeholders

Chapter Four: Consumers and Stakeholders

4.1   Current Consumers’ Characteristics

4.1.1. Demographics spread

a) Age: 13– 29 years old

b) Gender: Male and female

c) Education: High school, colleges and universities

d) Occupation: Students, white collar workers.

e) Income Range: - Students Allowance (RM400 – RM1000)

                               - White collar workers Income (RM1500 – RM3000)

f) Race & Ethnicity: All races and ethnicity

g) Geographical Location: Urban and sub-urban areas

  

4.1.2. Psychographic

a) Perception.: Loves a fun time with friends and family while enjoying a healthy dessert

                         that is both delicious and nutritious.

b) Learning: - Digital and social media influences such as Facebook, blog reviews,

                         websites and promotions offered online.

                      - Influence from recommendation by friends and families.

c) Motivation & Needs: - Looking for fun and exciting healthy dessert options to try out and

                                           enjoy it with friends and families.

                                         - Likes to experiment different type of flavors.

d) Attitude & Personality:- Loves to socialize and have a joyous life and are more inclined to

                                               purchasing healthier dessert products.

                                              - Jovial, sociable and loves to try new food.

e) Lifestyle:- Leads a healthy eating lifestyle, active life routine and may have a stressful

                       working life but knows how to take a break from it.

                    - Likes to be carefree and loves to spend time with families and enjoys

                       gatherings with friends.

4.2 Stakeholders’ Characteristics

4.2.1. Primary

The primary stakeholders of the company are from international countries. Their contribution

involves their expertise and knowledge in terms of improving the management and organization of the company and business.

·         Board of Directors

The board of directors is in charge of guiding staffs and employers in managing the

company to reach the organizations objective. They are also responsible in ensuring the

profit earned by the company and look after the assets of the current shareholders.

·         Shareholders

The shareholders are known as stockholders who contribute in investing money in the

company and earn a share in profit accordingly when the company achieves a certain target

but is subjected to loss when the company performs badly.

·         Employees

The employees are in charge of contributing to the company and perform jobs/tasks as

instructed by the company and receives their monthly wages in return.

·         Consumers

The consumers are individuals who have the power to purchase of the company’s products

depending on the product worth in terms of the product quality, thus contributing to the

company’s sales revenue.

4.2.2. Secondary

·         Distributors

The distributors are in charge of supplying the associated products for the company’s

business to be sold to customers.

·         Media

The media functions as a medium to advertise the products and create brand awareness to

the public to gain exposure on it thus expecting a growth in sales.

·         Banks

The bank helps the company in terms of financial situations and provides loans and funds

in order for them to expand their business.