This report is in continuation of the assessment one in which marketing environmental analysis of the company Timboon Fine Ice Cream was analysed. The assessment one of the report evaluated the industry as well as macro environmental analysis of the small and medium enterprise Timboon. Timboon is a fine ice cream company placed in Australia that provide rich, tasty and fresh ice creams to the customers in the target market. Further, the second part of the assessment evaluates the marketing strategy for the company Timboon based on the marketing environmental analysis of the company. The following report evaluates the growth strategy of the company based on the environmental analysis. Further, it also evaluates the consumer target market strategy with the help of which the company can easily focus on targeting the right type of customers in the market to increase their sales. Positioning strategy of the company is also evaluated in order analyse the position of the company and place them at the correct station in the market. Along with the positioning strategy, the report analyse the marketing mix strategy along with extended market mix for the company. The marketing mix will help the company to describe the efforts with the help of which they can initiate right positioning strategy in the market. The company is Timboon is already working well in the target market but with the help of below mentioned analysis; the company will effectively manage to earn competitive edge and sustain their position in the target market. Furthermore, details about the company and analysis are mentioned below:
In order to evaluate the growth strategy for the company Timboon Fine Ice Creams, Ansoff matrix framework is being evaluated. Ansoff matrix framework is a strategy planning tool that provides a framework to help the senior management to devise strategies in such way that future growth is achieved. The framework was created by Russian American Igor Ansoff; this framework is named behind his name only. This type of framework provides four different types of product-market strategy (Mishra, Mohanty, & Mohanty, 2015). According to this strategy, growth alternatives are defined as market penetration, market development, product development and diversification. Further, explanation of all the four strategies and selection of most suitable product-market strategy for Timboon Fine Ice Cream is discussed below:
Market Penetration: It is the least risky strategy as it provides resource and capabilities of the company in the external market. In the growing external market, it is difficult for the companies to maintain the market share and grow as well as there is high degree of competition in the target market. There are varied opportunities present in the external international market if the firms aim to reach their capacity limit (Chandan, 2015). Under this type of strategy, the firms grow by using their products and services in the existing market. Basically, the company aims to increase their market share in the current market using available resources and capabilities. This results in increasing market share of the company by selling more products and services and targeting a varied range of customers in the target market (Bocken, Fil, & Prabhu, 2016).
Market Development: It refers to the process of adding new market in the existing streams of the company. Under this type of growth strategies, new geographical region is added with the company where they would start selling their products and services. Development of target market on the basis of geographical boundaries can act as a good decision for the company if it has optimum core competencies to capture the external market. This type of strategy has comparatively more risk as compared to the market penetration strategy because under this case, the company is going to launch their products and services in a new market segment (Hallberg, Friberg, & Myhrman, 2014).
Product Development: Under this type of growth strategy, the company aims to operate the business by introducing new product line in the target market. In order to initiate this type of strategy, the company needs to have strength and capabilities in the internal process. If the company has available resources and capabilities that can help them to develop new product line in the market then the company should make use of this type of growth strategy. Under this strategy, the products can be obtained by investing in research and development for additional product, acquiring the right to produce someone else’s product, badging the product as their own brand or attain joint development ownership etc. (Hirano, 2016).
Diversification: It is the most risky growth strategy for any company as it includes both product and market development using the core competencies that are available or outside the firm. Diversification is also referred as suicidal cell under the quadrant of ansoff matrix (Conficoni, Alberghini, Bissacco, Ferioli, & Giaccone, 2017). However, this type of growth strategy can be considered as a reasonable choice as higher risks gives higher rate of return as well. Further, the growth strategy of diversification also helps the company to gain foothold on the attractive industry and reduction in overall business portfolio risk as well (Timboon, 2018).
After analysing all the four Ansoff matrix growth strategies, below mentioned is the strategy that the company Timboon Fine Ice Cream should use in order to attain growth in the external market:
The company should make use of ‘Market Development’ growth strategy in order to succeed in the target market. The market development strategy will help the company to diversify their scope of business in different parts of the world including whole of Australia. All customers present in Australia know the fact that the company Timboon Fine Ice Cream provides fresh and tasty ice cream in the market but the products are feasible in the market as the company supplies their products and services only in limited parts of Australia. So, market development strategy will help the company to explore new areas and foreign market to increase profits (Kundu, & Majumdar, 2017).
Part one of the assessment also covered the consumer that the company currently targets in the external market. This segment includes people between age group of 6 to 60. On the basis of demographic segmentation the company has targeted people of all age group. As ice cream is a product that is preferred by all the people present in the target market. So, on the basis of that aspect, the company targeted people belonging to age group between 6 to 60 years of age. Further, along with this, the company also targets people that prefer fresh ice cream made of real products in the market. Consumer market segment refers to the segmentation activity that divides the consumers into different groups and sub-groups (De Mooij, 2018). On the basis of segmentation, the company gets to know about the potential customers present in the market that will surely initiate the sales and the customers that the company need to work on in order to increase the sales margin in the target market (Haskelberg, et. al., 2016). Basically, the customers are segmented on the basis of four types of segmentation that are demographic, behavioural, psychographic and geographic. Further, the fact should be noted that not all customers look for fresh and natural ice creams, as some people on purchase the product on the basis of its price and without looking at the specifications of the company.
So, the company should introduce a product line that sell ice creams at low cost. Also, the company should focus on other geographical regions apart from Victoria and New South Wales (Haque, Bappy, & Arifuzzaman, 2018). Victoria and New South Wales are the areas where there is already high demand of ice cream in the market. But, other areas are left un-captured in Australia due to high concentration of companies in these two areas. So, on the basis of geographic segmentation, the company should target people living in other regions apart from Victoria and NSW. Along with this, Timboon Fine Ice Cream should also aim to capture the New Zealand market. As New Zealand comes under major ice cream consumption countries so expansion of the company New Zealand market will help them to successfully grow. Further, on the basis of psychographic and behavioural segmentation, the company should majorly target people that are health conscious as well as ice cream lovers. Further, along with this, the company should also target people having sweet tooth who loves eating rich and organic food only (Qin, & Surachaikulwattana, 2015).
Positioning theory refers to the theory that talks about the place at which the company needs to place themselves in order to distinguish the brand in the external market. Positioning is very important for the business as it helps the brand to occupy a differential position in the target market and attain competitive edge as well. It is regarded as one of the most powerful marketing strategy that helps the company to promote the business in the international market as well. Further, the fact should be noted that the brand is given a position on the basis of perception of the customers in the target market. Customers of the company position the product and the brand on the basis of their likes and dislikes in the market (Çak?r, & Balagtas, 2014). Further, below mentioned is the positioning map of the company Timboon Fine Ice Cream:
Source: By Author
Further, the fact should be noted that the company is already positioned at the right place in the target market. The customers feel that the company provides high quality products at high prices to the customers in the market. Further, the company should make use of positioning within the category and pre-emptive positioning strategy in the business (Herath, de Silva, & De Silva, 2015). With the help of positioning within category strategy, the company should become a member of the exclusive club or groups and promote their brand in those markets. This will initially help the company to capture the potential clients in the target market. Secondly, the company Timboon Fine Ice Cream should also make use of pre-emptive positioning strategy. Under this type of strategy, the company should become the first one to claim the benefit or features of the products. This means that they should clearly portray the specifications of the product and introduce them with the customers in the market. This will help Timboon to show the specifications of the product properly and earn customers on the basis of its features in the market (Jensen, & Ronit, 2015).
The marketing mix strategy of the company Timboon Fine Ice Cream to grow and promote the business are discussed below:
As discussed in the previous report that the company make use of milk from the farm and cream from the local dairies to produce the ice creams. Thus, there are varied ranges of fresh ice creams that are produced and served by the company. Further, in order to extend the product line, the company should manufacture waffles as well. Waffles are the products that are preferred by the customers with ice cream only. So, if the company will manufacture waffle then it will add new product line for them and it will also increase the sales of ice cream as well. In this way, indirect sale of ice cream will occur which will result in increase in profits of the company. Also, introduction of waffles will increase the product line as well (Chen, Tsai, & Chiu, 2015).
Apart from targeting premium range customers in the target market, the company should target people of medium range as well. As stated above that not all people prefer eating ice creams that are rich, authentic and expensive, some people purchase ice cream without even looking at its specifications. So, the company should target premium as well as middle income level people to increase their sales in the target market. Either they can perform this by reducing the prices of the available ice cream, or if they do not want to change the perception of the customers, then they can introduce another line of product that is comparatively less expensive (Allata, Valero, & Benhadja, 2017).
Distribution is the most important aspect of the market development strategy of the company Timboon Ice Creams. In order to initiate the growth strategy in the target market, the company should initially expand the customer market base. They should increase the geographical boundaries where they can serve the products. Apart from focusing on Victoria and New South Wales, the company should also target various other segments of Australia and New Zealand as well. New Zealand has highest amount of ice cream consumption so it can act as a benefit for the company to grow and increase its sales in international market (Timboon, 2018).
The company should focus on making effective promotion strategies in the external international market so as to increase the revenue count as well. The fact is known that the company does not initiate extensive promotion strategies due to which the name of the company is not enough famous in the market. More than giving offers and discounts, the company should focus on promoting the brand so that people can recognize it in the external international market. Further, as the company is going to expand business in New Zealand market so they should initially focus on making the brand visible in front on the potential customers. Further, after making the brand visible the company should offer perks and discounts to the customers in the market (Babu, & Shams, 2015).
Two major people in the company Timboon Fine Cream are Tim Marwood and Caroline Simmons. These are the people who wholly and solely take the decisions of the company. The people that manage the company are successfully following the visions of the company but, there are various other factors that the company need to consider while initiating the business functions. The leaders of the company should focus on proper promotion and branding strategies so that the position of the company is maintained and sales are increased. The company should hire more people in the management so that they can effectively manage all the actions (Johnson, 2017).
Physical evidence mix of marketing explains about the elements of an organization that are incorporated into services so as to make them measurable and tangible as well. Physical evidence also helps in positioning of the brand and increasing its reputation in the target market. The company Timboon Fine Ice Cream has adequate goodwill in the market that helps them to grow and sustain their image in the market. Apart from this, the company has extended land where they effectively initiate their business actions. The manufacturing plant of the company is big enough to manufacture ice cream that is demanded in the market (Soukoulis, Fisk, & Bohn, 2014).
The management of the company very well knows the process of making ice cream as they have earned specialization in it. The company makes use of raw material from the local market and farms that gives them advantage to produce fresh ice cream in the market. Apart from this, the company should hire waffle makers with them so that they can produce tasty waffles as well. Production of waffle was important for the company as it will add a new product line for the company and will increase the sales of ice cream as well. So, the company should hire people that know how to make waffles and then produce the product accordingly (Parnell, Edmunds, Pierce, & Stoneham, 2018).
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the company Timboon Fine Ice Cream should make use of effective market development growth strategies in order to grow and succeed in the target market. The above mentioned report evaluated information about the growth strategies of the company. Timboon should make use of market development strategy by promoting and expanding the brand in New Zealand market. This type of growth strategy will help the company to have a bigger customer base in the market and attain sustainable competitive advantage as well. Further, the report also explained various strategies that the company should utilize in order to implement the growth mission in the external environment. Marketing mix for the company is evaluated that will help them to successfully manage all the functions and grow as well. The marketing mix strategies are explained in such a way that they help the company to operate the business successfully and grow in diverse market of New Zealand as well. The report adequately satisfies the requirements of the assessment.
References
Allata, S., Valero, A., & Benhadja, L. (2017). Implementation of traceability and food safety systems (HACCP) under the ISO 22000: 2005 standard in North Africa: The case study of an ice cream company in Algeria. Food Control, 79, 239-253.
Babu, M. S. H., & Shams, S. (2015). Factors Influencing Consumers’choice Of Ice-Cream: A Study On Impulse Buying Behavior. Journal of Marketing, 16(1), 225-242.
Bocken, N. M., Fil, A., & Prabhu, J. (2016). Scaling up social businesses in developing markets. Journal of cleaner production, 139, 295-308.
Çak?r, M., & Balagtas, J. V. (2014). Consumer response to package downsizing: evidence from the Chicago ice cream market. Journal of Retailing, 90(1), 1-12.
Chandan, R. C. (2015). Dairy Industry: Production and Consumption Trends. Dairy Processing and Quality Assurance, 41.
Chen, Y. K., Tsai, P. S., & Chiu, F. R. (2015). A customer value analysis of Taiwan ice cream market: a means-end chain approach across consumption situations. SpringerPlus, 4(1), 759.
Conficoni, D., Alberghini, L., Bissacco, E., Ferioli, M., & Giaccone, V. (2017). Heavy metal presence in two different types of ice cream: artisanal ice cream (Italian gelato) and industrial ice cream. Journal of food protection, 80(3), 443-446.
De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.
Hallberg, A., Friberg, S., & Myhrman, P. (2014). How Small Businesses Market Their Products during the Different Phases of the Product Life Cycle&58; The Case of Swedish Ice Cream Manufacturers. Eurasian Journal of Business and Management, 2(1), 1-13.
Haque, M. S. S., Bappy, T. A., & Arifuzzaman, M. (2018). The Impact of Brand Awareness on Customer Loyalty towards Igloo Ice Cream: A Study on Dhaka University Students. International Journal of Science and Business, 2(1), 1-21.
Haskelberg, H., Neal, B., Dunford, E., Flood, V., Rangan, A., Thomas, B., … & Gill, T. (2016). High variation in manufacturer-declared serving size of packaged discretionary foods in Australia. British Journal of Nutrition, 115(10), 1810-1818.
Herath, H. M. R. P., de Silva, A. E., & De Silva, S. K. D. U. (2015). Factors influencing consumer purchasing decision of impulse ice cream in Sri Lanka.
Hirano, M. (2016). Role of an entrepreneur for innovating regional agriculture: through a case of a Japanese ice cream firm. International Journal of Entrepreneurship and Small Business, 29(2), 322-337.
Jensen, J. D., & Ronit, K. (2015). The EU pledge for responsible marketing of food and beverages to children: implementation in food companies. European journal of clinical nutrition, 69(8), 896.
Johnson, S. (2017). IBISWorld Industry Report C1132 Ice Cream Manufacturing in Australia. Retrieved from: file:///C:/Users/Laptop04011/Downloads/2847361_2041631578_C1132IceCreamManufacturinginAu%20(1).pdf
Kundu, A., & Majumdar, R. (2017, June). Tie-Up Technology in Marketing Strategy: A Case Study on a Small Industry Business. In Academy of Marketing Science World Marketing Congress (pp. 191-199). Springer, Cham.
Mishra, S. P., Mohanty, A. K., & Mohanty, B. (2015). Are there dominant approaches to strategy making?. Vilakshan: The XIMB Journal of Management, 12(1).
Parnell, A., Edmunds, M., Pierce, H., & Stoneham, M. J. (2018). The volume and type of unhealthy bus shelter advertising around schools in Perth, Western Australia: Results from an explorative study. Health Promotion Journal of Australia.
Qin, Z., & Surachaikulwattana, P. (2015). The Relationship among Social Environment, Perceived Value, Customer Satisfaction and Repurchase Intention in Ice Cream Franchise. Journal of the Academy of Marketing Science.
Soukoulis, C., Fisk, I. D., & Bohn, T. (2014). Ice cream as a vehicle for incorporating health?promoting ingredients: Conceptualization and overview of quality and storage stability. Comprehensive Reviews in Food Science and Food Safety, 13(4), 627-655.
Timboon., (2018). Flavours. Retrieved from: https://www.timboonfineicecream.com.au/flavours/
Timboon., (2018). Our Story. Retrieved from: https://www.timboonfineicecream.com.au/our-story/
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download