Streets Ice Cream had its foundation laid during the time between WW1 and WW2 by Edwin Street, with help from his brother and wife. They had no idea that their venture would go on to become one of the biggest and best known ice cream manufacturer in Australia. The product started off originally in the back shed of the Streets. Edwin then sold those to the neighbors, along with some cakes, sweets and lemonade. All these selling increased his popularity and he soon started using a cart, later moving on to one-horse- power motorbike for selling those Streets Ice Cream. The venture started to grow and today it is sold all over Australia and New Zealand, with majority of the profit gained from well-known brands like Paddle Pop, Blue Ribbon and Magnum (Streetsicecream.com.au 2017).
Image: Logo of Streets Ice Cream
Streets Ice Cream has been the reason for a lot of people’s smiling faces. They have even supplemented their ice cream products with a developing range of lower-fat, lower-sugar products. There is also a lighter version range of some of the Streets Ice Cream brands, all the while maintaining the lusciousness of the products. There is also Magnum Minis for those who are looking for enjoying their treats in a smaller serving size. Magnum was the first ice cream for adults that was put on a stick. Today the brand is one of the leading wished ice cream brands in the world, retailing approximately 1 billion units a year (Unilever Australasia 2017).
Image: Different Brands of Streets Ice Cream
The Australian ice cream industry experienced a 4% increase in ice cream consumption in 2016. There was an increase in sales of smaller portions of ice cream, approximately 1% increase in volume terms due to the rising health concern consciousness. Australasian Food Group Pty continued its leading streak in 2016 also with 32% value share due to the multiple brands across major ice cream categories (Euromonitor.com 2016). Local gourmet product providers like Harry’s Ice Cream Co has a significant contribution in the industry, with the locally made products of unique and interesting flavors. Large ice cream manufacturers like Peters and Bulla have fast caught up on the increasing taste for premium ice cream. It has been found from reports that Streets gets tough competition in the Australian market from top brands like Bulla and Connoisseur (Ausfoodnews.com.au 2014). Close competition also includes Norco. Golden North and Homer Hudson are two distant competition of Streets and are fast gaining market.
The Lehmann and Winer level of competition model helps the ice cream manufacturers understand that it is important for precisely locating and evaluating their competition as each competitor brings a threat. The competitive derivatives are situated inside a diagram that has been grounded in accordance with the product under assessment (Lehmann and Winer 2005).
Image: Lehmann and Winer level of competition model
The ice cream industry faces high level of competition (Newlands and Hota 2017). This is specifically clear in the product form category. There are many replacements in the product level for customers, extending to the product category and generic competition.
In the consumer packaged goods market, the growing GDP and ageing population in Australia is generating new dynamics. The scenario has improved and has created a lot of opportunities for Streets ice cream (Refer to appendix 1). The retail and food service market in Australia showed the following improvements in 2014:
|
Country indicator |
Units |
Value |
|
Total value of Food market, 2014 |
US$ millions |
55,191.1 |
|
Total volume of Food market, 2014 |
Millions of Kg |
7,510.7 |
|
Total Food volume growth 2009-2014 |
CAGR |
2.7% |
|
Proportion of Ice Cream as share of whole food volume, 2014 |
% |
3.3% |
|
Major category within the Ice Cream market as part of whole volume, 2014 |
% |
Artisanal Ice Cream,47.4 % |
|
Private label penetration in Ice Cream market, 2014 |
% |
6.4% |
Image: Retail overview
Food service overview:
Profit
Total number of trades in the Profit Sector, 2014: 3,838.7 million
Principal channel in the Profit Sector and trades, 2014: Restaurants, 2,600.7 million
Cost
Total number of trades in the Cost Sector, 2014: 816.0 million
Principal channel in the Cost Sector and trades, 2014: Education, 430.7 million
The Ice Cream market in Australia developed at a CAGR of 5.1% in US$ terms for the duration of 2009-2014 and is forecasted to deteriorate by -2.5% throughout 2014-2019. Both on-trade and off-trade ingestion would reduce by -2.5% in value terms during 2014-2019. The volume ingestion of Ice Cream products is predicted to develop at a CAGR of 1.8% during 2014-2019 from 412.3 Kg million in 2014 to reach 451.6 Kg million in 2019 (Refer to appendix 2).
|
Streets |
Peters |
Harry’s |
Bulla |
|
|
Brands |
Magnum, Cornetto, Futtare, Golden Gaytime, Splice, Calippo, Paddle Pop, Blue Ribbon, Vienetta |
Barney Banana, Billa Bong, Arnott’s, Proud & Punch, Gelato Fiasco, Drumstick, Connoisseur, Maxibon, Monaco Bar, Dixie Cup, Eskimo Pie, Frosty Fruits, Icy Pole, Giant Sandwich, Heart (Peters Ice Cream 2017) |
Coffee, Vanilla Popcorn Crunch, Salted Caramel Fudge, Peanut Butter Fudge, Triple Choc Brownie, Sticky Date Pudding (Harrysicecream.com 2017) |
Giant twins, Barista Bar Coffee, Chocolate Daydream, Menz Fruchocs, Swing, Wedgee Ice Block (Bulla.com.au 2017) |
|
Price |
$8 |
$8 |
$4 |
$4.9 |
|
Size |
900 ml |
900 ml – |
475 ml |
2L |
|
Artificial colors |
None |
None |
None |
None |
Image: Product Features Matrix
The main customers of these products are children and teenagers. They are easily impressionable and are the maximum section of the population. Irrespective of the geographic location, people are inclined towards consuming this frozen dessert. People from across a large variance of income and social class are consumers of ice cream. The most consumed ice cream are take-home and bulk (Goff and Hartel 2013). The volume intake of Ice Cream was 412.3 Kg million in 2014, of which Take-home and Bulk Ice Cream accounted for 60.8% of volume sales trailed by Artisanal Ice Cream with 22.4% share. Artisanal Ice Cream would record the highest development in volume terms at a CAGR of 1.9% all through 2014-2019 trailed by Take-home and Bulk Ice Cream at a CAGR of 1.8% in the same time (Refer to appendix 3 and 4). Streets have immense competition from Peters and Bulla in this section as they have the best and maximum amount of take-home and bulk options available for the consumers.
|
Category |
Average Price/ Kg (AUD) 2014 |
Average Price/Kg (USD) 2014 |
|
Artisanal Ice Cream |
16.5 |
14.9 |
|
Impulse Ice Cream Single Serve |
15.6 |
14.0 |
|
Take-home and Bulk Ice Cream |
10.6 |
9.6 |
Image: Average category level prices (AUD) in Australia’s Ice Cream market, 2014
All private label sectors are attaining share in the Ice Cream market. The private label Ice Cream products developed at a CAGR of 6.2% during 2011-2014, while the branded Ice Cream products registered a CAGR of 1.8% throughout the same period. The Impulse Ice Cream – Single Serve category has recorded the firmest private label development with a CAGR of 7.6% through 2011-2014, trailed by Take-home and Bulk Ice Cream with a CAGR of 5.9% through the same time. This point to the increasing request for private label Ice Cream products in the country because the Australian customers believe private label presents to be urbane enough to contend with brands (Refer to appendix 5).
Marketing? ?objective:
Marketing Mix:
Price: Streets will be embracing the market penetration pricing strategy for the initial a year of the presentation of the product. Penetration pricing strategy positively affects here and now market penetration rate (Spann, Fischer and Tellis 2014). The low pricing will give Streets an additional favorable position over its rivals prompting increment in the volume of sales.
Product: This product purposes to tap into the interest of the newer generation and have a product that is custom-made definitely towards them.
Place: A specialty product focused towards the newer populace. It would be situated as a sound product made with nearby best quality fixings. The product would fill its need without trading off on taste. The product would likewise oblige those looking for a more advantageous option in the ice cream parlor classification.
Promotion: A well thoroughly considered and complete promotion and marketing campaign will have a wide rundown of constructive outcomes for the organization (Mahajan et al. 2016). In that capacity, it will enable the organization to get to the objective market absolutely, ameliorate shopper data toward the organization products, and also generate a database for collaborations with customers and unraveling an assortment of client issues.
The goal of this SWOT analysis is to abridge all the data, comprehend and illuminate what is the Streets’ competitive advantage, what contenders are improving the situation, which openings the market offers and what threats the brand is presented to.
Strengths – An important competitive advantage of Streets is that its ice creams are sold under different umbrella brands. The way that Unilever has the responsibility for Streets’ picture speaks to an essential advantage before the contenders. It resembles this in light of the fact that on one hand Unilever can control and deal with all the TV and computerized substance and PR occasions; something that a permit contract does not permit.
Weaknesses – Children’s product portfolio has low level of distribution in food service (Cohen and Muñoz 2017). Contenders are more significant in the children section and they have a more characterized and steady strategy. Streets’ range of products in food service is wide, and the level of awareness is higher compared to others.
Opportunities – There is a huge opportunity to introduce Street’s ice creams to the other existing clients all over the world. Other than the distribution potential, the gross sales value caught by every customer has been expanding quite a long time. At the end of the day, eateries and bars are spending more cash onon Streets.
Threats – The present emergency is having a solid negative effect in the food service segment. Eateries are getting less customers and the normal use per customer is lower. In this situation the pastry is the most influenced classification. Liking with frozen yogurt brands begin early and is generally kept through life. In the long haul this can be a danger and thusly it is essential, over the long haul, that Streets is the main brand in fondness and utilization in all snapshots of utilization. Losing this position may suggest losing the purchaser in the long haul (Yan et al. 2015).
Reference List
Ausfoodnews.com.au. (2014). Bulla Australia’s most popular ice cream brand, Roy Morgan Research | Australian Food News. [online] Available at: https://www.ausfoodnews.com.au/2014/11/05/bulla-australias-most-popular-ice-cream-brand-roy-morgan-research.html [Accessed 22 Aug. 2017].
Bulla.com.au. (2017). Cream, Ice Cream, Yoghurt, & Cheese in Australia | Bulla Family Dairy. [online] Available at: https://www.bulla.com.au/#/ [Accessed 22 Aug. 2017].
Cohen, B. and Muñoz, P., 2017. Entering Conscious Consumer Markets: Toward a New Generation of Sustainability Strategies. California Management Review, 59(4), pp.23-48.
Euromonitor.com. (2016). Ice Cream and Frozen Desserts in Australia. [online] Available at: https://www.euromonitor.com/ice-cream-and-frozen-desserts-in-australia/report [Accessed 22 Aug. 2017].
Goff, H.D. and Hartel, R.W., 2013. Ice cream. Springer Science & Business Media.
Harrysicecream.com. (2017). Harry’s Ice Cream Co. [online] Available at: https://harrysicecream.com [Accessed 22 Aug. 2017].
Lehmann, D and Winer, R., 2005. Product Management. 4th International edition. New York, NY; McGraw-Hill.
Mahajan, S., Antarkar, D., Roy, R., Nagare, M., Kalantri, R. and Tiwari, V., 2016. Predictive Modeling in Campaign Management. algorithms, 5(10).
Newlands, D. and Hota, M., 2017. Case Study 7: Häagen-Dazs China: The Luxury Icing on the Cream. In Services Marketing Cases in Emerging Markets (pp. 77-88). Springer International Publishing.
Peters Ice Cream. (2017). Ice Cream Australia | Peters Ice Cream. [online] Available at: https://www.peters.com.au [Accessed 22 Aug. 2017].
Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic pricing for new products. Marketing Science, 34(2), pp.235-249.
Streetsicecream.com.au. (2017). Share Happy. [online] Available at: https://www.streetsicecream.com.au [Accessed 22 Aug. 2017].
Unilever Australasia. (2017). Streets. [online] Available at: https://www.unilever.com.au/brands/our-brands/streets.html [Accessed 22 Aug. 2017].
Yan, M.R., Brown, D., Parsons, A., Whalley, G.A., Hamid, N., Kantono, K., Donaldson, B. and Rush, E., 2015. Branding, ingredients and nutrition information: consumer liking of a healthier snack. Journal of Food Research, 4(5), p.64.
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