Indulge yourself ..give yourself a treat . In the past the marketers focused more towards children and teenagers.
Also over the past 5 years the industry product range has expanded dramatically and company s now have such a larger variety of product to promote. Company s now will determine what the market situation is with research, identify the segment and then target that market.
Also pending the out come of the research and what that market is worth they will then determined on what to budget for promoting the product.
The shift in advertising has been moved to a variety of areas:
+ Cinema advertising has increased due to its low cost and products can be targeted to specific consumers.
+ Billboards have more prominence and have been targeted as another good source to promote a brand.
+ Public transport advertising also is low cost and can cover a vast area of consumers.
+ Intimate press weekend colour supplements and weekend review sections of the up-market press is used more to advertise premium brands.
+ Larger variety of point of sale material being more and more utilised, where some stores have there front windows sign written at no cost and company brands get prominent exposure, Unilever used this tactic when they launched there new Streets branding some 4 years ago.
+ Supermarket catalogues are used more to promote new lines.
With the development of new products in recent years, particular in the super premium and premium range will to some extent cannibalise some existing products therefore company s will be looking at further ways to promote and advertise their brands to ensure they receive the targeted market share. Company s also focus on reinventing some current products with changing its style of packaging and then promoting it not only to the current buyers of the product but to attract back past buyers and new segments of consumers which previously purchased similar branded products. As a result of stiffer competition in the industry companies are always looking for an edge in advertising from their competitors.
6. SARA LEE PREMIUM 1-LITRE ICE CREAM
6.1 Product Summary
The super premium end of the industry is one of the fastest growing segments in the ice cream and dessert market it has attracted a number of company s towards this market in recent years. One of the first company s to concentrate purely on this segment of the market was Sara Lee.
Sara Lee had researched and found that the super premium segment was growing at extraordinary levels in the United States and Europe and ice cream has ceased to be a children s treat, it now was becoming a fully-fledged adult food available in a variety of flavors. This trend promoted Sara Lee in 1995 to commission Universal Foods in Mulgrave Victoria (which Sara Lee Aust purchased in 1998) to produce under contract a range of 500ml and 1-liter super premium ice cream tubs (Sara lee Classic Ice Cream) to be sold through the retail sector.
Sara Lee strategy was to keep it simple and:
+ Launched the range in 500 ml and 1-liter tubs.
+ Produced a small range of flavors that were recognisable, attractive adult favorites: choc swirl, creamy vanilla, real strawberry, Honeycomb.
+ To be sold within the supermarkets, but also convenience stores due to its small tub size.
+ Promoted the range as an indulgence luxury treat.
+ Target the young adult Market e.g.: D.I.N.K.S.
+ Target the Impulse luxury treat for mum and dad.
6.2 Product Growth
Even thou the super premium category is increasing Sara Lee Classic 1-litre tubs is experiencing a decline in sales due to new entrants into this market in 1999-00:
+ Take-home packs/tubs market share for Sara Lee Classic 1-litre tubs was 3.4 percent a drop of 11.9 percent from 1998-99.
+ Super premium market share for Sara Lee Classic 1-litre tubs was 47.2 percent a drop of 11.9 percent from 1998-99.
+ 1- liter pack size market share for Sara Lee Classic 1-litre tubs is 78.4 percent a rise of 5.9 percent from 1998-99.
(Source: Aztec 2001)
Brand Market Share % Growth %
Sara Lee Classic 47.2 -11.9
Brownes Cnnssr 25.0 – 6.5
Streets Blue Ribbon 7.9 N/A
Cape Byron 15.5 – 48.0
Haagen dazs 0.2 N/A
Others 4.7 + 48.8
(Source; Aztec 2001)
Pack size Market Share % Growth %
100ml 249ml 0.3 + 422.3
250ml 499ml 0.3 + 53.6
500ml 699ml 20.9 + 18.4
700ml 999ml 0.1 – 11.9
1 Lt 1.9 Lt 78.4 + 5.9
2 Lt 2.9 Lt N/A N/A
(Source; Aztec 2001)
7. CONCLUSION
The shift away from economy products and with the premium market developing the fastest during the past five years and while the economy is traveling healthy ice confections will have slight decreases as consumers up grade to more higher quality products. So it is assumed that the industry will be successful in introducing higher value added products.
Even thou imports are a threat it is assumed that they will play significantly small role within the industry, however exports are forecast to continue to increase, but this depends on fluctuations in the value of the Australian dollar which has the potential to affect exports.
The industry will continue to be dominated by large producers, but pressure by some overseas manufacturers entering niche segments of the market will play an interesting role over the next 5 years. Sales will continue to grow within the grocery and food service industry, but is declining in the route trade.
Advertising and promoting products has changed within the past 5 years with more inventive styles from company s to differentiate products and to attract consumer s awareness.
With increases in efficiency, new product development and the introduction of new, higher margin products the industry is forecast to have consistent increases in production and turnover over the next 5 years.
TEXT OF REFERENCES
+ Anna Floate, 1999, Brands Play a Key Role in the Ice cream Market . Retail World, June 21 July 2, 1999,
+ Australian Grocery Industry Marketing Guide, Edition, 1998,
Ice Cream Annual Report 1998.
+ Australian Grocery Industry Marketing Guide, Edition, 1999,
Ice Cream Annual Report 1999.
+ Australian Grocery Industry Marketing Guide, Edition, 2000,
Ice Cream Annual Report 2000.
+ Aztec Information Systems, Aust, 2000, Premium Ice Cream Annual Report 2000.
+ Dawn Coulter, IPA, 1996. How Advertising helped revive interest in Viennetta across Europe . USA, www.WARC.com, [online],
(16 March 2001).
+ IBIS Business Information Systems, Aust, 2001, Ice Cream Industry Annual Report 2001
+ John Burgess, Food Service Plus, Personal Interview, 15 March 2001.
+ Nick Kendall,1992. Dedicated to Pleasure . Haagan Daz,
USA www.WARC.com, [online], (16 March 2001).
+ International Trends , 2000. Retail World, June 26 7 July 2000.
+ Premium Products Grow , 1999. Retail World, Sept 27 Oct 8, 1999.
+ Sara Lee Aust Web Site. www.saralee.com.au, [online], 15 March 2001.
BIBLIOGRAPHY
+ Anna Floate, 1999, Brands Play a Key Role in the Ice cream Market . Retail World, June 21 July 2, 1999,
+ Australian Grocery Industry Marketing Guide, Edition, 1998,
Ice Cream Annual Report 1998.
+ Australian Grocery Industry Marketing Guide, Edition, 1999,
Ice Cream Annual Report 1999.
+ Australian Grocery Industry Marketing Guide, Edition, 2000,
Ice Cream Annual Report 2000.
+ Aztec Information Systems 2000, Premium Ice Cream Annual Report 2000.
+ Bill Pickett, Laney, Pickett & Associates. Personal Interview, 12th March, 2001.
+ Dawn Coulter, IPA, 1996. How Advertising helped revive interest in Viennetta across Europe . USA, www.WARC.com, [online], (16 March 2001).
+ IBIS Business Information Systems, Ice Cream Industry Annual Report 2001.
+ International Trends , 2000. Retail World, June 26 7 July 2000.
+ John Burgess, Food Service Plus, Personal Interview, 15 March 2001.
+ Larry Ottaway, State Manager Sara Lee Foods, Personal Interview, 11th March, 2001.
+ Nick Kendall, 1992. Dedicated to Pleasure . Haagan Daz,
USA www.WARC.com, [online], (16 March 2001).
+ Premium Products Grow , 1999. Retail World, Sept 27 Oct 8, 1999.
+ Sara Lee Aust Web Site. www.saralee.com.au, [online], 15 March 2001.
+ Brenda Wardlaw, 1996, Dairy Profiles . Standard & Poor s Industry Profiles, 1996, Swinburne Library, 2001.