1 EXECUTIVE
SUMMARY
Our marketing team wishes to
transform Ben & Jerry’s into a brand name fostering the 4 E principle – being
an Exquisite brand, maintaining an Exclusive profile image, carving out an
Established household name in the
market, and supporting Environmentally-friendly
practices. Through this, we aim to shift the perception that Ben & Jerry’s
is for the young or young-at-heart, to one also catered to the discerning
consumer who enjoys the up-market lifestyle, and young families who appreciate
family-friendly offerings.
In
today’s dynamic environment, detailed analysis and understanding is essential
for us to reach out to the needs and wants of our customers, considering the
macro-environmental and micro-environmental issues resulting in such
preferences. By studying Ben & Jerry’s strengths, weaknesses, opportunities
and threats, we will be able to develop marketing objectives, derive Ben &
Jerry’s market position and highlight any areas to be improved on. Through
primary and secondary marketing research, we will be able to better understand
consumer needs and identify potential target markets. This helps us to
concentrate on areas that can significantly increase sales revenue.
A
12-month action plan from June 2010 to May 2011, incorporating marketing
strategies, advertising and promotional plans will be developed with the
information obtained. We project sales revenue of $20,792,200 during this period,
resulting in a net profit of $8,634,660.
Strict
monitoring and control processes will allow us to observe the progress of the
action plan and spot any deviation from the plans. To ensure that the marketing
plan remains on track, these deviations will be rectified in a relevant manner.
Table of Contents
1 EXECUTIVE
SUMMARY 1
2 INTRODUCTION 4
2.1 COMPANY BACKGROUND 4
2.2 COMPANY MISSION 4
2.2.1 SOCIAL MISSION 4
2.2.2 PRODUCT MISSION 4
2.2.3 ECONOMIC MISSION 5
3 SITUATIONAL ANALYSIS 6
3.1 MICROENVIRONMENT –
INTERNAL FACTORS 6
3.1.1 COMPANY STANDING 6
3.1.2 FINANCIAL PERFORMANCE 7
3.1.3 MARKETING CONCEPTS 7
3.2 MICROENVIRONMENT –
EXTERNAL FACTORS 8
3.2.1 POSITIVE PUBLIC PERCEPTION 8
3.3 MACROENVIRONMENT 9
3.3.1 POPULATION DEMOGRAPHICS 9
3.3.2 ECONOMIC INDICATORS 9
3.3.3 POLITICAL & LEGAL SITUATION 9
3.3.4 CHANGES IN CONSUMER PREFERENCES 9
3.4 TECHNOLOGICAL
ADVANCES 10
3.5 COMPETITORS 10
4 SWOT ANALYSIS 11
5 OBJECTIVES 12
5.1 Corporate
Objectives 12
5.2 Marketing
Objectives 12
5.2.1 Product / Market Expansion Grid 12
5.2.2 TARGETED Marketing Objectives 13
6 MARKETING RESEARCH 14
6.1 PRIMARY DATA 14
6.1.1 SURVEYS 14
6.1.2 OBSERVATIONS 14
6.2 Secondary Data 14
7 Market SEGMENTATION 16
7.1 SEGMENTATION
STRATEGIES 16
7.2 Primary Target
Market 16
7.3 Secondary Target
Market 17
7.4 Target Market
Segmentation 17
7.4.1 Primary Target Market 17
7.4.2 Secondary Target Market 18
8 POSITIONING 20
8.1 POSITIONING MAP 20
8.2 POSITIONING
STRATEGY 21
8.2.1 Product Differentiation 21
8.2.2 Service Differentiation 22
8.2.3 People Differentiation 22
8.2.4 Image Differentiation 22
8.3 Overall Positioning
Strategy 23
9 STRATEGIC MARKETING MIX 25
9.1 Product 25
9.1.1 Chocolate Fondue 25
9.1.2 Corporate Sponsorships 25
9.1.3 Junior Scoop 25
9.2 Price 26
9.2.1 Pricing For New Concepts 26
9.3 Place 27
9.3.1 New Scoop Shops 27
9.3.2 Scoop Shop Ambience 27
9.4 PromotionS 28
9.4.1 Sales Promotions 28
9.4.2 Advertisements 29
10 IMPLEMENTATION AND CONTROL 30
10.1 ACTION PLAN 30
10.2 CONTROL PROCESSES 30
10.3 Formal Marketing
Control 30
10.3.1 Employee Recruitment and
Selection Process 30
10.3.2 Employee Training Programs 30
10.3.3 Distribution Control Standards 31
10.3.4 Product Performance Standards 31
10.3.5 Promotional Activities Standards 31
10.3.6 Marketing Audits 32
10.4 Informal Marketing
ControL 32
10.4.1 Employee Work Attitudes Evaluation and
Control 32
10.5 Contingency
Planning 33
11 FINANCIAL FORECASTS 34
12 REFERENCES 37
2 INTRODUCTION
2.1 COMPANY BACKGROUND
Ben and Jerry’s Ice Cream was
founded by friends Ben Cohen and Jerry Greenfield in 1978. The pair started
their first scoop shop in a dilapidated filling station in Burlington, Vermont,
and soon become popular for their funky ice cream flavours made from fresh
Vermont milk and cream.
Owned since 2000 by Unilever
PLC, an Anglo-Dutch conglomerate with numerous interests in the food and
beverage and the personal care industries, Ben & Jerry’s sweet treats are
sold in stores across the United States and in 29 other countries around the
world. Their products are produced in pints, quarts, 500 ml cups, 2.4-gallon
tubs, single-serve cups and individual novelties and are distributed in
supermarkets, grocery stores, convenience stores, Scoop Shops, restaurants,
amongst other venues.
2.2 COMPANY MISSION
Ben & Jerry's mission statement is heavily centred towards social
responsibility. The company has been a champion of environmental and social
causes since it was founded.
2.2.1 SOCIAL MISSION
To
operate the Company in a way that actively recognizes the central role that
business plays in society by initiating ways to improve the quality of life
locally, nationally
and internationally.
2.2.2 PRODUCT MISSION
To make, distribute and sell
the finest quality all natural ice cream and euphoric concoctions with a
continued commitment to incorporating wholesome, natural ingredients and
promoting business practices that respect the Earth and the Environment.
2.2.3 ECONOMIC MISSION
To operate the Company on a sustainable
financial basis of profitable growth, increasing value for our stakeholders and
expanding opportunities for development and career growth for our employees. Furthermore,
the Ben & Jerry's Foundation aims to make the world a better place by
empowering employees to use available resources to support and encourage organizations
that are working towards eliminating the underlying causes of environmental and
social problems.
3 SITUATIONAL ANALYSIS
Ben & Jerry’s has been
operating in the Singapore market since 2004. They currently operate 12 outlets
mostly in central Singapore. In recent years, they have been facing stiff
competition from not only brand-name ice cream chains like Swensen’s and
Häagen-Dazs, but also from home-grown ice cream chains such as Udders and The
Daily Scoop. In years past, Ben & Jerry’s experimented with opening outlets
in the heartlands but achieved dismal results, prompting them to close down
these outlets and re-focus their strategies.
3.1 MICROENVIRONMENT – INTERNAL FACTORS
3.1.1 COMPANY STANDING
Figure 3.1 Respondents’
opinions on Ben & Jerry’s brand establishment
Figure 3.2 Consumers’
ice cream brand preferences
Ben & Jerry’s has
developed a strong public standing worldwide. This has helped it to gain a
foothold in the Singapore market, especially with the solid backing and brand name
familiarity brought in from overseas. With aggressive expansion and distribution
locally, Ben & Jerry’s has become a force to reckon with in the local ice
cream market, with 75% of consumers feeling that they are well-established in
Singapore. Accordingly, 27% of consumers selected Ben & Jerry’s as their
most preferred ice cream brand.
3.1.2 FINANCIAL PERFORMANCE
Unilever is the world’s
largest ice cream manufacturer famous for products such as Magnum and Paddle
Pop. The group had an annual turnover in excess of €39 billion and a net profit
of €3.65 billion in 2009. Such significant financial backing ensures that Ben
& Jerry’s will be relatively shielded from any negative effects caused by
an economic downturn or sudden drop in sales.
3.1.3 MARKETING CONCEPTS
Ben & Jerry’s touts
itself as using the finest, freshest ingredients from its home state in
Vermont, USA to deliver superior-quality treats. In addition, all products are
manufactured in the USA and distributed worldwide to ensure quality is
maintained. A multitude of ice cream flavours are offered to whet one’s
appetite and tantalise one’s taste buds. The unique manner in which the ice
cream flavours are named (e.g. Turtle Soup, Chubby Hubby), and the interesting
combinations of ingredients inside each ice cream help to promote a fun-loving
and hip image. This develops every Ben & Jerry’s experience into something
different.
Takeaway tub packaging comes
with bright colours and lively designs, making the containers a visual treat.
Scoop Shops are decked out in bright and lively hues and fitted with
interesting furnishings, making them stand out from their competitors and
drawing crowd attention in the process. No two store designs are identical,
offering customers a different experience each time. This adds a touch of
uniqueness to every Ben & Jerry’s product, making it a novelty.
3.2 MICROENVIRONMENT – EXTERNAL FACTORS
3.2.1 POSITIVE PUBLIC PERCEPTION
Ben & Jerry’s has
established for itself a reputable brand name in the local market. In part,
this is done through numerous promotions such as the annual ‘Free Cone Day’ and
ChunkFest, where the public gets to try out the various flavours of ice cream
that Ben & Jerry’s has to offer. This promotes awareness amongst the public
and helps stimulate brand loyalty. Campaigns like ‘Do The World a Flavour’,
where the public gets to develop an all-new ice cream flavour and submit it, lets
consumers have a personal involvement with the company.
Their dedication to
environmental efforts, such as the use of 90% renewable paper stock to manufacture
their ice cream tubs; the use of recycled paper to manufacture paper napkins
that are used in-store; and their commitment to Fair-trade, a product
certification system designed to allow people to identify products that meet
agreed environmental, labour and developmental standards may leave an impact on
the public who potentially feel a sense of self-gratification – in that they have
indirectly contributed to environmental causes.
3.3 MACROENVIRONMENT
3.3.1 POPULATION DEMOGRAPHICS
The total population in
Singapore as of 2009 is estimated at 4,987,600 people, of which 1,155,000 falls
within the age group of 20 – 40 years old (refer
to Appendix 1).
3.3.2 ECONOMIC INDICATORS
According to the Monetary
Authority of Singapore (MAS), the Singapore economy experienced a rebound from
the 3rd quarter of 2009. GDP is expected to grow between 3 – 5% in
2010. Economic growth was experienced in the service sectors, especially in the
food & beverage industry. This shows that Singaporeans are embracing luxury
activities such as dining out, despite the economic downturn in 2008.
With the opening of the
Integrated Resorts at Marina Bay and Sentosa, tourist arrivals are expected to
increase. Outlets located in these locations are bound to increase revenues.
Increased tourist arrivals will significantly expand the potential customer base
for the food & beverage industry to tap on.
3.3.3 POLITICAL & LEGAL SITUATION
Simplified regulatory
procedures make setting up of new stores and dining concepts easier than
before, contributing to the influx of innovative and refreshing dining concepts
never seen previously. It will be ideal for Ben & Jerry’s to hitch onto
these benefits so that it can increase its reach to consumers.
3.3.4 CHANGES IN CONSUMER PREFERENCES
Consumers aged 26 – 40 have
different preferences compared to the previous generations. This group eschews
traditional desserts such as cheng tng and
ice kachang in favour of
Western-style desserts such as ice creams and frozen yoghurt. For many, ice
cream has become the staple dessert of choice to combat a hot afternoon
especially in the local climate.
3.4 TECHNOLOGICAL ADVANCES
Ben & Jerry’s has
benefitted from improved technology, not just in production but also the
Internet, which helps to increase word-of-mouth awareness of its products
through online discussions, commentaries and food reviews and websites such as
HungryGoWhere.com amongst others.
Social networking websites
such as Facebook and MySpace provide consumers the opportunity to become “fans”
of Ben & Jerry’s. This offers them a platform to share information and
interact with one another.
3.5 COMPETITORS
Ben & Jerry’s has
numerous competitors in the Singapore market, ranging from established brands
such as Swensen’s and Häagen-Dazs, to home-grown setups such as Udders and The
Daily Scoop. These competitors offer a different variety of ice cream options
at different prices, and cater to different demographic groups. Some of these
competitors provide complements such as full service dining to capture a wider
share of the market (refer to Appendix 2).
4 SWOT ANALYSIS
|
Strengths
-
Established
brand name with a long heritage
-
Positive
and outgoing workforce
-
Environmentally-friendly
corporate practices
-
Strong
overseas franchises
-
Unique
shop layout and ambience
-
Wide
variety of ice cream flavours
-
Different
packaging varieties to go with ice cream
|
Weaknesses
-
Outlets
mainly located in the central shopping districts of Singapore and in tourist
attractions. Not accessible to the masses
-
Pricing
considered too steep to certain markets
-
No
other promotions aside from Free Cone Day
-
Scoop
Shop design may not appeal to adults
-
Emphasis
on environmentally-friendly corporate practices may result in increased cost
burden
|
|
Opportunities
-
Expand
reach by offering catering services for events
-
Allow
consumers to mix-and-match their favourite ice cream combinations
-
Opening
new outlets in the latest tourist spots such as Integrated Resorts to boost
sales.
-
Various
promotional strategies other than ‘Free Cone Day’ to attract crowd attention
-
Shift
focus towards delivering healthier desserts to cater to the health-conscious
crowd.
|
Threats
-
Market
saturation in the ice cream industry.
-
Other ice
cream companies focus on the quality of ice cream instead of the ice cream
content
-
Changing
consumer preferences towards healthier desserts
-
Increasing
commodity prices
|
5 OBJECTIVES
5.1 Corporate Objectives
Ben
& Jerry’s aims to create and foster the 4 E principle – being an Exquisite brand, maintaining an Exclusive profile image, carving out an
Established household name in the
market, and supporting Environmentally-friendly
practices. We plan to work towards positioning Ben & Jerry’s as an
exquisite ice cream brand, delivering superior quality treats by using the
finest ingredients.
By
maintaining an exclusive profile image, we aim to offer distinctive and
value-added services to all our customers – giving them a pleasant and
memorable experience at Ben & Jerry’s. We work towards attaining a
household name, such that Ben & Jerry’s will be the first name on one’s
mind when thinking of ice cream. By championing environmentally friendly
efforts, we hope to be viewed as a corporate role model and create social
awareness about the importance of these causes.
5.2 Marketing Objectives
5.2.1 Product / Market Expansion Grid
|
|
Existing Products
|
New Products
|
|
Existing Markets
|
Market Penetration
|
Product Development
|
|
New Markets
|
Market development
|
Diversification
|
Table 5.1 Product / Market Expansion Grid
Based
on the above diagram, Ben and Jerry’s is moving towards Market Development by
targeting a bigger target group and Product Development by reinventing the ice
cream concept to meet consumer desires and needs.
5.2.2 TARGETED Marketing Objectives
From
Jun 2010 to May 2011, we aim
to achieve the following marketing objectives:
i)
Launch
of new Scoop Shops in the following locations
-
Resorts
World Singapore (RWS)
-
Marina
Bay Sands (MBS)
-
Serangoon
Central (NEx Shopping Mall)
ii)
Achieving
90% brand awareness and increasing overall annual sales results by 20%
iii)
Introduction
of enhanced dining concepts and variations to the menu.
iv)
Launch
of a customer rewards program to build customer retention and brand loyalty.
v)
Maintaining
the exclusive brand image by exposing customers to a distinctive level of
customer service.
6 MARKETING
RESEARCH
Primary and secondary
research information was used to assess Ben & Jerry’s market potential as
well as to determine our target market’s preferences.
6.1 PRIMARY DATA
6.1.1 SURVEYS
Two hundred surveys (refer to Appendix 3 and 4) were
conducted to find out the
- General consumer preferences towards ice cream
- Market responsiveness to Ben &
Jerry’s
- Potential locations for future Ben
& Jerry’s Scoop Shops
- Potential ideas to improve the
overall Ben & Jerry’s experience
100 street surveys were
conducted at Raffles Place, Tanjong Pagar and City Hall during lunch hours –
11.30am to 2.30pm. 100 online surveys were also conducted. These surveys were
evenly distributed amongst respondents with different occupations and different
age groups to minimise any potential bias.
6.1.2 OBSERVATIONS
The majority of the patrons
at Scoop Shops on weekdays are mostly teenagers or young adults. During the
weekends, though the demographics are largely similar, there are also families
with children having ice cream and even older adults. Outlets with live bands
generally have lower customer turnover, as people tend to linger and watch the
performances on offer whilst savouring their ice cream.
6.2 Secondary Data
Sources of secondary data
used include Internet resources, journal articles and newspaper cuttings.
7 Market SEGMENTATION
7.1 SEGMENTATION STRATEGIES
Figure 7.1 Segmentation strategies
We
will be utilizing a differentiated segmentation strategy so as to attract
distinct target markets. These target markets and their demographics are
covered in greater detail in later sections.
7.2 Primary Target Market
Our
primary target market consists of working adults and professionals. This also includes
young parents. They are from the Generation X and Y groups with high disposable
incomes and increased purchasing power. Correspondingly, they are generally
willing and have the ability to fork out a premium price for quality. This group of people like to ‘enjoy life to the
fullest’. To them, enjoying a dessert is not solely about its taste and quality,
but also about the overall experience. Being more mature, they will naturally prefer something more
upmarket, and may distance themselves from Ben & Jerry’s as they feel it
may be too vibrant or youthful for them.
7.3 Secondary Target Market
Our
secondary target market consists of young people from Generation Y who frequent
Ben & Jerry’s as a place to enjoy a day out. This group of people prefer
sweet treats such as ice cream and are generally willing to spend based on
their personal food preferences.
7.4 Target Market Segmentation
7.4.1 Primary Target Market
Demographic
Indicators
§ 26 – 40 years old
§ Male and Female
§ Generation X and
Generation Y
§ Single and Married
§ Middle high and High
disposable Income
Psychographic
Profile
§ Attitudes: Likely to go
for higher-end goods and services and subscribe to the adage - ‘you get what
you pay for’.
§ Lifestyle: Advocates
healthy living and eating habits. Habitual lifestyle.
§ Interests: More likely
to take note the ingredients used and overall quality, as they tend to be more
health-conscious. Ben & Jerry’s has an advantage as all ingredients used
are preservative-free.
BehavioUral
Habits
§
Occasions:
With family, colleagues after work
§
Benefits
Sought: Chilling out at Ben & Jerry’s Scoop Shops will give customers the
opportunity to distress and ‘take things easy’ after a typically hectic work
day. Time spent at the stores potentially strengthens family bonds as well.
§
Usage
Rate: Medium Usage. Health-conscious and generally will not consume ice cream
frequently. More willing to consume ice cream during hot weather.
§ User Status: Potential /
Existing Users
§ Loyalty Status: Soft
Core Loyal. The age group of 26 – 40 will generally be more loyal to a product
and less prone to switching brands.
7.4.2 Secondary Target Market
Demographic
Indicators
§ 20 – 25 years old
§ Male and Female
§ Generation Y
§ Single / In
relationships
§ No fixed Income / Low
Income
Psychographic
Profile
§ Attitudes: Likely to go
ahead with their wants rather than needs.
§ Lifestyle: Enjoy sweet
treats and trying out new concepts. Hence, introducing new flavors will attract
the attention of this group.
§ Interests: Tendency to
seek out fun moments, nice food and new flavors to fulfill their craving needs.
BehavioUral Habits
§ Occasions: Hanging out,
catching up with friends and on dates
§ Benefit Sought: Ability
to catch up with friends and savouring every moment with their loved ones.
§ Usage Rate: High Usage.
Tendency to consume ice cream when they feel like it, especially during warm
weather.
§ Usage Status: Existing /
Potential Users
§ Loyalty Status:
Switchers. Students and teenagers are likely to go for other brands when there
are promotions that appeal to them, or there are new ice cream outlets / parlours
which interests them in terms of attractiveness and pricing. They are less
likely to stay loyal towards a brand.
8 POSITIONING
8.1 POSITIONING MAP
Figure 8.1 Current
positioning of Ben & Jerry’s
Ben & Jerry’s is
perceived as a relatively high quality ice cream brand yet priced competitively.
Häagen-Dazs has a higher perceived quality and price compared to Ben &
Jerry’s as it takes a lead role in placing strong emphasis on quality of their
ice cream. As a result, these two brands are in direct competition within the
premium ice cream industry (refer to Appendix
5).
Viewed in the same vein as
Häagen-Dazs, Ben & Jerry’s has to work on other aspects such as advertising
and promotions to stand out. They have
managed to stand ahead of Häagen-Dazs in the American premium ice cream
industry due to their usage of social responsibility as a marketing tool.
8.2 POSITIONING STRATEGY
To reach out to a larger audience, Ben & Jerry’s strives to be a
youthful ice cream brand that working adults are also comfortable with. Ben
& Jerry is confident that this awareness campaign will lead to the gradual
increase in acceptance of the new brand image. One approach is to re-introduce
the product with a new theme coupled with exceptional store experience, this
will help to attract the target market with a diverse impression.
8.2.1 Product Differentiation
25% of consumers prefer Häagen-Dazs,
while 27% prefer Ben & Jerry’s. (Figure 3.2)
Figure 8.2 Factors
influencing ice cream purchases
The two most important
contributing factors when one purchases premium ice cream are taste and
quality. Häagen-Dazs has the advantage in presentation and quality, however, Ben
& Jerry’s has an advantage in variety as evidenced by its multitude of
unique and interesting flavours.
To remain competitive, Ben
& Jerry’s has to introduce new concepts to appeal to potential customers
whilst retaining its current customer base.
8.2.2 Service Differentiation
Ben & Jerry’s do not have
other value-added services besides its commitment to environmental and social
issues. We intend to rejuvenate the Ben & Jerry’s experience by sticking to
current practices, yet introducing additional value-added services that sets it
apart from competitors and ensures that the company is the first brand on
people’s minds when it comes to ice cream.
8.2.3 People Differentiation
Ben & Jerry’s has
traditionally hired young and outgoing people as ice cream servers (Scoopies).
This has benefits when faced with a young customer base but may not be as ideal
to attract slightly older customers. Accordingly, these staff will be trained on
how to approach young adults in a manner that they will be comfortable with.
A different staff mix can be
employed for the Scoop Shops, especially those that are targeted at different
markets. Young and energetic staff members will be needed at Siloso Beach
whereas a team of more experienced staff will be needed at Dempsey Hill. Such
staffing arrangements will make the individual experience distinctive.
8.2.4 Image Differentiation
Figure
8.3 Customer perception of Ben
& Jerry’s
Comparing across age groups,
35% of consumers above 30 prefer Häagen-Dazs while 20% prefers Ben &
Jerry’s, indicating that Ben & Jerry’s have lost market share amongst older
adults as consumers generally perceive Ben & Jerry’s as youthful (Figure
8.3).
47% of consumers that have
not tried Ben & Jerry’s have no preference in the choice of an ice cream
brand (refer to Appendix 6). This is
an opportunity for Ben & Jerry’s to reach out to this group of consumers. To
drive the impression that Ben & Jerry’s is not just youth-centric,
different types of marketing strategies are employed, targeting young working
adults. These will be elaborated below.
8.3 Overall Positioning Strategy
|
Benefits
|
Price
|
|||
|
|
More
|
The
Same
|
Less
|
|
|
More
|
More for More
|
More for Same
|
More for Less
|
|
|
The Same
|
|
|
Same for Less
|
|
|
Less
|
|
|
Less for Less
|
|
Table 8.1 Overall
positioning strategy
Overall, a “More for Same” positioning
strategy is chosen. We will offer more benefits for the same price that
consumers normally pay. Discounts and promotional offers can be given on
special occasions or periods.
A “Same for Less” strategy is
employed for consumers interested in the new dining concepts on offer, as these
concepts aim to offer them the same benefits at a lower price.
Figure 8.4 New positioning of Ben & Jerry’s
With the new
positioning strategies, the positioning of Ben & Jerry’s is expected to
shift as above.
9 STRATEGIC
MARKETING MIX
9.1 Product
Ben & Jerry’s will be
introducing new products and initiatives to better capture the target markets.
In conjunction with current offerings, these new concepts will potentially
attract more consumers from this group to Ben & Jerry’s and increase brand
awareness.
9.1.1 Chocolate Fondue
We will be introducing a new
concept – a chocolate fondue set – to all Scoop Shops. Similar to that offered
by Häagen-Dazs, consumers will get mini-sized scoops of ice cream in flavours of
their choice, to be dipped inside warm melted chocolate. Waffles and other
assorted condiments can be included upon request.
The chocolate fondue set will
come in various sizes differing in the number of ice cream scoops to cater to
different group sizes. This will allow consumers to have more options based on
their consumption preferences.
9.1.2 Corporate Sponsorships
We will provide sponsorship
for events, both corporate and public, by tying up with events management
companies. This will help to build up brand recognition and provides positive
publicity for Ben & Jerry’s. For instance, in-store gift vouchers can be
given out as road show or lucky draw prizes, or having Ben & Jerry’s ice
cream serving stations at receptions. With increased brand recognition comes
increased revenues.
9.1.3 Junior Scoop
Stretching the product line
downwards, a new junior-sized serving will be introduced. To be called the
Junior Scoop, this option has a smaller
serving compared to a regular ice cream scoop. This will entice parents with
young children to have ice cream, as the serving size is child-friendly.
Small
eaters also stand to benefit from this reduced serving size, as they will be
able to enjoy their favourite ice cream without worrying about being unable to
finish it.
9.2 Price
Figure 9.1 Customer
satisfaction (price-wise)
62.5% of respondents felt
they are satisfied with the current pricing strategies of Ben & Jerry’s.
For the new concepts being introduced, promotional pricing will be applied to
gain market share and recognition amongst consumers.
9.2.1 Pricing For New Concepts
Pricing for these new
concepts will be on par or slightly less than that of competitors. As the
Junior Scoop is a new concept, it will be priced less than a regular single
scoop due to the smaller size. The chocolate fondue set will adopt a
market-penetration pricing for an initial start to capture a larger market
share. It will be priced slightly less and provide greater customer value
compared to what Häagen-Dazs is currently offering.
9.3 Place
Other than introducing new
outlets in various regions of Singapore, we will also focus our attention on
revamping and refreshing selected outlets with novel ideas to better attract
young adults and families to the Ben & Jerry’s experience.
9.3.1 New Scoop Shops
We will be launching three new Scoop Shops in
the two Integrated Resorts (IRs) and at NEx. These locations have potential for
high human traffic as they are up-and-coming locations for shopping and
leisure.
The two IRs will bring in tourists and locals
alike who are also likely to visit the shopping and dining areas of the
resorts. With the projected large human traffic, Ben & Jerry’s is assured
of a sizeable captive market.
NEx Shopping Mall, integrated
with the busy Serangoon public transport hub, aims to be the one-stop shopping
location for the North-East of Singapore. As survey respondents indicate they
would like to see Scoop Shops in this area (refer
to Appendix 7), NEx would be a suitable location to open a Scoop Shop owing
to its geographical location.
9.3.2 Scoop Shop Ambience
Selected Scoop Shops will
undergo slight modifications to the interior to cater to the needs and desires
of different groups of consumers.
Scoop Shops located at MBS
and The Cathay will have a ‘Cosy Corner’ within the premises. This corner aims
to let couples enjoy their ice cream in cosy comfort and privacy. As 14% of
respondents indicate that they would patronise ice cream stores when on a date
(refer to Appendix 8), we are
confident that this move will reap dividends.
Scoop Shops located at RWS
and NEx Shopping Mall will have a play area located within their premises to
attract families with children. Parents will be able to enjoy their favourite
ice cream while their children have fun at the play area.
The Dempsey Hill Scoop Shop
will incorporate both concepts as it is the flagship Scoop Shop. By doing so,
it will allow us to assess the viability of implementing each option and the
possibilities of expanding these to other outlets.
The stores will continue to
operate normally during the renovation period to minimise disruption to
customers.
9.4 PromotionS
As with any other company, we will embark on
both sales promotions and to better capture our target markets, enhance brand
awareness and boost corporate image.
9.4.1 Sales Promotions
We will be launching the
following initiatives – customer reward cards, commercial tie-ins and discounts
to promote customer retention and to gain new market share (refer to Appendix 9).
Having patronage rewards will
encourage consumers to revisit Ben & Jerry’s. A customer reward card will
be introduced. Every $10 purchase entitles customers to a stamp. Collecting
five stamps will entitle the cardholder to a free single scoop of ice cream,
and collecting ten stamps will entitle him to redeem a $20 in-store gift voucher
to be used on subsequent visits with a minimum spend of $30. This reward card
will be valid for six months from date of initial purchase.
Tie-ins with the Singapore Zoo, Jurong Bird
Park, Night Safari and RWS, where there are Ben & Jerry’s Scoop Shops, will
be launched. Visitors only need to produce their admission ticket to the
attraction at the specific outlets to get $10 off their ice cream purchase with
a minimum spend of $20. The admission ticket discount will be honoured for a
month from date of visit.
To commemorate Valentine’s Day, patrons of
Golden Village VivoCity will enjoy 20% off the chocolate fondue set upon
flashing a pair of movie tickets.
Pamphlets will be distributed
in areas with heavy human traffic to entice consumers to try out the new
concepts and get acquainted with it. An introductory discount of 10% will be
given with every purchase of the chocolate fondue set; and 50% off the Junior
Scoop with every ice cream purchase to encourage potential customers to try
these new items. This promotion will last for 2 months.
9.4.2 Advertisements
We will utilise the following
mediums to enhance brand image and to introduce the newly launched concepts to
the public (refer to Appendix 10).
All-over bus advertising
All-over advertisements will
be placed on two double-deck buses that ply routes going through the CBD into
the heartlands for six months. By doing so, this will ensure maximum visibility
and reach to the public. These advertisements will focus more on brand
awareness and recognition.
Media advertising
Media advertising methods,
consisting of radio advertising, pamphlets and bus stop billboards will be
implemented. The radio advertisements, to be aired on Class 95 FM and Yes 933
FM during the morning and evening hours, will focus on promotion of new outlets
and products. Strategically placed billboards will showcase new outlets and new
concepts, and pamphlets, to be given out on the streets, will advertise new
outlets and promotional offers.
10 IMPLEMENTATION AND CONTROL
10.1 ACTION PLAN
An
action plan has been drawn up, lasting 50 weeks from June 2010 to May 2011.
This incorporates the various advertising, implementations, outlet openings,
renovations and promotional activities in detail to tie in with our marketing strategies
(refer to Appendix 11).
10.2 CONTROL PROCESSES
These include formal marketing controls and informal
marketing controls essential to controlling marketing plans and establishing
performance standards.
10.3 Formal
Marketing Control
10.3.1 Employee Recruitment and
Selection Process
The Human Resources Manager
will conduct a job interview to assess all applicants on their individual
abilities to perform the duties. Only candidates who exude a cheerful and
outgoing disposition will be considered for the job. This is to ensure that all
Ben & Jerry’s frontline staff have the required communication skills to
handle daily operations.
10.3.2 Employee Training Programs
All
managers will be sent for training to better equip them with knowledge, skills
and efficiency to lead a team of workers effectively. Training programs
encompass product knowledge, customer service and leadership skills. All outlet
managers are expected to know the daily in-store operations flow and keep
abreast of the latest updates in the ice cream industry.
Outlet managers will also conduct personal
training with new staff to help them settle down and equipped with the
essential skills to perform their work. This ensures minimal hiccups and that
business operations are running smoothly in the hands of a team of specially
trained workers.
10.3.3 Distribution
Control Standards
Distribution,
especially at new outlets has to be evaluated to ensure that substantial
profits are made. New outlets will be monitored closely to determine its
profitability and market niche. Sales reports will be collected and collated
monthly. If a particular outlet is suffering from more than 15% losses for one
quarter, the sales manager has to review the situation and identify possible
causes to justify it. Also, individual outlet managers have to distinguish the
market niche that the store targets. All these should be reported and presented
during the monthly sales and performance meeting.
10.3.4 Product Performance Standards
The
marketing department will liaise with the finance department to
set performance benchmarks for the new products being marketed and launched. Performance standards include sales for the period and feedback from the public through feedback forms. New products such as the junior scoop and chocolate fondue will be monitored closely for the feasibility and profitability of these new product strategies.
set performance benchmarks for the new products being marketed and launched. Performance standards include sales for the period and feedback from the public through feedback forms. New products such as the junior scoop and chocolate fondue will be monitored closely for the feasibility and profitability of these new product strategies.
Individual
sales reports and feedback forms will be collected and collated monthly. If a
particular product has negative sales results and more than 40% dissatisfaction
for a quarter, the sales manager has to review the situation and identity the
possible causes. This will be brought up during the month-end sales and
performance meeting, and rectified with new strategies.
10.3.5 Promotional Activities Standards
Advertising
and promotional efforts have to be evaluated to ensure maximum effectiveness.
Advertising and promotional activities will be monitored based on level of
sales driven up for that particular period and the market responsiveness
towards the advertising and promotional campaigns. The marketing manager has to
review the respective advertising and promotional campaigns to determine the
most effective medium to boost sales and determining market responsiveness. If
the advertising and promotional campaigns have not increased sales by 20% for
that period, the marketing manager has to reassess the problem and determine a
possible cause. This will be highlighted during the quarterly sales and
performance meeting, and tackled with new approaches.
10.3.6 Marketing Audits
A
marketing audit will be conducted annually to assess and review the company’s
marketing activities. The key areas to be monitored include:
·
Sales
performance for the year by measuring sales variances. Forecasted sales figures
are compared with actual sales figures to monitor discrepancies. This is to
exercise systematic examination of the overall sales performance. The finance
manager will be responsible for collating and analyzing the sales performance
figures in a detailed report.
·
Effectiveness
of the marketing mix adopted. It will be evaluated based on the timeliness and
profitability of the various marketing strategies employed. Total time invested
for the respective marketing strategies will be measured in contrast to the
revenue earned. The finance manager will be in charge of collecting the
respective data to analyze critically on the feasibility of the marketing mix.
A detailed report outlining the profit / loss for each marketing strategy will
be prepared.
10.4 Informal Marketing ControL
10.4.1 Employee Work Attitudes Evaluation and
Control
There
should be constant evaluation of employees’ work commitment and personal
development as employees help drive the success of the company. Awards and
incentives should be given to reward hardworking employees and motivate them to
work harder. A year-end dinner and dance function will be conducted annually to
reward employees for their contributions in the past year and celebrate the
company’s success.
Employees
are also given appropriate authority in sharing out novel ideas in which they
have for the company through a staff feedback system. This is to encourage
openness and create a platform for the exchanging of information.
A
monthly newsletter will be enacted to foster stronger commitment and keep the
management and staff updated with the activities taking place for the past
month. All outlet managers will conduct a monthly meeting with the employees to
share the views of the company, what they intend to achieve the following month
and to call upon for any opinions and ideas in installing plans for next month
activities.
10.5 Contingency Planning
In the event of unsatisfactory sales performance and
poor market response to the new products, a new round of promotional activities
will commence to heavily publicize these products in view of gaining more sales
and recognition.
If renovation works for new outlets and selected
existing outlets are delayed, it will mean additional incurred costs for the
company. Ben & Jerry’s will have to postpone the opening of affected
outlets and call for an emergency meeting with the directors to decide on
alternative solutions to tackle the present situation and find out the
underlying cause for the delay. The operations manager has to emphasise on due
completion of the renovation works as soon as possible.
If advertising and promotional activities are ineffective,
they will be removed when the contract is complete. The marketing manager has
to review the ineffectiveness of the advertising and promotional activities
undertaken and partake in more intensive market research. Accordingly,
adjustments will be made before moving on to another round of advertising and
promotional activities that better appeal to the market, increasing revenue and
brand awareness.
11 FINANCIAL FORECASTS
Sales
and expenses forecasts are used to provide a financial overview of our proposed
marketing strategy. This is to illustrate the relationship between the activities
and the expected sales revenue for the upcoming year. The projected income
statement for the entire duration of the action plan is as follows:
|
Account
|
Item
|
Amount ($)
|
Sub-Total ($)
|
Total ($)
|
Description
|
||
|
SALES REVENUES
|
|||||||
|
Sales
|
|
19,872,000
|
Sales forecast determined by taking 20% of the population aged
26 – 40, 70% (regular scoop), 10% (fondue), 20% (junior)
|
||||
|
Commercial
Tie-Up Revenue
|
|
220,200
|
|
||||
|
Reward Cards Revenue
|
|
700,000
|
|
||||
|
Total Revenue
|
20,792,200
|
|
|||||
|
|
|||||||
|
COST OF GOODS
|
|||||||
|
Junior Scoop
|
828,000
|
|
|
Junior Scoop at $1.00 per unit sold to 20% of the target
population
|
|||
|
Regular Scoop
|
3,864,000
|
|
|
Regular Scoop at $2.00 per unit sold to 70% of the target
population
|
|||
|
Chocolate Fondue
|
3,450,000
|
8,142,000
|
|
Chocolate Fondue at $12.50 per unit sold to 10% of the target population
|
|||
|
Gross Profit
|
12,650,200
|
|
|||||
|
|
|||||||
|
EXPENSES
|
|||||||
|
Advertisements
|
|||||||
|
Bus
|
64,400
|
|
|
2 Double Decker bus advertisements for 6 months ($32,200 each)
|
|||
|
Radio
|
47,760
|
|
|
MediaCorp radio advertisements on YES 93.3 FM at $9,480 per
month and Class 95 FM at $14,400 per month
(2 months each) |
|||
|
Flyers
|
360
|
|
|
12,000 copies of flyers (3 cents each)
|
|||
|
Billboards
|
12,600
|
125,120
|
|
Orchard, Raffles Place, HarbourFront ($2400)
Raffles Place, Dhoby Ghaut ($1300) Serangoon, Sengkang, Hougang ($1800) (2 months each) |
|||
|
Promotions
|
|
||||||
|
Reward Card
|
158,200
|
|
|
7,000 cards at $0.60 per card
|
|||
|
Commercial
Tie-Up
|
340,000
|
498,200
|
|
$10 vouchers (2000 pcs) given out. Royalties paid to supporting
merchants are included.
|
|||
|
Renovations
|
|
||||||
|
Cosy Corner
|
18,000
|
|
|
2 cosy corners in existing outlets (Cathay, Dempsey).
|
|||
|
Children’s Play Area
|
8,500
|
26,500
|
|
1 play area in existing Dempsey outlet.
|
|||
|
Set-Up Cost
|
|
||||||
|
New Outlets
|
|
181,500
|
|
Total of 3 outlets, Marina Bay Sands (with Cosy Corner), Resorts
World Sentosa and Serangoon Central NEx (both with Children Play Area) scheduled
to open.
|
|||
|
Rental
|
|
||||||
|
Existing Outlets
|
1,682,400
|
|
|
|
|||
|
New Outlets
|
302,000
|
1,984,400
|
|
|
|||
|
Salary
|
|
||||||
|
Wages
|
787,320
|
|
|
|
|||
|
Bonuses &
Incentives
|
7,500
|
794,820
|
|
$200 for each full timer and $300 for each manager for a total
of 15 outlets
|
|||
|
Staff Training Courses
|
|||||||
|
Training Cost
|
|
6,000
|
|
|
|||
|
Discounts
|
|||||||
|
10% off fondue set
|
27,000
|
|
|
|
|||
|
50% off Junior Scoop
|
70,000
|
97,000
|
|
|
|||
|
Utilities
|
|
|
|
|
|
||
|
Electricity &
Water
|
|
302,000
|
|
$1000 for 5 small outlets, $2000 for 5 medium and $4,000 for
Dempsey outlet. Pro-rated utilities for Serangoon Central NEx (7mths),
Resorts World Sentosa and Marina Bay Sands (both 10mths)
|
|||
|
Total Expenses
|
4,015,540
|
|
|||||
|
Net Pre-Tax Profit
|
8,634,660
|
|
|||||
Table 11.1 Projected
income statement
Detailed
financial breakdowns (budget, monthly profit & loss statement) can be found
in Appendix 12 & 13.
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