Simmo’s Ice-Cream Company
Executive Summary
Simmo’s Ice Cream is a company based in Australia established in the year 1992. It mainly deals with ice cream and related products. This report aims at establishing a good marketing plan. Therefore, the paper analyses the company fundamentals using SWOT analysis. On the same note, the paper analyzes the competitive advantage and market positioning of Simmo’s Ice-Cream Company. This report mainly concentrates on how the company can invest in product promotion with an aim of achieving competitive advantage over competitors and other key players in the market. If successfully implemented, this report would greatly assist for the future expansion plans of the company.
Introduction
Simmo’s Ice Cream is a company that specializes in the manufacture of various brands of ice cream. The company has made considerable profits through low production costs, providing quality products and by hiring employees that provide excellent customer service. They have created a new type of various flavors given the increasing market competition from several other companies dealing in the same line of business. It deals with various flavors that include dairy free, lactose-free vegan flavor and latest being Yahava coffee flavor. All this is mainly aimed at achieving customer satisfaction. As a matter of fact, there is increasingly changes in the customer taste and preferences and, therefore, need to meet the customer need and satisfaction.
Simmo’s Ice Cream enjoys a variety of a good customer base ranging from tourists, couples and families on holidays and also corporate partners. The ice cream company based in Dunsborough, Western Australia, has a long establishment history. Having been established in 1992, it has undergone considerable expansion process with their expansive market base. It has a large labor base with their employees going on recess during winter. The Simmo’s Ice Cream is mainly made from the locally available raw materials from scratch with the materials sourced from the surrounding areas of Dunsborough, Western Australia.
| Strengths High investment on innovationMarketing through the internetExpert team of managersEquity in flavors and brandEfficient distribution and supply routesGood reputation from the public | Weakness Few customers and small marketFew products and brandsLow production during winter |
| Opportunities Foreign markets increaseInnovation and new product developmentSales and marketing through the internetNew classes of flavors development | Threats Competition from other Ice Cream manufacturersPoor economic growthChanges in foreign markets and government policiesChanging foreign exchange ratesPrice wars with other manufacturers |
Competitive advantage and positioning and marketing objectives
Simmo’s Ice Cream competitive advantage arises in that it is one of the leading ice cream sellers in Australia. It enjoys a sweet and a long history having been established a little bit longer hence it has won more of the consumer markets. The product already has gained adequate market perception and is, therefore, easy to evaluate on the customer satisfaction basing on previous reports on performances of the brand (Hollensen, 2015).
Customer Feedback is also highly valued and, therefore, gaining a competitive advantage. The differentiation of the product branding is mainly unique and of its own. The unique taste and flavors make it fit for all consumers due to varied consumer tastes and preferences. The affordability and use of locally produced raw materials make it more viable and very tasteful. Most customers would wish to purchase it for the purposes of trying this unique product.
Its planned marketing strategy mainly aims at digitalizing their operations. This is mainly through the use of social platforms for marketing and also employing a technical team to assist in new brand developments and flavors.
Marketing objectives
First, Simmo’s Ice Cream’s major objective is to outshine other competitors in the market for example Unilever of Britain. Also, it aims at increasing its market through facultative and intense advertisements. This will help in increasing the market penetration and obtaining more feedback from the customers.
Target market
The main target markets for Simmo’s Ice Cream products include but not limited to; tourists, both local and international, families who are out on holidays and also foreign markets not exploited. Low and medium class earners are the ideal target market given that the products are pocket-friendly. The young population is also the target market given that they would prefer to eat these ice creams as a hobby and during their time out. This target market can be easily reached through a chain of various selling points. Also, it ought to be distributed through key retailers.
Product Strategy
When packaging and branding of the product, it is good for the manufacturer to use or have more appealing and consumer friendly packages that are affordable (West et al., 2015). Distinctive packaging helps eliminate doubts of similar packages by customers. Packaging using tetra packs also helps improve the shelf life of the Simmo’s Ice Cream products. Marketing mix is also a key aspect of product strategy. This marketing mix is achieved through differentiation in the product, distribution chain, the pricing and also promotion strategies.
Product design
Simmo’s Ice Cream should design the product in a way that reduces production cost. The product should, therefore, economical. The design should be more appealing given that the customers mainly look at the prices, their appearances and also in terms of prestige depending on their class. The technical team should ensure the right flavors are achieved.
Pricing strategy
Pricing based on time is a key strategy given that demand varies with time. For example, the price can be reduced during winter due to the low demand. Similarly, prices can be a little bit hiked on holidays given the demand. Also, prices can be based on the value and flavor of the product. Simmo’s Ice Cream can also apply their role of price leadership in the Australian market by setting up the prices that are to be adopted by other players in the market. Since they utilize price leadership strategy, the company should set prices that ensure there is a higher contribution margin so as to maximize profits and gather for all costs used in the production, distribution, marketing and branding of the product.
Simmo’s should also utilize decoy pricing strategy. That is Simmo’s can offer at least 3 products and give one product for free. This strategy can encourage clients to purchase more products so as to have a similar product as a discount. The company can also set prices of other products to be higher than the others as a strategy of promoting sales of the lower priced products that has adopted decoy pricing.
The company can also set lower prices when introducing new products. This strategy can be adopted so as to make a product familiar and encourage clients to purchase the product and build customer relationship. However, this strategy should be utilized only for a short period in the marketing cycle.
Place strategy
Simmo’s Ice Cream should locate their shops at strategic points that are easily accessible to customers. At the same time, the cost of the distribution channels should be economical. They can also choose to do marketing through the internet to enable an online placing of orders. Evaluation of competitors’ strategies is also a key factor. The management should also evaluate the ability of continuous supply of raw materials, and ensure that the product is adequately supplied within all markets in time. This trend helps reduce shortages in some markets. Also required is an effective invoicing system, supply management and control of stock.
Promotion strategy
Promotion is a critical path in the marketing strategy. Simmo’s Ice Cream should engage in intensive advertisement through it unique branding. Advertising is important as it makes products to be familiar in the market. On the same note, promotion promotes goodwill and build image as well as educate and inform the public about the available products in the market. Also, it should aim at persuading the customers into purchasing their products. This goal can also be achieved through giving out of offers and discounts. Successful advertising can be through the print media, social platforms, window display and use billboards and cartoons. Competitive selling is also a key principle here. Competitive selling plays a critical role when it comes to prospecting and quantifying the product depending on the set prices.
On the same note, Simmo’s should engage in extensive sales promotion. That is they should provide incentives to promote their products and obtain a competitive edge in the market. The company should organize seminars and workshops that can be used to sensitize the customers about Simmo’s products. The company should also exhibit their products in business exhibitions that are organized across the country. These exhibitions are important in showing the products strengths and encouraging customers to purchase the organization products.
Finally, when the organization has expanded, the company should use event sponsorship strategy to promote sales and build customer relationship. The company can consider sponsoring popular events such as football games, charity runs and other events that are dear to the people in the market. This strategy often helps to improve corporate image and encourage customer loyalty and thus organization sustainability in the long run.
Poster
Conclusion
On conclusion, an effective marketing strategy will help the company to expand reasonably. The future expansion plans greatly depend on the company’s ability to put in strategies that will help it achieve market leadership. The products of this company enjoy a large market in Australia and recently foreign markets.
The strategies put in place will help it achieve profitability at the same time giving back to the society through employment and purchasing materials locally (Baker, 2014). Through the application of the SWOT analysis, the company can put in place strategies to outgrow the increasingly changing business environment.
Bibliography
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
West, D., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press.
Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
