Marketing project [pic] ARNOULD Paul CROISEY Julien DZIUBEK Martyna GRISARD Philippine 1. The situation analysis3 1. 1. The environment (Demographic, Economical, Natural, Technological, Political, Cultural, Legal forces)3 1. 2. The industry4 1. 2. 1. Rivalry among existing competitors4 1. 2. 2. Threat of new entrants5 1. 2. 3. Threat of substitute products5 1. 2. 4. Bargaining power of suppliers6 1. 2. 5. Bargaining power of buyers. 6 1. 3. The firm6 1. 3. 1. The company mission7 1. 3. 2. The company objectives and goals…………………….. 7 1. 3. The business portfolio7 1. 4. The marketing Process for one company’s offer9 1. 4. 1. The marketplace :9 1. 4. 2. The marketing strategy12 1. 4. 3. The marketing program13 2. SWOT analysis18 3. Evaluation of the company’s marketing strategy and recommendations19 BIBLIOGRAPHY21 1. The situation analysis 1. The environment (Demographic, Economical, Natural, Technological, Political, Cultural, Legal forces) Miko is one of the biggest brand on the ice cream market. Before studying the company, we are going to look at the environement, the ice cream market.
Miko is part of the Unilever group, Unilever is one of the three worldwide group on the market with Nestle. Those two different groups are composed of the major ice cream brand, for example Unilever (Miko, Carte d’Or, Ben and Jerry’s…) and Nestle (Mystere, La Laitiere…) [pic] (MDD = Marque de distributeur for example carrefour, auchan…) In 2002 ice cream sales reached 13 billion litres in the world. The biggest producers are the USA with 61 millions hectolitres for 2002, and the other big producer is China with a production of 24 millions hectolitres.
France is far from this standard with less tan 2 millions hectolitres a year. The largest consumers are off course American people with 22. 5 litres a year just behind we can find the Canadian and the Australians with 17. 7 litres. Every brand have is own strategy, we can speak about Haagen-dazs who commercialize luxury ice cream. Miko has the particularity of dealing whit sevral different segment of the ice cream market. [pic] Miko commercialize ice cream on all those segments exept the luxury one. That one of the reasons of the success of Miko, is capacity of diversification.
The ice cream market had always had to deal with two big problems, the fact that people consume ice cream mostly during summer, and the fact that some societies have different culture of ice cream consumtion. For eample french consumption reach six litres of ice cream during a year, in comparaison american people consume around twenty-two litres a year. [pic] To conclude the environmental part let’s talk about the way of consumption of ice cream, it deapends on witch society you look at. the graph just over shows us the place where french people consume ice cream.
We can see that they ot a little bit more ice cream at home but it’s nearly the same thing. Compare to other countries like USA it’s a really different way of consuming ice cream, because american people are used to consume ice cream mostly at home. This is one of the important fact of the ice cream market, because consumer behaviour are influencing packaging, a home consumption product do not require the same package that a outdoor ice cream. 1. 2. The industry 1. 2. 1. Rivalry among existing competitors The ice cream market is highly concentrated. There are three multinational corporations which represents 80% of the market: Unilever (Miko, Cornetto, carte d’or, solero, magnum, ben & jerry’s, vienetta ) – Nestle (La laitiere, Frisco, Extreme, Motta, Mystere, Sveltesse) – General mills ( Haagen Dazs) As we can see, this market is an oligopoly. However, rivalry is very strong: the three of them are focusing to increase their share market. The main strategy is to acquire other brands to enlarge their client range of customers. For example, in 2000, Unilever bought Ben & jerry’s through a takeover to an amount of 326 m$. In France, Nestle and Unilever both own around 30% of the ice-cream market. 1. 2. 2. Threat of new entrants
Making an ice cream doesn’t involve big investments. Anyone can create an ice-cream to launch on the market. It would logically be sold in a local area first but if the ice has success, it would not be long until the brand develops its own marketing plan. However, it would be a long way to be part of the oligopoly. There’s an important seasonal factor for new entrants. In France, many small businesses are integrated to local areas. On the seaside, different ice cream brands like Miko (http://www. ijsboerke. be/fr/export/ijsboerke-export-intro. html) benefits from summer and tourism to assure a close B-to-c.
To sum up, the product doesn’t need a complicated R&D branch or other heavy investment. New entrants can easily enter the market on a restricted area. The difficulty will be to spread it world widely because of the oligopoly of Unilever-Nestle-gm. on a large scale, the threat is not very disturbing for them. 1. 2. 3. Threat of substitute products Many products can substitute an ice-cream. However, ice cream remains the most appreciated product on the beach. This is already one of the best-sellers during summer. People like to eat an ice cream at the end of a long and substantial meal.
We can have a look at this survey which confirms the preference of vacationer for ice-creams: Sur la plage, vous grignotez plutot : 48. 2% Vous ne grignotez pas 24. 1% Un batonnet de glace 8. 8% Une pomme 7% Des chichis 6. 2% Un beignet fourre 5. 2% Des cacahuetes grillees et caramelisees Find this poll on: http://www. linternaute. com/femmes/cuisine/questionnaire/fiche/7535/d/f/1/ 1. 2. 4. Bargaining power of suppliers Miko had to create partnership with different producers so as to supply its production of ice cream. For example, they have different partners as milk producer, and the others ingredient’s producers.
They work with these producers ethically and they respect environment for their production. They work also with Max Havelaar as a partnership to have respectful and ethical product. But the most important thing for Miko Company is to trade fairly with producers and customers. Also they try to control everything during the production; they test ingredients suppliers, check machines so as to supervise the quality of their product. 1. 2. 5. Bargaining power of buyers As we are studying the market of ice cream, we have to specify that it is very different in each country. In France, people are used to eat ice-cream at home or in cinema.
Miko realized that they sell a lot of ice cream in cinema and in small shop. These ice-creams are not selling as Hagen Daas in alternative channels like Domino’s pizza which offer ice cream in a menu. So the customer has a very low bargaining power in the market of ice-cream. Sometimes prices varied according to the other brand but in the mass distribution, there are no real effects. 1. 3. The firm 1. 3. 1. The company mission Nowadays Miko focuses in the same mission than his beginning. They produce ice cream with different brand like MAGNUM, Cornetto etc… and they also keep in creating the history of their brand.
During the 50’s, Miko had introduced their product by various way, in small shop, cinema, in order to create a link with shopkeeper, and finally with their customers. Today, we can find everywhere Miko’s ice-cream. We will explain the company mission with three aspects. First of all, the first aspect of their mission is to make their product profitable. Indeed, each company produces so as to make profit. They use different way to succeed in this way as Miko’s one which is to develop around the world their product with modern production and attractive advertisement. They also try to produce without side effects.
They respect ethics and natural ingredient to aim at respecting the earth and the environment. They propose ethical and convenient product for customers and reduce chemical components and conservatives for their production. Secondly, we can say that the first aspect leads to the second one which is the customer’s satisfaction. So they base their mission on customer’s loyalty. This brand loyalty is created by their customer; they have to listen to their needs and their envies. They propose tasty product, not too expensive and adaptable for all the customers, like for children.
We can also assimilate this mission, as an economic mission: create needs to create profit. Finally, Miko has a social mission. In fact, each company has this mission: creating a need in customers, produce ethical product and improve the life with their strategy. For example, Miko wants to have a central position in the market and in customer’s life, so as to improve the quality. But nowadays they have to combine different things like making profit, being ethical and also limiting side effects like obesity in the world.
For these kinds of problems, they have to propose alternative product, more light, but with the same taste. 1. 3. 2. The company objectives and goals Miko’s company is specialized in various ice-creams. By proposing different sort of ice-cream they also create different customers ‘need. About their objectives, they want to increase the French market, because this market is worse than the market of north of Europe and the United States. By the way, Miko extends his goal around the world with a good strategy of advertisement. Indeed, since the 50’s, they have more than 100 movies to advert their product.
These movies have attractive and innovative scenario and seem to be more adventurer than their competitors. They want to introduce the fact that we can find and eat their ice cream everywhere, in different situations. Another objective of Miko is to outstrip their competitors. As they have a lot of competitors, they have to be more ingenious and innovative, in order to increase the number of customer, and quiet monopolize the market to Nestle. Another goal consists in developing new product, with a modern production, and a fashion advertisement, to be more attractive in the market.
For example with the advertisement of Magnum’s ice cream, very dynamic and based on different pleasure, they show that they can shock customers to increase their needs; and it works! 3. Company’s portfolio [pic] SBU I – Premium Ice-Cream – Carte D’Or & Cornetto & Solero & Magnum SBU II – Family Ice-Cream – Le Miko & Vienetta SBU III – Adult Refresh – Calippo & Frusi SBU IV – Childrens – Rocket & Twister etc. Miko’s activities can be divided into four most important Strategic Business Units. One of them is Premium Ice-Cream (SBU I), which consist of the most famous products e. g. Carte D’Or, Cornetto, Magnum.
The second important unit are Family Ice-Creams (SBU II), which consists of Le Miko ice-creams and Vienetta (more sophisticated, however popular among family costumers). Another group is Adults Refresh (SBU III) in which we can find ice-creams like Solero, Calippo and Frusi. The last unit is devoted to young generation of customers (Childrens – SBU IV). SBU I is a flag activitiy of Heartbrand (Miko). Products among this SBU are mainly “cash cows” (Carte D’Or) or “stars” (Magnum). This means that Core Products have relatively high market share and medium and high market growth rate.
They are the most profitable products thanks to impeccable image created throughout years. Almost all members of this group are easily recognizable in worldwide markets. SBU II products as aforementioned example can be considered as rather “difficult children” with basis to become “stars” on the local markets. Having relative lower market share (as seen in graph – 3%), needs more financial support. However, the existence of regionalized products in local markets is crucial to maintain a leader in long-term. SBU III – Adult Refresh having relative small market share (6%) are also more “difficult children”.
Albeit aforementioned sizes in the market share, products in this group have good position in the segment. Mainly because of well-know name (Calippo) and innovative recapture (Frusi). SBU IV products are targeted at children. Market share in this case is bigger and equals 10%. This is a very good position for this kind of ice-cream. Despite good market share it is crucial to remember that modern society is an aging society. This might lead to decrease form still “difficult child” to the “dog”. However, well-organized marketing communication can avoid this and result in becoming the “cash cow” (ice-cream is mostly adored by children).
Miko as a part of Heartbrand is a part of innovation and investment package. All in all, Heartbrand spends around $50m. annually for R&D, from which 40% is allocated in health and wellbeing sector (e. g. Carte D’Or light). Although, all SBUs reap the benefits from this strategy, the Core Products (Magnum, Carte D’Or, Cornetto) have the priority because of their more permanent presence on the market. One of the main strategies responsible for market share growth is the extended R&D investigations leading to improvements in ice-creams’ industry, which help the company to be a step ahead the competitors.
Not only, in health and wellness sector but also in tastes and flavours’ sector. Differentiation between local markets also helps to properly adjust the products’ offer in order to improve the long-term growth. This also includes variety of names in different countries. These endeavors are aimed to induce customers to identify with the brand and its image. 4. The marketing Process for one company’s offer 1. The marketplace : ? Description of the Buyer Decision Process [pic] In this part we are going to see each point of the graph one by one, we will give a concrete example for the company.
Here the product of the company that we have chosen is “magnum” • Need or problem recognition : Internal stimuli: Magnum is a special ice cream, it’s not a regular ice cream. So we can say that when people are hungry they don’t really think of Magnum in the first place. External stimuli: in the case of Magnum ice cream, friends are the perfect external stimuli to make people buy the ice cream. If anybody in the immediate entourage likes the product. • information search : Personal sources: friends and family because it is here about a “tendency” product, the social group influence is really strong.
TV and radio campaigns are also personal sources. In the Magnum marketing strategy this are really important factors. We all remember the ad in every cinema before the begening of the movie. Experimental sources: that’s a key point like for all other food’s products. Sometimes the customer prefer to create is own opinion by testing the product. If the product was appreciated by some people of the entourage the potential customer mostly agree to try the product. In the case where nobody in his entourage likes the product, there are few chances that he decides to try the product. • Evaluation of alternatives:
For Magnum the consumers buy on impulse and rely on intuition… It is indeed a product which we do not envisage to consume, but who at the time makes us desire. The TV ads wants to make the customer believe that Magnum is all about pleasure and desire… • Purchase decision: The consumer takes the decision to buy or not and consume the product. In this decision there is two important factors : – the price : take part of it – The behavior of the group to which the consumer belongs : it’s also very important in the purchase decision. If is immediate entourage is use to by and consume Magnum the cuctomer will want to try and buy the product. Post-purchase evaluation : The post-purchase decision starts after that the customer had consumed the product. Here the customers do the evaluation of Magnum according to “Expectations of the Product’s Performance” “Product Perceived Performance” for magnum the taste is the principal indicator, but there are other factors for Magnum, for example the design, the color of the ice cream, the aspect… Thanks to this model of the buying decision process of the customer we have seen the complete way of buying for a Magnum customer. The last point that is very important in the buying decision is the determination of the consumer to buy the product. Factors affecting the consumer behaviour [pic] External influencesInternal influences Thanks to the graph we can see that the customer behavior is influenced by internal and externals factors. For the external factors culture is the most basic cause of a person’s wants and behavior. For the Magnum we can say that the fact of being commercialized only in Europe make the customer decision process can be linked to a special culture, a European way of consuming ice cream. It’s important to understand that people in Europe consume in a different way than American and Chinese…
Magnum ice cream is not consumed in some areas of the world for cultural reasons: we can quote Africa for example where the, consumption of this product is not usual and current. The behavior of the consumer also depends on groups of membership, the family and the place of the consumer in these groups, those factors are social factors. When studying the ice cream consumption we can say that it is variable from one family to another for example. There are also internal factors which influence the customer behavior, which concern psychological and personal aspects.
By considering the personal factors we have to speak about the old of the consumers, this is one of the most important factors. We can say that the principal customers of Magnum are teenagers and young adults. . That’s why magnum ice cream is sold in special places like cinema, snacks, place that young people like. We can also talk about the ads for the product that are for sure made for the young people. Motivation, perception, learning, beliefs, and attitudes are psychological factors which affect the consumer behavior. Thos factors are really difficult to identify and to evaluate because they are individuals 2. The marketing strategy Market segmentation criterion Ice cream is a product that can be consume by everybody. We can say without hesitations that when a customer buy a Magnum is for an occasion, it’s not regular like other product. The best example for Magnum is a young couple going to the cinema and buying two ice cream to consume during the movie. The packaging of Magnum make this ice cream easy to eat everywhere, you don’t need a spoon or a plate. That’s a behavioral strategy used by Miko for is Magnum product. The market can be divided in there different groups of customers: occasions, benefits sought, usage rate and loyalty status.
We can think that Miko create benefits sought is large choice of different ice creams, so the customers can try new experiences. That creates usage rate and loyalty status. We can’t define real profiles of segments. Segments are substantial because there are large and profitable enough to serve. ? Target market To select the target market Miko has to watch carefully three different factors. They must consider the size and growth of the segment, the structural attractiveness, and the objectives and resources of the company. Miko’s have decided to put into practice the segment marketing. They offer different products to one or more segments.
They have created different flavor to touch or attract different person. Moreover the fact of creating fun and well design ice creams make young people interest in their product. We can speak about Magnum strategy that is made about love and desire, we can think that the target is couple of young adults. We can also say that Miko’s as a different strategy in all the different countries who commercialize is product. For example we can speak about the different of name between countries, we can see the different expectations of each market, some countries wants quality, and other want quantity for example. Market position Miko decided to adopt a special position on the ice cream market. They have decided to commercialize ice cream well design with a good quality but not to high and regular prices, they are just between low prices ice cream and luxury ice cream. That’s why the strategy of the company is all about simple pleasure in life, like having a good ice cream with your boyfriend while watching a movie. The products are for everyone, so they stay affordable. 3. The marketing program ? Product strategy The product strategy always depends of the product.
First of all we have to remember that ice cream is a perishable good. Miko don’t have any special strategy about the composition, the recipe. We know that more and more brands try to make the customer know and believe that they are using “bio” product. But Miko don’t try to use this strategy because the target of the product (teenagers and young adults) doesn’t really give attention to that kind of information. The most important for them is the price, the taste and the design. The Miko product strategy is simple. They try to commercialize not to expansive ice cream, to be affordable for everybody.
Then they want to give a “fashion” product to the customer. They want a product who can we eat everywhere. Miko tries to make useful and fashion ice cream, to target well young people. The last point is the fact of selling the product at a reasonable price. It’s obvious that creating a product useful and fashion is pretty expansive, but Miko send is ice creams at a pretty low price. We can imagine that they are saving money on the creation of the ice cream, we can say without any doubts that Miko is not using the same product than some of is competitors like Ben ; jerry or Haagen Dazs who are luxury ice cream brands.
The touch more and more customer Miko as a very large product rang, the brand commercialize over 20 different ice creams in Europe. We can see that by the fact of changing the name of the product in every country to be more attractive, sometimes we can find a change in the recipe to be liked in a particular country. In a same country you can find several Miko ice creams, there is the one for family, the one for adults, and the one for kids, for young couple… every different target as is product. To conclude on the product strategy of Miko we can say that they are working more on the way people perceive it than the product quality itself.
Thanks to this strategy the products are for everybody that allows to the brand good prospect for the future but today product quality is a central question in our society so how Miko is going to face that? [pic] Now to better understand the product strategy we can study the life cycle of the Miko’s products: [pic] The yellow cross symbolize the new product in creation in Miko’s factories, we can imagine that they are trying to find new way of producing, packaging, and producing the ice cream. Has we said earlier perhaps they are working on bio products.
The blue cross symbolize the new products of Miko, the ones with new design, new targets… products who had replace older one who had mad the brand known, like Magnum… The Red Cross is for Magnum one of the lead product of the brand but who still commercialized but who begins to decline. ? Pricing strategy Concerning the price strategy, Miko tries to be the more affordable, or seem to be the more affordable. Prices are low when you want to by the ice creams in super market, in pack of six or ten ice creams. But when you want to buy a Miko ice cream in restaurant or in cinemas for example, the ice cream is very expansive.
In a cinema a Magnum cost between two and three Euros. We can think that it’s low prices but it’s really little quantity, so we can say that for the customer the price can seem pretty low but we know that for the brand this is product with a big profit margin. The pricing strategy reinforces the brand image, because people perceive it as a low cost product, so they have the feeling it’s a product for every one. This strategy confirm what we have seen before, the fact that Miko is trying to produce ice cream designed an priced for everybody, young, rich, poor, teenagers… and the price confirms it.
Miko has lots of competitors who commercialize ice cream at the same price and at the same level of quality, but the brand image is very good because of several factors, like for example TV ads, so Miko can be one of the leaders of the ice cream market. ? Place strategy Miko have some intermediaries to sell their products. They are using intermediaries to cut down the number of channel of production. That’s why Miko use as distributors many different places like: convenience stores, restaurant, cinemas, supermarkets, park for amusement, e-commerce, fast food… Here is a sample of the distributors of Miko’s products.
Miko hasn’t got is own retail shop like Haagen dasz or other big ice cream brand but we can speak about the new concept of “cornetto soft” who is a way for Miko to be present in every retails, and sometimes in the street. [pic][pic] ? Promotion strategy Miko has is own promotion strategy, Miko is advertising by many different ways, spots in cinemas, TV adverts, internet interactive website, the Miko museum, newspaper… The strongest promotion strategy is the one in cinemas, during many years, in France, before every movie you had to see a Miko ad.
The fact of creating an online original museum about the brand underline the fact that Miko has a background, an history, and we know that customers are always sensible to beautiful stories, and oldness show that people since a long time trust the brand… We can say that the way of advertising chosen by Miko is traditional, no show campaign, no tee-shirts, no facebook groups, no second life islands, no video games with Miko everywhere.
Perhaps the brand do not use those advertising methods, because it’s really expansive, and they don’t need it because of is oldness, people already well know the brand, now advertising for Miko is just a way of introducing is new products to people. There is another fact that make Miko use a traditional way of advertising, it’s the fact that the targets of the company are various, to gain teenagers support you can’t do the same event, or TV ads than the one to be liked by old people.
Miko wants to be for everybody so it reduce is opportunity of shock advertising, they have to be very careful to still an “everybody brand”. Here you can see two examples of ads for new products, there is nothing else about the new product. That’s why we can say that Miko don’t take any risk in is promotion strategy, and do not need to take any risk because of is oldness. [pic][pic] 2. SWOT analysis LOCATOR OF THE FACTOR |TYPE OF THE FACTOR | | |Favourable |Unfavourable | | Internal |Strengths: |Weaknesses: | | |~ world’s leader in ice-cream market (including French) |~ too big fragmentation of identity caused by implantation of different | | | |names | | |~ ability to tailor products to local customer preferences |~ lack of relevance between the brand-items | | |~ strong reputation among key stakeholders ~ slow development of new products | | |~ vast portfolio (including various tastes and flavours for local |~ relative high prices | | |markets) | | | |~ impeccable quality of the ice-cream |~ too diverse segmentation of the products | | |~ innovation program improving nutrition quality of the products | | | External |Opportunities: |Threats: | | |~ increasing demand for high quality ice-cream |~ Large number of competitors (Nestle, General Mills etc. | | |~ higher customers’ purchasing power |~ bigger health awareness (trend for ‘light’ products) | | |~ improvements in R;D |~ small but constant decrease in ice-creams consumption | | |~ climate change: global worming | | | |~ aging society (bigger need for adult products) | | 3- Evaluation of the company’s marketing strategy and recommendations The SWOT analysis permits to understand which the internal and external factors are, and how a company can manage their opportunities and external factors to solve internal problems. The first aspect is about the European market. In fact we have seen, that Miko is extremely demanded in Europe, more than in the United States, because of the fact that European people prefer eating ice cream at home and not as the American, in street as a “take away”.
There is a big difference about the consumption of ice cream in the world. But, Miko’s market is very big; thanks to the fact that they sell their products in hypermarket, in small outlets and in different kind of point of sale, like cinema, etc… so we can say that they completely adapt their strategy to the European demand. We thought that if Miko wants to adapt his concept in the United States, they will have to create as Ben ; Jerry did various stores only for Miko’s ice cream, to extend their public image, but not in changing the products. Another way for the company to be more known in the world is the marketing campaign, with ads more attractive with something new.
Indeed they already have TV commercial in the world which attracts a lot of consumer but they have to focus on a different target as the USA. If they make this buzz, they could associate to their brand a new image with the American concept, more traditional, and then being more famous, more pleasant for their customers. Also, Miko has to access their new product, on light ice cream. Indeed, nowadays people take care of their diet and ice cream is not a good point. We can think that the ice cream market will fall down because of this aspect, but if Miko try to be more comprehensive and adapt his strategy with lighter product, they will obtain a lot of customer.
Also, we can notice that the American way of eating is really different to Europeans, because they are not fond of dessert too much sweetened as the Americans, so Miko has to diversify his product. It would indeed be necessary for Miko to attribute to its ice creams of the rates of sugar lower for European and more for American market with various products. Soft drinks like Coca Cola diversify their drinks from a country to the other one for example, they change the rate of more or less strong gas or sugar to the countries where they sell. Another point is to improve the environmental issues, being more sensitive of the sustainable development because people take care more and more of this point. By the way, the image of the company could affect in a negative or a positive way their sales.
In using organic and natural packaging they will develop another concept and sale more. They have to do everything possible to be seen as a good corporate citizen by their consumers. For example, they can set up a recycling process for the packaging and communicate to their customers their new concept, because customers aware of it. Another way to be associated as a good corporate citizen, is taking part to an association in favour of the environment issues. This way of selling could be very profitable for the brand image and also for the sale of the company. Another recommendation is to develop more additional product. It could be more profitable for the company to introduce a new kind of product in the market.
As we can see sometimes on the beach, there is Miko’s umbrella, sun glasses Miko, icebox etc… Moreover, they can produce different kind of product, create a diversification for each part of the society, and have a real brand image in all the society. BIBLIOGRAPHY Introduction http://www. journaldunet. com/management/0608/0608150-match-glaces. shtml Mission, objectives and goals http://www. marketingsurvivalkit. com/ Porter Forces: http://www. journaldunet. com/management/0608/0608150-match-glaces. shtml http://www. strategies. fr/ Marketing strategy evolution http://www. lesechos. fr/info/metiers/4720108. htm Target Strategy ; 4P’s http://www. prodimarques. com/sagas_marques/ben_jerrys/ben_jerrys. php http://www. miko. fr http://www. wikipedia. com SWOT analysis http://www. Miko. fr/ Lectures from Mrs Hota Introduction to marketing Book