Product Description
Our company’s main product will be an alternative brand of Ice Cream products that are flavored with alcoholic beverages, this is a product that at this current time is the first of its kind, and this venture is one that while a very daunting task has become one with a truly unmeasurable ceiling. In today’s world brands like Oreo, Chips Ahoy, Reese’s, M&Ms, and countless other candies have been associated with ice cream brands, so why can’t brands like Budweiser, Jägermeister, Jack Daniels, Fireball, Etc. The answer is now they can be with Koldbrew™ Frosty Suds™. This product can open a new world of opportunities in terms of availability, marketability, and overall profitability.
Market Overview
The below chart is data taken from various ice cream and frozen dessert manufacturers. The provided information shows how many companies there are, sales of the companies, and the number of employees over the course of a 5-year period. According to the Barnes Report(pg.7), the most recent data shows that the total number of establishments is 477(A list of specific industries are listed below). There is also a trend shown year by year in terms of growth, and it shows that the number of establishments are on the rise as of the recent years with going from 2012 to 13’ there was a 1.1% increase and a .8% increase from 2014 to 15’.
The combined sales in the Ice Cream & frozen dessert industry, as of most recent, was $9,175,000,000. From 2011, the sales rose from $8,162,000,000 to the current revenue. With a consistent rise in percentage with a 2.1% rise from 2011 to 15’, the trend here is sales are rising compared to around 5 years ago.
The chart from page 7 of the Barnes Report also provides the average number of employees each establishment has. This is the only data to have a negative trend. According to the table it has a consistent flow of no change until 2014 to 15’ it decreases .3% into the negatives. With this information it can be said that sales are going up, establishments are going up, but employee count is going down.
The 2014 Barnes report has shown that the market environment is currently doing quite well as it seems, as from 11-12 through 14-15 there has been a 1.6% increase in the total number of establishments in the United States and a 4.55% annual average increase in sales. From 12-13, number of Distilleries and Alcohol-making establishments grew by over 7% the most among non-durable goods Manufactuing, as well as a 7% increase in profits.
So, entering the market as a new business cannot only be beneficial to the Company from a perspective of financial gain but can also lead to a widespread growth of regional sales across the country and internationally in countries where the drinking age is lower.
Percent Chg. Year-to-Year
11-12 12-13 13-14 14-15
Establishments 0.7% 1.6% 1.7% 2.4%
Sales ($Millions) 3.7% 4.0% 4.8% 5.7%
S.W.O.T
Strength
• High quality ingredients
• Competitively priced
• Wide assortment of flavors
• Current ice cream market is increasing
• Easy to market
• New market
Weaknesses
• New company
• Unknown brand
• Unknown market
• Limited market
• High cost
• Limited available retailers
Opportunity’s
• Growing market
• New product
• Unique product
Threats
• Huge competitors
• Unknown market
• Limited market
• State and federal laws
• Regulations
• Varying Dairy prices
Competitor Haagen-Dazs
S.W.O.T
Strengths
• Large company
• Widely distributed
• Brand recognition
Weakness
• Steady market
• Growing slowly
Opportunity’s
• New product
• Expanding market
• New market
Threats
• Varying Dairy market
• Expanding alternatives to ice-cream
• Risk in producing new product
Competitor Baskin robins
S.W.O.T
Strengths
• Large brand
• Dedicated customers
• Growing company
Weakness
• More risk due to restaurants
• Unknown market
Opportunity’s
• Growing company
• New restaurant item
• Ability to expand to new products
Threats
• Varying dairy market
• International Dairy tariffs
Competitor Ben and Jerry’s
S.W.O.T
Strengths
• Established business
• Global operation
• Are liked by environmentalists
• Donates over 1 million dollars in charity each year to organizations such as goodwill
• Involved and supportive of global warming, and strengthening family farms
Weaknesses
• Former CEO was convicted of embezzlement in 2006
• Early days had no clear mission statement
• Got bad PR for getting their eggs from a company that was “inhumane” to chickens
Opportunities
• Fat Free ice cream
• Selling to South America/ growing market for ice cream
• Plans for more environmentally safer freezers
• Entering into a weight loss market
Threats
• Any contamination
• Major competitors
• Increasing farm upkeep/costs —> higher milk costs
• Milk supply is down
Competitor Breyer’s Ice Cream
S.W.O.T
Strength
• Established company
• High Quality/Natural Products
• Low Priced
• Wide Variety of flavors
Weaknesses
• Recipe change hurt them- ice cream –> frozen dairy dessert
• Not much of an international market
• High transportation costs
Opportunities
• Large and far more equipped for many other/ different flavors
• Stronger growth with international market
• Consumers looking to be “healthier”
Threats
• Major competitors
• U.S. Market is steady and not much growth
• U.S. Obesity rates are increasing
• Competition with brick and mortar ice cream stores such as dairy queen
Competitor Analysis
Taking a closer look at our competitors, we can see that the ice cream and dairy industry makes its fair share of sales. Specifically speaking it seems as if Haagen-Dazs does really well. As we already know, Haagen-Dazs has their own unique twist on ice cream, granted it is different from alcohol, I feel this could be treated as an open invitation to our idea for this industry. Haagen-Dazs, as well as Ben and Jerry’s, includes very rich and unlikely flavors in their roster. For example, Haagen-Dazs has a flavor that includes salt and fudge truffles. Furthermore, Ben and Jerry’s roster includes an almost unacceptable flavor, toothpaste and orange juice.
Haagen-Dazs is very well known in the community as a high-end Ice Cream company that only makes rich indulgent ice cream flavors and novelty bars. This approach has worked in their favor for 57 years to date. They would be a tough competitor simply for their known reputation, but I feel our twist would get enough attention that we could easily enter the market beside them.
Ben & Jerry’s is another company I feel would be a strong competitor given that they have their unique flavors they include. It may be a bit difficult to enter the competition with alcohol-infused and flavored ice cream, considering they already have odd flavors of ice creams.
Breyer’s Ice Cream and Baskin Robins are well known in the community; however, they are more standard of flavors and ideas. I believe that our alcohol ice cream would be interesting enough to enter the market beside these two. The simple reason that Breyer’s specializes in classic flavors and Baskin Robins doesn’t have too many odd flavors is a good sign. Not to mention, neither of them are considered by most in the community to be higher end.
Citations to put in work Cited
https://www.lexisnexis.com/dossier/companyreporting/start.do?prod=CD&cdcomp=f2c1891b83689114a8d292591e304145:f2c1891b83689114a8d292591e304145:6_T638260926&host=Rosetta_US_Academic&LC=US&entityId=88062069&reportKey=snapshot_report&ticker=&countryName=USA&disclosure=&companyName=HAAGEN-DAZS+COMPANY%2C+INC.&companysCountry=Private+-+Parent&sicCode=2024&desc=Ice+cream+and+frozen+desserts
https://www.lexisnexis.com/dossier/companyreporting/start.do?prod=CD&cdcomp=b1bc63557b1fbd99af9f26d88aa73699:b1bc63557b1fbd99af9f26d88aa73699:6_T638260960&host=Rosetta_US_Academic&LC=US&entityId=62813072&reportKey=snapshot_report&ticker=&countryName=USA&disclosure=&companyName=DUNKIN+DONUTS+%26+BASKIN+ROBINS&companysCountry=Private&sicCode=5812&desc=Eating+places
https://www.lexisnexis.com/dossier/companyreporting/start.do?prod=CD&cdcomp=92c7e2c3f83b9cd2a8ddfbf59bc0f13d:92c7e2c3f83b9cd2a8ddfbf59bc0f13d:6_T638260972&host=Rosetta_US_Academic&LC=US&entityId=2290616&reportKey=snapshot_report&ticker=&countryName=USA&disclosure=&companyName=BEN & JERRY’S OF CALIFORNIA, INC&companysCountry=Private – Parent&sicCode=5812&desc=Eating places..
http://web.a.ebscohost.com/ehost/detail/detail?vid=25&sid=32a16620-0023-4774-8ce5-7a4bd2a1bb8a@sessionmgr4010&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=94322715
Works Cited
C. Barnes & Co. (2014). Barnes Report: Ice Cream and Frozen Dessert Industry