Whey protein ice cream origin in UK and its popularity is reflected by the significant growth in sales. It is an innovative product that it differentiates itself from others with the feature of high nutrition value. With its success in I-J, the product is believed to have a great potential to enter Germany ice cream market. The report draws attention to analyses Germany’s attractiveness, the actuality of ice cream industry, the brand positioning and the strategies to penetrate German market. With profiling on industry and company capacities, it reveals the product is eatable for different groups.
The protein ice cream is aiming to sequentially penetrate the niche-markets, mass population with health issues and mass population for regular consumption. Further research reveals the limitation of the report is the estimation of budget due to the lack of proper evidence and data to support the figure. The report concludes that it would be ideal for Whey to enter partnership with local fitness centre to maximize the brand awareness, minimizing the cost of entering new market and the cost of establishing distribution channels.
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It is recommended Whey to notational adjust its’ strategies base on the industry environment and market competition. 1. 0 Country Analysis Based on the Hypotheses Cultural Index (See Appendix A), the similarities between British and German Culture lead to think of the potential of a product based on the success on its home country and its possible future market. This assumption is based on the fact that both countries share similar cultural values, therefore the attitude’s and perception towards a brand and its products shouldn’t vary that much. . 2 PEST Analysts I. Political “Germany and the United Kingdom have close and wide-ranging relations based n mutual trust. Both countries play an active role in the European Union, NATO, the United Nations, the 68, the 620 and other international bodies” (Anonymous, Bibb). The political situation between Germany and United Kingdom seems to be stable, helping to develop a good business relationship for Whey Hey brand. In 2013, Britain was named, Germany’s biggest trade partner (Evans-Pritchard, 2013). I’.
Economic Both countries belong to the European Union, this politic-economic union aims to ensure the free movement of people, goods, services and capital (Anonymous, AAA). While United Kingdom is ranked in the third largest economy in Europe, Germany such as GAP, Taxes, Poverty Index, Inflation rates and unemployment’s rates. On the other hand there are certain economical areas that vary between the two nations, such as Exports, Imports and External debt. Germany has higher amounts of Imports and Exports, while the Public debt is higher in United Kingdom.
The population in both countries are similar, the difference of 23 million est.. Is directly related with the area of each country. (See Appendix B) iii. Social Social factors of both countries includes health consciousness, population growth ate, age distribution and cultural aspects. Health consciousness is a key factor for Whey Hey product due its nature. Germany is located in the 12th place on the top 30 markets with rising health concerns, being the second European country to appear on the ranking, Just after United Kingdom in the 9th place (Euromonitorlnternational, 2012).
Age structure is very similar between Germany and United Kingdom, hence the behavior of the selected demographic segmentation will be similar to its home country. (See Appendix B). Based on Hypotheses cultural index is appreciated that the similarities between British and German culture is high. V. Technological Technological infrastructure in Germany is considered as developed. Since Internet will be considered as a key tool for must businesses nowadays, considering the fact that from a population of 80,996,685 million people, 65. 125 million have access to Internet and are considered as active users. See Appendix B) 2. 0 Industry Analysis 2. 1 Porter’s Five Forces Analysis The attractiveness of the Ice Cream Industry will be evaluated with Porter’s five forces analysis (Estate and Helsel, 2010). I. Threat of new entrants According to a recent market research of Canadian firm, Germany earned the title f “most lucrative market for Ice Cream in Europe in 2013”. Germany produced 627 million litters of ice cream (Brady, 2014), representing $2. 7 billion dollars In 2013. By being the most lucrative market for the selected industry, it may attract new competitors due to its industry profitability. See Appendix C) Customer loyalty to established brands may represent an issue for new competitors as Whey Hey Ice Cream, nevertheless and according to according to Catherine O’Connor, senior analyst at Canadian: “For an ice cream product to succeed in Germany, it needs to offer an indulgent experience above all else. While German consumers are also seeking convenience and quality products, as well as ice creams that bring fun and relaxation, these needs shrink in comparison to the high desire for indulgence that drives the market” (Canadian, 2014).
In order to overcome customer loyalty, brands may use product differentiation. Whey Hey Ice Cream is an unique, innovative and healthy Ice Cream, which can be considered as an indulgence without guilt of consumption, being one of its main characteristics the sugar free base. As long as product differentiation is properly displayed, it can be used to counteract the customer loyalty with certain brands. I’. Threat of substitute products Substitute products may vary on different brands of Ice Creams and also different presentations of dietary supplements.
The buyer propensity to substitute products may be motivated by the price of substitute products and the vast number of distinguished from its competitors, based on product differentiation. While consumers may have several options of Ice Creams or dietary supplements, Whey Hey Ice Cream is the only option available in the market that offers both products in a ex. promotion, I. E. Avian the Ice Cream and Supplements in Just one product. Iii. Bargaining Power of Buyer’s The availability of existing substitute products may represent an issue for Whey Hey, considering the vast number of possible substitutes.
The power that buyer may hold, could be considered as high because of the easiness of switching products. The main at the beginning Whey Hey brand may struggle with this power, considering that it will be a new brand with low brand equity. The product will use its differential advantage and marketing strategies to position the brand as unique and as the only option for a healthy and sugar-free Ice Cream. Considering the “Place and Promotion Strategy’ designed for the brand, a loyalty program may be enforced in the 5 year business plan in order to reduce buyer power (further details are described in the Marketing mix). V. Bargaining Power of Suppliers Suppliers bargaining power may represent an issue for the brand, considering that the brand it’s entering a new market with limited knowledge of suppliers. Since Germany is now considered as the most valuable market for Ice Cream in Europe, the cost of production with national suppliers rather than production in the home entry, may be an issue if suppliers refuse to work with the firm due to capacity problems or even charging excessively high prices for their resources.
Distributional channel and supplier competition may also be determinant factors for the brand. Several options of suppliers need to be considered in order to avoid dependence or high bargaining power of suppliers. This is a key issue to be addressed, since the pricing strategy and profit margin for upcoming years depend on German production, rather than production in United Kingdom. Sustainable competitive advantage may be held by the innovation on Whey Hey reduces. Competitors are already identified and analyses in a way that their weaknesses can become the strengths of Whey Hey.
The brand has already on its way the development of new products, meaning that innovation does not stop only with established Ice Creams but also with new products such as the recently launched “world’s first, high protein Frozen Yoghurt Push-Up” (Anonymous, chic). The entire competitive strategy and advertising of the brand will be targeted on the competitive advantage of its products. 2. 2 Competitive Analysis “Milliner Deutsche Gumbo was the leading player of Ice Cream in Germany in 13th its variety of brands.
Other players with noteworthy share were Nestle SuchГ??leer Gumbo, General Mills Gumbo, Frosts Dauntlessness Gumbo & Co KEG, Mars Gumbo and Kinsman Thief;Hal-Hemispheric Gumbo” (Euromonitorlnternational, 2014). The closest Ice Cream competitor is Lupines, a plant-based ice cream owned by Prolusion Gumbo, it is made from the seeds of the blue sweet lupine which is very rich in protein. The product is completely free of lactose, gluten, cholesterol, and animal protein and fat. Nevertheless, the amount of fat of Lupines is the same as regular Ice Cream (Quick, 2011).
There are four flavors: vanilla-cherry, strawberry-mousse, walnut dream and choc-flakes which are available at Decked, the Germany’s largest market. Additionally, Protein supplement products, such as Whey protein and BBS- Syntax, are considered as direct competitors since they offer the same benefit as Whey to consumer. There are only two forms of protein products such as powder and bar, so Whey has introduced the new era of protein consumption in the form of ice cream. 3. 0 Company Analysis 3. Whey Analysis Whey Hey it’s a UK brand, identified as the world’s first and leading protein ice ream. All the products are made using Whey Protein Isolate, considered as the finest most high quality protein in the market. This Ice Cream is all natural, high protein, without sugar, low in fat and crabs and gluten free. (Whey, Bibb) Whey Ice Cream nutritional data: Contain Whey Protein Isolate, which contains all 9 essential and 11 non-essential amino acids that the human body needs.
Whey Protein Isolate is the highest quality source of protein and is considered by many scientist as one of the gold standards of proteins for the human body. Naturally gluten-free with minimal amounts of lactose, reverberates and fat (Whey, AAA). The brand is small-medium organization that distributes their product in United Kingdom (home market) and Ireland. Product can be purchased in several retail stores, specialized stores and gyms across I-J.
About marketing strategies, the brand has been positioned due to: partnerships with some great names on fitness like Nikkei and Virgin, major endorsements: UK model David Candy and Boy band member, Harry Styles from One Direction, a strong presence on social media, and different social/sport events such as London Fashion Week, V Festival, Spartan Race, Just to name a few (Chowder, 2014). . 2 SOOT Analysts SOOT analysis of Whey will be explained thought matching the opportunities and strengths in order to overcome weaknesses and threats in the Industry. See Appendix D to refer SOOT Analysis) Strength + opportunities: Whey can expand the product offerings by different sizes for individual, household and other size of customers. The business can combine with its first mover advantage and operates concept stores or franchise business model similar to frozen yoghurt. The product has a large potential market that it can enter partnership with airlines, hospitals, nursing homes, fitness centers ND different clubs to increase the availability.
Weakness + opportunities: Whey can establish a feedback spot for product and service improvement, gaining testimonials to overcome the distrust on product’s health value. The product can continually lead the market by localizing products that will attain the overall product offerings’ competitive advantage. Strength & Opportunities: Whey has the potential to form strategic alliances with health food companies for R&D on other health benefits such as essential Vitamins and minerals in ice cream.
The innovative product can reverse the rotational perception of ice cream and become a market leader. Weakness & Opportunities: Product’s health value will diminish the factors that attention, not only increase the evaluation of alternatives in buying process but also enhance the brand awareness. Market 4. 1 Segmentation Segmentation GIG: Mass population 4. 0 Key Issues Entering 62: Health problems (obesity and diabetes) 63: Niche market (Athlete, sporty and health conscious groups) Geographic – Germany – Berlin, city size 891. Km – Capital city – Urban Demographic – Age: 18 or more – Family size: 1 person or more – Gender: Male and female Education: grade school or higher – Multi-generation – Social class: upper lower, working class or higher – Lifestyle: youths, elderly, household, adults – Age: 20 or more – Age: 18-55 – Education: some high school or higher class or higher Cryptographic – Young, mature – Active people – Enthusiastic, impulsive – Trendy, fun loving – Elderly, passive people who might change their preference base on the value of products – Self-interest oriented – Self-sufficient – Fun loving – Impulsive – Passionate to seek for variety and excitement – Sport and outdoor oriented – Successful – Goal oriented Seek for functionality and value in product Sophisticated – Niche-oriented products Behavioral – Usage rate: light to medium – Behavioral occasion: Impulsive buying, special occasion – Usage rate: light to medium – Usage rate: medium to heavy Behavioral occasion. – Impulsive buying, special occasion, regular occasion, frequent buying 4. 2 Major Target market Whey is targeting sporty, athletes and health-conscious groups in Berlin for the first and second year.
The target groups are interested in benefit-based product and Whey protein ice cream presents a significant health value to them. Whey can provide the amount of protein for sport and outdoor-oriented people to retain body shape and performances. The ice cream labels as no sugar and natural that it allows the health conscious people to enjoy as a treat. The functionality of the product will assist Whey to penetrate the niche markets and obtain brand 4. 3 Potential customers Whey protein ice cream is conducive to overall health for containing protein, no sugar, low carbohydrates and fat. The value of the product is beyond the enhancement of athletic performances that it is also ideal for weight management ND diabetic friendly.
The public is attaching importance to personal health and the functionality and value of the product can be vulnerable to mass population, especially obesity and diabetes. Apart from the nutrition, product usage is convenient and easy to dispose after consumption. On account of potential market is enormous, Whey will sequentially target on population with obesity and diabetes follow by the rest of mass population once the major target market has been penetrated. 4. 4 Positioning Whiskeys value proposition is natural and tasty ice cream with significant health infinite. The company has developed an effective brand mantra “the ice cream that loves you back” that it captures the core brand promise, clearly defined the category of the business and easy to remember by customers.
The competitive brand position for Whey is innovative product, nutritious and tenderness on service. The product is distinctive and superior to relevant competitors by differentiating itself on ingredients and health value. The company conveys the brand commitment and maintains the brand association with customers by Joining diverse events and giving out samples. Through the direct communication in events and E-marketing, customers are given the compelling reason to believe the brand can deliver the desired benefits and grow brand awareness. 4. 5 Differentiation strategies The unique product offering merge with employee differentiation and image differentiation will maximize the competitive advantage of Whey and build a strong brand.
The sales forces of Whey are highly identical to its’ initial target markets. The image of sales forces is healthy, good body shape, kind and sport- oriented that it crafts powerful and compelling image to customers and appeal to customers’ social and psychological needs. 5. 0 Marketing Objectives and Communication Objectives I. To achieve a 15% return on capital by the second year it. To establish 5%-10% market share in Berlin in two years’ time iii. To attain constant growth of 10% revenue after second year operation iv. To achieve a 30% brand awareness among the target audiences within the first year operation in Berlin. V. Expand the business to Munich, Hamburg and Frankfurt in 3 years’ time 6. 0 Marketing Mix 6. Product The uniqueness of protein enrichment has differentiate Whey ice-cream from there competitors who offer healthy food for athlete and sport people. Protein is the key recipe which is easily absorbed by human body in order to effectively repair and grow muscles after exercise. Furthermore, all ingredients are 100 percent natural flavored with no added sugar that allow consumers to enjoy the taste without fat There are two product lines of company’s product portfolio. Firstly, the enriched- protein ice cream contained in 150 and mill tub with three flavors: vanilla, strawberry and chocolate. Plastic spoon is provided under the lid. The taste of each flavor includes 22. And gag of Whey protein isolate for 150 and mill tub consecutively with low fat and carbohydrates.
Another protein ice cream is in the form of handheld frozen yoghurt or call “Whey Push-up” that consists of three flavors: natural, blueberry and coconut. Expanding business to Germany market, we have introduced market development in which selling the existing products to new market. Moreover, our “focus differentiation” strategy illustrates the unique benefit of protein-enriched ice cream to those who do exercise regularly and need protein supplement such as athlete and sport people. The core product lines will be standardized which means all flavors, size and packaging of the 150, mill tub and frozen yoghurt will remain unchanged in this market.
However, products’ label, such as instruction and ingredient, needs to be adapted by translating in German language to communicate with buyers since it is the official language of this country. 6. 2 Pricing Dessert and sport people are not an appropriate matching that almost all desserts, particularly ice cream, come with sweetness which causes fat and overweight problem. Although Lupines and other low fat ice cream available in Germany market, but those do not give the specific value and benefit to customers. Meanwhile, Whey has added value to its ice cream product to ensure health benefit specifically from Whey protein isolation, the best quality protein brand, as the main ingredient.