Company’s Description

• Chapman's Ice Cream started in 1973• Family owned business by a Canadian couple • Located in a village near Georgian Bay of Markdale, Ontario

Company’s Description Conti..

• In 2009 the factory completely destroyed by fire• In 2010, Chapman’s Ice Cream employed 450

workers and the new facility is 15,000 SM• The new plant cost $75 million• Production of nut-free products• High level of responsiveness

The New Plant 20102009 Fire

SWOT Analysis

Strengths– The largest independent ice cream company in Canada– Listed as one of Canada most trusted ice cream brands– Has strong brand recognition within Canada– Control 74% share of frozen yogurt market in Canada– Produce more than 150 flavors of frozen yogurt and sorbet

alone

Weaknesses– Ice cream is seasonal product

• Demand is very high in summer and low in winter

– Has no brand recognition overseas– Control only 7% of the Canadian ice cream market share

SWOT Analysis Conti..

Opportunities– Grow locally and internationally – Introduce a new line of products – Chance to capture market share from its competitors

• By introducing more healthy, more fun, and luxurious products

Threats– Ice cream market is very competitive market

• Competitors offer their products for lower price• Competitors have many augmented products

– Transportation costs might go higher in the future due to increase price of fuel

– Cost of packaging might go also higher in the future due to the increase costs of petroleum related products

PEST Analysis

Political and Legal – The United Arab Emirates is politically very stable– Member of the World Trade Organization– Encourage trades and has several trade agreements with many

countries– Health regulations and requirements are very strict in the UAE– All imported food products should be registered in the

registration and classification system which is part of the Food Import Re-Export System (FIRS)

– Labeling and nutritional information are taken very seriously by the government

PEST Analysis Conti..

Economic– The economy in UAE is very stable, and it is growing rapidly– Per income in UAE is around $48,000– Has strong transportation and infrastructure system – Has scored the highest in the HSBC’s Global Trade Confidence Index

(TCI)– Rely heavily on imported food products to meet its population

demand for food• Import approximately between 80% to 90% of its food needs

– The ice cream industry is growing rapidly in the UAE– There is high demand for premium ice cream throughout the year

PEST Analysis Conti..

Social– People of all ages in UAE enjoy eating frozen desserts

such as ice cream and frozen yogurt– People enjoy spending their time with friends and

families’ members in their homes, in cafes and restaurants

– There is also trend toward eating healthy food with fewer calories made of natural ingredients such as dairy ingredients

– The total adult literacy rate in the UAE is 90%

PEST Analysis Conti..

Technological – Ice cream production process is becoming more and more

efficient – New technologies allowed ice cream companies to produce

more different shapes of ice creams with unique designs– New technologies made it easier for ice cream companies to

transport their products to their different distribution channels– Advances in technologies allowed ice cream companies to

communicate better with their customers, suppliers, distributors and retailers

Competitor Analysis

• Market value of ice cream market in UAE for 2014 is estimated to be over $65 million

• Market grows at around 7% • Almost all major brands operate in UAE• Main competitors are International Foodstuffs

Co (IFFCO), United Kaipara, Haagen Dazs, Baskin Robbins, Nestle, Unilever

Market Value

IFFCO

• Market leader with 40% of the market• Lead in both impulse and take-home segments• Most popular brands are Igloo and London Dairy• Extensive and efficient distribution channel in UAE• Offer ice cream for all consumer segments, including the

health conscious, premium segment and also the price conscious consumer

• Export ice cream to other Middle East countries, UK and Africa

Take-Home Segment

Impulse Segment

Rest of the Market

• United Kaipara is second in market share with 15% of the total market

• Popular brands are Royal Treat and Unikai• Rest of the market is divided among major

brands like Nestle, Unilever, Baskin Robbins and several small local producers

• Artisanal brands account for 16% while small private brands have captured 6% of the market

Competitive Positioning for Ice Cream Companies in the UAE

Premium Price

Low Price

High Quality

Low Quality Fast Food

Restaurants

Generic

Industry dominated by Igloo (40%) & Royal

Treat (15%)

Nestle

London Dairy

Haagen Dazs

Chapman¶s

Marketing and Product Objective

• Maintain the growth rate because they have to maintain their category leadership– Provide customer with a quality product within a affordable

price. Their prime objective is to respond to customer needs and respond to the market quicker than the competitors

– Their objective is to keep working on product development wherein they can retain their current customer

• Consumption of ice-cream in UAE is growing and they also import ingredients of ice-cream from Canada

UAE Target Market Analysis

UAE Total Available Market

Served Available Market

Target Market

• Major cities in UAE

• Food market• Dairy market• Frozen dessert market• Family and kids• 15-35 years old consumers• Middle and premium social class people• Consumers who are looking for tasteful

pleasure and innovation to an offbeat brand image

• Diet conscious consumers for yogurt based ice creams

UAE Target Market Analysis Conti.. Geographic segmentations - Target Location/City, in UAE Climate and Weather Conditions

Demographic/socioeconomic segmentation - (gender, age, income, occupation, education, household size, and stage in the family life cycle)

Psychographic segmentation - (similar attitudes, values, and lifestyles) Behavioral segmentation - (occasions, degree of loyalty)

Strategies for reaching UAE target markets: Differentiated marketing strategy: Multi-segment includes diet conscious ice cream consumers; low calorie or fat-free consumers; yoghurt based ice-creams; flavor and taste based consumers.

Dubai Abu Dhabi Sharjah Al Ain Ajman0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

UAE’s top cities population in Million in 2012

Series1

Competitive Advantage

• USP is the unique flavors in holiday which are exclusive • Own manufacturing plant, water purification system and

trusted suppliers

Product Differentiation: No sugar added, lactose free, peanut free and so on. Examples: eggnog ice-cream, Santa's Milk and Cookies, Holiday Twist (premium mint and chocolate) and Peppermint Stick Differentiate their product by loyal and motivated employees Cognitive Dissonance: 100% satisfaction guarantee policy

The Marketing Mix: Product Strategy

• Sell the same variety of frozen desserts products in the UAE

• Make products available in gluten free, nut free, no sugar added and frozen yogurt varieties to its potential UAE customers

• Offer products in different sizes, shapes and designs to capture kids’ attention and imagination

• Offer the same 100% satisfaction guarantee policy to its potential UAE customers

Product Strategy Conti..

Packaging– To ensure the highest quality of all products, the company

packages its products very carefully– Use different packaging styles such as micro-flute

corrugated cartons, cone sleeves, disposable paper cups and ice cream plastic and carton containers

Labeling and Branding – Use the same persuasive labeling strategy to attract

customers in the UAE– Brand and label all products with “Premium Canadian

Collection” and “100% Canadian Dairy” phrases – Provide all nutritional and ingredient facts on both its

cardboard boxes and individual packaging

Price Strategy

• Cost of Production are high (Chapman's uses premium ingredients):

- Cost of milk - Cost of labor

• Cost of Shipping is high- The need for refrigerated shipping

• Competitive Pricing: - Over Nestle and below the highest end ice cream- The positioning of the product needsto be high end in UAE (premium position)

Price Strategy Cont..

Target market and the customers' willingness to pay:

– Consists of established foreign workers and Local Emiratis, who have both the ability to pay and exposure to Western foods through travel.

These factors support that Chapman's in the UAE can be at premium level

A small tub can cost 26-30 AED ($8-$9 CAD), or more

Promotion Strategy

• Pull strategy: more appearance in media

• Corporate image strategy– Tangible elements: goods & services, retail outlet,

communication tool, corporate name and logo, package and labels and employees

– Intangible elements: corporate policies, culture of country and location of the company and media report

IMC Objective

• Create brand awareness and brand acceptability through – Samples, coupons, bonus packs, price-offs,

sponsorship program and media channels such as TVC, Bill-boards, newspapers and so on

Place (Distribution) Strategy Chapman’s initially plans to distribute its product through wholesaler, distributor

and retailer set-up. Once the products are successful in the market, Chapman’s will try to eliminate as many intermediaries in the chain of distributing the products to supermarkets, hypermarkets convenience stores and specialist retailers.

Place (Distribution) Strategy Conti..

Intensive Distribution Strategy: Chapman’s products will be stocked in the majority of outlet like supermarkets, hypermarkets, convenience stores and specialist retailers to make sure the availability of product to consumers. This strategy is common for basic supplies, snack foods, magazines and soft drink beverages.

70%

13%

10%7%

UAE Ice cream/Frozen Yogurt Distribution Network split %

Supermarkets/hypermarkets Convenience Stores Specialist Retailers Independent retailers and service stations

Thank You

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