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camborne ices new products and applied marketing mix

Extracts from this document...

Introduction

Scenario - Camborne Ices Ice cream showing no signs of cooling down A survey conducted by a Singaporean market survey company in 2004 showed that the total turnover of the ice cream market in Vietnam was VND667bil and the market had the growth rate of 15-20% per annum. This proves to be an attractive figure for investors, though the ice cream consumption level of Vietnamese people is still low compared to the world's consumption level, just 0.3litres per capita per year (Source: Agriculture and Agri-Food Canada). Experts said that Vietnam's ice cream market will see further strong growth for many reasons. First, Vietnam's economy is growing fast with the GDP growth rate of 7.45% in the 2001-2005 period. Second, fast population growth is also considered a reason behind the increased demand for ice cream. Experts have predicted that Vietnam's economic growth rate will be 7.5-8.5% per annum in the 2006-2010 period, while its population growth will be 1.2% per annum. Meanwhile, the production of milk and ice cream-made products are being encouraged by the State. The approved strategy on dairy industry development by 2010 and 2020 said that dairy production will increase by 5-6% per annum during 2006-2010, while ice cream production will increase by 10% per annum. The Challenge You have been employed in the newly created role of Marketing Manager (Vietnam) working for Camborne Ices, who produce and sell a wide variety of premium quality organic ice creams throughout Singapore. Now that the company was well established, they wanted to explore and expand into the ice cream market in Vietnam. Camborne Ices History The company was established by John and Sue Evans in 1988 on their dairy farm, to use the surplus supply of milk produced by their cows. From the start there has been a commitment to producing great tasting, high quality ice cream without the use of preservatives, flavourings or colourings. ...read more.

Middle

If the price is too high, there will lead to no possible demand to buy products. The price should be somewhere between too low price and too high price. In Singapore, the price of 500ml tub is about VND 60,800 for retailers. At this price, Camborne get VND 33,800 profit and the rest is cost VND 27,000.At this price, company have profit and retailer usually add 100% mark up to consumer price. However, how the price will be accepted by buyers in Vietnam and how much profits company should have is big problem for Camborne ices when they enter to Vietnam. In order to set the price at Vietnam market, they should follow 5 steps of process setting the price: Camborne should identify which is an objective of Pricing. It can be maximizing the sales volume, maximizing the profit or stable market. Camborne is new brand in Vietnam and the best way to attract customers is quality leadership objective. Camborne ices supply high quality products but at low price even they get less profit. In other words, company bases on good-value strategies: PRICE Higher Lower Higher Premium Good-value Strategy Strategy Lower Overcharging Economy Strategy strategy After find out the price's objective, Company can estimate the demand for ice creams. In general, the demand for ice creams in the South is higher than in the North's demand because seasonal factors. In the south, the temperature always high, as opposite to the North where the hot weather in 3-4 months a year. It will affect to sales volume of ice creams. The cost of Camborne Ice cream includes variable cost and fixed cost. Variable cost is the cost of direct material, direct labour, Variable overhead. Fixed cost includes interest, indirect cost. Next, Camborne ices should consider competitors' pricing and analyse the ice cream market in Vietnam. There are 4 biggest ice cream company Vinamilk, Kido, Thuy Ta and Monte Rosa in ice cream market. ...read more.

Conclusion

The different in culture lead to the different demand. Singapore is a developed county in Asia whereas Vietnam is developing country. Singaporean willing to pay high price to purchase an ice cream because average income is high. If company wants their products to Vietnam at the same price in Singapore, the demand for products will fall down rapidly. Camborne's objective is export their product to international, however company should do a research about customer' behavior and customers' demands because the domestic is different from international market. III. Conclusion: Marketing mix is the set of the marketing tools that the firm uses to pursue its marketing objectives in the target market. After analyzing individual elements of extended marketing mix , Camborne Ice cream achieves marketing objectives, meets the consumer needs and creates a competitive advantages. Moreover, by applying extended marketing mix to different marketing segments, Company knows the different in marketing products to organizations rather than consumers. In addition, John and Evens was know how and why international marketing differs from domestic marketing. In order to have a successful business in Vietnam they were recommended that do a research to find out the customers' needs. REFERENCE Perreault, D.W and Mc Cathy, J ( 2002) Basic Marketing A global- management approach, 14th ed, New York: Mc Graw-Hill. Kotler, P. and Armstrong, G. (1996) Marketing an introduction, 4th ed., New Jersey: Prentice Hall Leader, W.G. and Kyritsis, N.( 1990) Fundamentals of marketing, 3rd ed,. London, Nelson Thornes. Rowley, J.E (2006) Information marketing, 2nd ed. Aldershot, Hands, England: Ashgate Publishing Ltd. Song Linh (2005) Average income about USD 715, Vnexpress [online] Available: 14 Nov 2006, 07:06 GMT+7 [cited 6 Jan 2009] <http://www.vnexpress.net/Vietnam/Kinh-doanh/2006/11/3B9F053D/> Ngoc Chau (2008) Vietnamese' average income about USD 1000, Vnexpress[online] Available: 27 Nov 2008 14:33 GMT+7 [cited 3 Jan 2009] <http://www.vnexpress.net/GL/Kinh-doanh/2008/11/3BA08C67/> Convenience store 24 [online] Available 20 Aug 2008[cited 3 Jan 2009] < http://speedy.vn/index.php?target=categories&category_id=329> Vinamilk Dairy company [online] available 2008 [cited 5 Jan 2009] <http://vinamilk.marofin.com/details/10048/Kem_Vinamilk.html> Thuy Ta website [ cited 5 Jan 2009] <http://www.thuyta.com.vn/Web> Monte Rosa web site [cited 6Jan 2009] <http://www.vnnavi.com/restaurants/monterosadn/> 1 http://www.vnexpress.net/Vietnam/Kinh-doanh/2006/11/3B9F053D/ http://www.vnexpress.net/GL/Kinh-doanh/2008/11/3BA08C67/ 2 http://www.sggp.org.vn/thitruong/nam2005/thang10/71047/ ?? ?? ?? ?? 1 ...read more.

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