camborne ices new products and applied marketing mix

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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. Today John and Evans still manage the farm but is also responsible for ice cream production, employing six staff. Sue Evans is responsible for order processing and distribution (three staff), new product development (one member of staff), sales (two members of staff) and your new position.

Singapore Ice Cream Market

The market for Ice Cream in Singapore increased between 2001- 2006, growing at an average annual rate of 6.5%. The leading company in the market in 2006 was Fraser and Neave Ltd. The second-largest player was Unilever with Kings Creameries (S) Pte Ltd in third place.

The ice cream market in the Singapore consists of three main sectors: impulse, take-home and catering.

The Impulse Sector – This sector can be broken down into individual hand-held wrapped ice creams on sticks or in small tubs and cones, and scoops of soft ice cream dispensed into cones and tubs from cooling machines. All of these are sold from a range of retail outlets including kiosks, vans, newsagents and cafés in a wide range of tourist and visitor attractions, including theme parks and seaside locations. Demand for impulse sector ice creams is very seasonal, with most sales occurring in the warm summer months. This sector declined by 2% in real terms between 2000 and 2006.

The Take-home Sector – This sector covers multi-packs of the individual impulse ice creams and standard, premium and luxury ice cream sold in 500ml, one and two litre tubs. These ice creams are purchased to be stored in home freezers and consumed later as a dessert or treat. They are sold from retail outlets such as supermarkets and grocery convenience stores. Ice creams are sold in multi-packs at a fraction of the cost of individual items. Growth in the take-home sector is due to two factors. Firstly, the percentage of households with a freezer which can be used to store ice creams has risen from 85% in 2001 to 91% in 2006. Secondly, there has been an increase in price and volume based sales promotions offered by retailers, particularly supermarkets. This sector has grown by 4% in real terms between 2000 and 2006.

The Catering Sector – This sector is made up of restaurants, cafés, hotels, wine bars and pubs that purchase 2 and 4 litre tubs.

Camborne Ices Product Range

The current range of flavours includes Vanilla Bean, Mint Choc Chip, Strawberry & Cream, Serious Chocolate, Strawberry & Blackcurrant, Cappuccino, Chocolate & Raisin, Mango & Orange and Lemon & Lime.

New Product Development

The creation of a range of innovative, great tasting high quality organic ice creams has been central to the growth of the company. A new range of ice cream flavours called the ‘Spice Rack’ is now ready to be launched, initially for the take-home market. The range started life as a request from a local event organiser who asked for a chilli flavoured ice cream for their Mexican Evening, where the food and drinks would have a chilli theme. The result was ChilliRED, an ice cream that was cool on the tongue but with a chilli kick in the throat. So successful was ChilliRED that three other flavours, Root Ginger Twist, Cracked Black Pepper and Cassia Spice (a cinnamon taste from Sri Lanka) have been created.


As this is a company that sells direct to distributors and retailers, not the end consumer, but John and Evans planned to sells direct to consumer also. Your marketing budget is used mainly for below-the-line activities such as sales promotions, direct mail to the trade, exhibitions, publicity and public relations.


The most popular size for the take-home market is the 500ml tub. These are sold for VND60,800 to retailers, who will then usually add a 100% mark up to get a shelf or consumer price. Camborne Ices’ cost of production, distribution and staffing is VND27,000 leaving VND33,800 profit.


The quality and uniqueness of the product range has attracted the interest of local and national media, with articles appearing in a range of general, specialist and trade publications, such as national newspapers (e.g. New Paper), lifestyle magazines (e.g. House and Garden magazine) and trade publications (e.g. Fine Food Digest, Curry Life and Pub Chef). Further coverage has been gained as Camborne Ices has won awards, attended exhibitions such as the International Food and Drink Exhibition and featured in consumer television shows such as the Channel 5 Good Food Show and Taste of Singapore, where top hotel and restaurant chefs produce their greatest dishes.

The above data has been based on a fictitious situation drawing on a variety of events and do not reflect management practices of any particular organisation.


Evidence for the criteria        







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  1. Introduction    


A survey conducted by Euro Monitor Company market survey showed that the ice cream consumption in developed countries is about 20 liters per capita per year, in Thailand and Malaysia about 4 liters per capita per year (Source: Lanta Brand). Compare to Vietnam ice cream market where the ice cream consumption of Vietnamese people just 0.3 liters per capital per year.(source: Agriculture and Agri-Food Canada).

However, the Vietnam ice cream market ...

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