As international marketing consultant of Mackie's of Scotland, the ice cream maker, it is my duty to consider the possibilities of expanding the business

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        As international marketing consultant of Mackie’s of Scotland, the ice cream maker, it is my duty to consider the possibilities of expanding the business into new overseas markets, successfully. The Scottish ice cream market will be researched thoroughly. The UK target market of Mackie’s will be analysed. Finally a suitable country will be chosen to market the product to. The countries that will be selected from will be Saudi Arabia, Germany or Ireland.

        The UK ice cream market is estimated to be worth £1.25 billion. Mackie’s of Scotland have been making ice cream in Aberdeenshire since the 1960’s, although they have been farming since before the turn of the century. Ice cream has been in existence since 618A.D but is rumoured to have been invented in 200B.C in China. The first documentation of ice cream in Britain is dated in 1672 during the reign of Charles II. The uniqueness of Mackie’s ice cream is that firstly it is made in Scotland, it is made with the help of Jersey and Angus cows, it is run by a Scottish family/workforce, Mackie’s is the market leader in Scotland with 45% of the market and has an 11% UK wide market. Mackie’s aim is to strengthen its UK market position and then look into potential export opportunities. These factors mean that the company and product are idea and ripe for expansion into foreign markets.

        Mackie’s trademark symbol is a milkmaid milking a cow in a field. The traditional flavour of the ice cream is represented by blue packaging. It is not called vanilla but simply traditional. No flavours are added to Mackie’s Traditional. Other flavours in the range include Honeycomb Harvest, Strawberry and Cream, Caramel Choc Mint, Absolutely Chocolate as well as Organic Ice Cream. Traditional is available in 120ml tubs, 500ml, 1 litre, 2 litre, 5 litre and 10 litre tubs. Honeycomb Harvest, which has orange, blue and white packaging, is available in all sizes except 2 and 10 litre tubs. Strawberry and Cream, which has red, blue and white packaging, is available in all sizes except 500ml, 2 and 10 litre tubs. Caramel Choc Mint, which has green, blue and white packaging, is available in 1 and 5 litre tubs. Absolutely Chocolate, which has brown, blue and white packaging, is available in all sizes except 500ml, 2 and 10 litre tubs. Organic ice cream is available in 1, 2 and 5 litre tubs and is coloured green, orange and blue in packaging. Organic Strawberry is available in only 500ml tubs and is packaged with red orange and black colours. Organic ice cream costs roughly £2.99 for a 1 litre tub. Other flavours are cheaper at about £2.40 for a litre tub.

        Mackie’s would want to expand internationally for a number of reasons. The UK market is relatively congested with a number of different companies competing for the highest share of the market. Wall’s ice cream is the branded leader in every segment in the market. They have been producing ice cream for 38 years longer than Mackie’s, and therefore have been able to firmly establish themselves as the UK’s favourite ice cream company, as well as in other developed and developing countries. Wall’s has a share of 31% of the UK ice cream market. Hagen Dazs controls 19% of the market. Ben and Jerry’s have 15% of the market. Mackie’s, as previously mentioned controls a respectable 11% of the market. Mars Ice Cream has 7% of the market. Tonitto has 4% of the market and other ice cream manufacturers make up 13 % of the market.  Mackie’s have to look to foreign markets that have not been as clinically tapped as the UK. Countries where the ice cream market has not been fully realised, are the same countries that budding ice cream companies like Mackie’s can expose, exploit and profiteer in. Reasons to expand into foreign markets would include the rapid boom in technology which means that communication over long distances is no longer a major problem. Transportation of goods can be done much cheaper and quicker than before. A growth in the market place for the company’s product could lead a company overseas. The rise of the amount of middle class people and families could lead to better sales and expansion. The raising awareness of the product domestically means that it will be becoming better know by foreigners. Strong economic growth in countries could lead to opportunities for foreign businesses. Smaller household sizes means that more money is spendable income, this trend is in more developed countries. More working women again means a lot of their money is not taken up by their offspring or husbands, and can be spent on themselves. This trend is again in more developed countries. People being more health and environmentally conscience means there are more opportunities for healthy and/or organic products across the world. Some governments offer export subsidies which are payments from the government to a company to put their product on the global market place, these are used to decrease competition domestically.    

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        Mackie’s target market is the luxury end of the ice cream market. Buyers of Mackie’s would typically be adults between the ages of 21-50. Adults would buy the product partly because of their own taste and partly for the rest of their family or friends to enjoy, as it would be a change from the norm of Wall’s Cream of Cornish to Mackie’s Cream of Scottish.

     The strengths of Mackie’s ice cream are that from the year 1994 Mackie’s concentrated their efforts almost solely on the manufacture of ice cream products, making them specialists in the field. ...

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