Companys 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

Companys Description Conti..
In 2009 the factory completely destroyed by fire
In 2010, Chapmans 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 2010 2009 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 HSBCs 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
Chapmans

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.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Dubai Abu Dhabi Sharjah Al Ain Ajman
UAEs 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 needs
to 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


Chapmans initially plans to distribute its product through wholesaler, distributor
and retailer set-up. Once the products are successful in the market, Chapmans 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: Chapmans 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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