New ice-cream product project in UK market

1. Analysis of the Marketing Situation

1.1 ECONOMIC TRENDS

Population

The UK population rose by 0.3% from 2001 to 2002 and is predicted to rise by 10% to 65 million over the next 25 years, the majority of that increase due to immigration. These National Statistics projections are significantly higher than previous estimates and will obviously impact on the food industry.

Table 1UK Resident Population by Sex (000), Mid-Years 1998-2002

Source: Annual Abstract 2002 and Government Actuary's Department, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen's Printer for Scotland)

Household Disposable Income

Household disposable income was up by 3.9% from 1999 to 2000 and, according to National Statistics, reached £686.40bn in 2001.

Source: Annual Abstract of Statistics, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen's Printer for Scotland)

1.2 Ice Cream Market Analysis

The ice cream market has been experiencing sales growth roughly in line with that of the food market as a whole in recent years. Since 1999, the ice cream market has continued growing. The background of increased spending on food products in general has created favorable conditions to push average spending levels in this market. Suppliers and retailers have responded by developing more premium products, which has been positively received by consumers.

Source: Key Note

Source: As above

Above two tables show that nearly half of take home Ice cream sale in total and more than half take home Ice cream are multipacks style.

The take-home market allows consumers time for a more considered choice and, while brands continue to play an important role, an increasing proportion of sales are now being taken up by own-label products. Supermarkets have improved quality to such...