Kawartha Dairy Marketing Portfolio: Health-Focused Ice Cream Strategy

1 Marketing Portfolio Assignment Part 2 Kawartha Dairy 23F --Marketing (SEC. 001) Iain Chalmers November 27, 2023 Marketing Portfolio Assignment Part 1 Kawartha Dairy

2 Target Market The Primary for our new ice cream includes individuals who have specific dietary preferences or restrictions since our new product will focus more on healthier and sugar-free ice cream. The following are our potential markets for the new launch product:  Health-Conscious Consumers: Individuals actively manage their sugar intake for health reasons, including those with diabetes or on low-sugar diets.  Vegans and Plant-Based Dieters: Vegans and individuals following plant-based diets seek dairy-free alternatives.  Weight Watchers and Fitness Enthusiasts: Individuals on weight management programs or fitness journeys seeking lower-calorie options. Families are a demographic that significantly influences ice cream’s purchasing patterns. According to insights, a substantial 84% of these customers exhibit a preference for acquiring ice cream during the evening hours. Notably, their favored destination for this delightful treat is the grocery store, where they can select from a diverse range of options. The majority of these consumers opt to enjoy their ice cream in the comfort of their homes, creating a trend where the grocery store becomes a key player in fulfilling their ice cream preferences. This behavioral

3 understanding forms a pivotal foundation for tailoring marketing strategies and product offerings to align with the preferences of our primary market. The customer’s needs and wants, and a description based on variables such as demographics, psychographics, lifestyle. Customer Profile: Ice Cream Enthusiasts Demographics:  Age: Broad appeal across age groups; from children to adults.  Gender: No specific gender dominance; enjoyed by all.  Location: Urban centers and suburban areas with a strong focus on wellness and healthy lifestyles. Cities like Vancouver, Toronto, and Calgary are known for their health- conscious communities.  Income: Varied income groups; ice cream is accessible to a wide economic spectrum.  Occupation: No specific occupational bias; enjoyed by individuals from various professional backgrounds. Psychographics:  Lifestyle: Health-conscious consumers, Vegans and Plant-Based Dieters, Weight Watchers, and Fitness Enthusiasts customers  Values: Appreciation for indulgence, convenience, and sensory enjoyment.  Personality Traits : Playful, pleasure-seeking, and open to diverse taste experiences. Preferences and Needs:  Cone Preferences: Waffle cones are the preferred choice for a significant portion (32%), showcasing a preference for a textured and flavorful experience.

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4  Serving Style: Despite cone popularity, a notable 37% prefer the simplicity of enjoying ice cream out of a bowl, reflecting diverse consumption habits.  Fruit Inclusions: Strawberries are the favored fruit accompaniment, preferred by 48% of consumers, followed closely by bananas at 36%. Shopping Behavior:  Sales Channels: Beyond supermarkets and hypermarkets, convenience stores play a significant role in ice cream sales, emphasizing the importance of accessibility and impulse purchases.  Local Trends: Widespread throughout Canada especially Ontario, British Columbia, and Alberta. Positioning Map Develop a market Positioning Map using 2 dimensions that you think are important to your target market and clearly differentiate your brand vs at least 4 other competitors. Remember to name your Axis labels. Create a Positioning Statement and Tagline for your product. High Quality High Price

5 Positioning Statement To families and individuals seeking happiness and diverse frozen delights, Kawartha Ice Cream is a premium dessert experience that combines rich flavors, innovative textures, and quality ingredients. Tagline: Joy Within a Cup. Low Price Low Quality

6 Product Lifecycle P o d uc t D e v e l o p m e n t In t r o d u c t io n G r o w t h Ma t u r i t y D e c lin e -4 -2 0 2 4 6 8 10 Kawartha Ice Cream´s life cycle Sales Profits time sales & profits What Stage is your brand in? Kawartha Ice Cream is in the stage of growing. Rationalize in three points why you believe it is in this stage. Market Expansion: Kawartha Ice Cream is actively expanding its market presence by reaching new regions or introducing new flavors and product lines, which suggests that the company is in a growing stage. The company is investing in marketing strategies, distribution channels, and product innovation to capture a larger share of the market (Amstrong et al., 2019, pp. 273-277). Increasing Sales and Revenue: A growing stage is often characterized by a significant increase in sales and revenue. By the time, Kawartha Ice Cream is experiencing a notable uptick in both,

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7 it could indicate growing consumer demand and a successful market penetration strategy (Amstrong et al., 2019, pp. 273-277). Brand Recognition and Loyalty : In the growing stage brands typically see an improvement in brand recognition and customer loyalty. Right now, Kawartha Ice Cream is building a strong and positive brand image, attracting repeat customers, and establishing a loyal consumer base, which suggests that the brand is in a growth phase (Amstrong et al., 2019, pp. 273-277). Marketing Strategies In the growth stage, as outlined by Kotler et al. (2015, p. 280), we should focus on the following strategies: Strategies Growth Product As we move into the growth phase, our brand is committed to delivering not only premium products, but also exceptional customer service. In addition, we aim to expand our offerings through strategic brand extensions, ensuring a comprehensive experience for our valued customers. Price We require a market-penetrating price that not only enters the market effectively, but also competes robustly with other offerings. Place We need to build a strong and intensive

8 distribution Promotion we aim to create robust mass advertising that not only reaches a wide audience, but also leaves a lasting impact Pricing Strategy Product Price Kawartha $ 5.39 Ample Hills $9.08 Haagen-Dazs $5.32 Ben & Jerry's $7.49

9 Our pricing strategy for Kawartha, currently in the Growth Stage of its lifecycle, is strategically positioned. Among our competitors, we are the second lowest priced brand, with only Haagen-Dazs offering a slightly lower price by a mere 5 cents. However, considering our lifecycle stage, I recommend a 10% reduction in our price, setting it at $4.85. This adjustment will position us as the most competitively priced option in the market. By coupling this affordable price with our exceptional product quality, we anticipate a significant boost in sales. The recommended approach aligns with a Penetration Pricing Strategy. Penetration Pricing aims to quickly gain market share by setting a low initial price. It’s particularly effective during the growth phase, attracting price-conscious consumers and encouraging trial purchases. As we expand our customer base, we can gradually adjust prices upward while maintaining our competitive position. Product Strategy The recommendation is to introduce a new, healthier ice cream option that is both sugar- free and lactose-free. This innovation is suggested in response to the diverse market identified, which includes individuals of all ages, genders, and economic backgrounds. The reasons behind this recommendation are as follows: Market Gap: The analysis indicates that there is currently no similar product offered by competitors. Introducing a sugar-free and lactose-free ice cream would help fill this gap in the market, providing a unique selling proposition.

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10 Target Market Considerations: The target market is broad, encompassing individuals from children to adults with varied incomes and professional backgrounds. A healthier ice cream option aligns with the diverse lifestyles and values of this market, catering to those who may have health conditions that restrict their consumption of traditional ice cream. Global Accessibility: The product is intended to be enjoyed globally, and by creating an ice cream that is healthier and caters to dietary restrictions, it can attract a wider audience. This aligns with the appreciation for indulgence, convenience, and sensory enjoyment identified in the market analysis. Health-Conscious Trend: With a growing trend towards health-conscious choices, offering a sugar-free and lactose-free ice cream option positions the brand as responsive to consumer preferences and health concerns. In summary, the recommendation is to introduce a new, innovative ice cream product that meets the demands of a diverse and health-conscious market, addressing specific dietary needs such as sugar and lactose restrictions. This move has the potential to not only differentiate the brand in the market but also to tap into a segment that is currently underserved by competitors. Rationalize in three points why this would make them more competitive in the market Market Differentiation : By offering a unique product that fills a gap in the market, the brand can stand out from competitors. The absence of similar offerings from other ice cream brands positions this new product as distinctive and appealing to health-conscious consumers. This

11 differentiation can lead to increased brand visibility and customer interest. (Kotler et al., 2015, p.53) Broad Audience Appeal : The sugar-free and lactose-free ice cream caters to a wide range of consumers, including those with dietary restrictions, health concerns, and diverse lifestyles. This inclusivity allows the brand to tap into a larger customer base, spanning various age groups, genders, and economic backgrounds. As a result, the brand gains a competitive edge by appealing to a broader audience. (Kotler et al., 2015, p.176) Health and Wellness Trend: The growing trend toward health-conscious choices presents an opportunity for the brand to align with consumer preferences. Offering a healthier ice cream option demonstrates responsiveness to current health trends and positions the brand as forward- thinking. Health-conscious consumers are more likely to choose a brand that prioritizes their well-being, enhancing the brand’s competitive position in the market. (Kotler et al., 2015, p.75) Place Strategy Expanded Retail Channels Consider expanding beyond traditional grocery stores and supermarkets. Explore alternative retail channels such as health food stores, fitness centers, and online platforms.

12 Market Reach: Health-conscious consumers often frequent specialty stores and fitness centers. By placing your product in these locations, you directly target your niche audience. Alignment with Health Focus: Health food stores emphasize organic, natural, and dietary- specific products. Your sugar-free and lactose-free ice cream aligns perfectly with their offerings. Collaboration with Cafés and Restaurants Partner with cafés, dessert shops, and restaurants to feature your ice cream on their menus. Experiential Marketing : Cafés and restaurants provide an experiential setting for consumers to discover your product. Tasting sessions can create memorable impressions. Cross-Promotion: Collaborations allow cross-promotion. Cafés can highlight your ice cream as a healthier dessert option, and you can promote their establishment. Rationalize why you would make these changes and how they link back to your other sections

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13 Consider expanding beyond traditional grocery stores and supermarkets. Explore alternative retail channels such as health food stores, fitness centers, and online platforms. This recommendation aligns with the health-conscious trend discussed earlier. It also supports the broad audience appeal by reaching consumers of varied backgrounds. The strategy for Collaboration with Cafés and Restaurants reinforces the health-conscious trend and leverages the broad appeal of your product. Promotion Strategy Three IMC Tools IMC Tool Rationale for selection 1. Advertising Digital Advertising: Harness the power of platforms like Instagram, Facebook, and Twitter. Engage users through visually captivating posts, stories, and sponsored content. Highlight the ice cream’s health benefits, tantalizing flavors, and guilt-free indulgence. 2. Public Relations Cultivating relationships with influential figures such as food bloggers, health influencers, and lifestyle magazines can create a favorable buzz, harnessing the influential force of word-of-mouth

14 marketing. Genuine endorsements from these credible sources have the potential to significantly extend the reach of your product. Additionally, strategically placing display ads on platforms like food- related websites, recipe apps, and health- focused portals enhances visibility within targeted digital spaces, further strengthening your brand's presence among your intended audience . 3. Sales Promotions Sales promotions, such as discounts, buy- one-get-one-free offers, or loyalty programs, can stimulate immediate sales and encourage trial of the new ice cream. This approach aligns with the appreciation for indulgence and convenience in the target market. Limited-time promotions can create a sense of urgency and drive initial interest and purchases. Advertising Creative Advertising Objectives.

15 Kawartha Ice Cream will align its advertising objectives to educate Consumers about Ingredients or Production Processes , demonstrating the product uniqueness and considering the competitive landscape, consumer preferences, and market trends. Objective: To communicate the use of high-quality ingredients and a unique production process (Amstrong et al., 2019, pp. 412). Strategy: Utilize advertising to educate consumers about the sourcing of ingredients, production methods, or any other factors that set Kawartha Ice Cream apart in terms of quality (Amstrong et al., 2019, pp. 412). Main Message Received from the Consumer At Kawartha Ice Cream, we are a growing brand that is investing in marketing strategies, distribution channels, and product innovation to capture a larger share of the market. Our advertising appeals follow three main objectives. Firstly, we aim to point out the uniqueness of the new flavor offered and highlight its high quality and unique features (Amstrong et al., 2019, pp. 421). Secondly, we emphasize that our brand is 100% Canadian and has been in the market for over 86 years, which demonstrates our commitment to customers (Amstrong et al., 2019, pp. 421). Finally, our goal is to showcase our distinctive insignia, represented by our high-quality and unique products featuring a variety of flavors. We particularly highlight the introduction of our new, healthier ice cream option, which is both sugar-free and lactose-free. This product aims to cater to a diverse customer base, including vegans (Amstrong et al., 2019, pp. 421). Media Plan Mobile and social media: TikTok and Instagram are great platforms to reach younger audiences. Collaborating with influencers who promote healthy living can help us promote our

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16 brand to a wider audience. However, it’s important to ensure that the content aligns with our brand values and messaging, especially since we are launching a new, healthier ice cream option that is both sugar-free and lactose-free (Amstrong et al., 2019, p.421). Support and look for promotion in sports : Investing in sports teams can be a great way to increase brand visibility and awareness. However, it’s important to choose a team that aligns with our brand values and messaging. We believe that becoming an angel investor for the Toronto Maple Leaf’s can help us reach more customers and demonstrate our commitment to supporting Canadian sports. BuzzFeed’s sponsored posts: BuzzFeed offers sponsored content that is known for its high engagement rates and ability to create content that resonates with readers and social media users. We believe that sponsored posts on BuzzFeed can be a great way to reach a wider audience and expand our brand globally, especially when promoting our new flavor (Amstrong et al., 2019, pp.421) Summary  Kawartha Ice Cream targets families, which constitute 84% of their customer base. The brand prefers evening purchases from grocery stores.  Kawartha Ice Cream is positioned in the growth stage and emphasizes quality. The brand employs a Penetration Pricing Strategy to gain market share. Kawartha differentiates itself with a positioning statement (“Joy Within a Cup”) and a focus on premium dessert experiences.

17  The recommendation is to introduce a sugar-free and lactose-free ice cream, addressing a market gap and aligning with health-conscious trends. This innovation aims to differentiate the brand, broaden its appeal, and tap into an underserved market segment.  The proposed distribution strategy involves expanding beyond traditional grocery stores to health food stores, fitness centers, and online platforms. Collaboration with cafés and restaurants enhances the brand’s visibility and creates experiential marketing opportunities.  Kawartha Ice Cream employs digital advertising, public relations, and sales promotions as key IMC tools. Digital advertising on platforms like Instagram and TikTok targets younger audiences, while PR leverages influencers and health-focused portals. Sales promotions create urgency and encourage trial purchases. References Armstrong, G. K., Kotler, P., & Opresnik, M. O. (2019). Marketing: An Introduction, 7ce. Gallant, M. (2023, June 30). 15 family-fun events happening this Canada Day weekend in the Mordor Intelligence. (n.d.). Ice cream market size & share analysis - industry research report - growth trends .

18 https://www.mordorintelligence.com/industry-reports/ice-cream-market International Dairy Foods Association. (2023, May 23). Ice cream sales & trends . IDFA. https://www.idfa.org/ice-cream-sales-trends Black raspberry thunder . (2021, April 14). Kawartha Dairy. https://kawarthadairy.com/project/black-raspberry-thunder-500ml/ Creamery, A. H. (n.d.). Ample Hills Creamery. https://amplehills.com/ Haagen-dazs vanilla bean ice cream . (n.d.). Instacart. https://www.instacart.ca/products/28976595-haagen-dazs-vanilla-bean-ice-cream-450- ml? retailer_id=462&region_id=44803220561&utm_medium=sem_shopping&utm_source=i nstacart_google&utm_campaign=ad_demand_shopping_rp_can_walmart- canada&utm_content=accountid-9027578958_campaignid-14094428300_adgroupid- 126764893854_device-c&utm_term=targetid-aud-1749171056398:pla- 936701852590_locationid-9061009_adtype-pla_productchannel-online_merchantid- 458848552_storecode-_productid- 28976595&gad_source=1&gclid=Cj0KCQiA6vaqBhCbARIsACF9M6nHo- ml1sTDCnWcQvhoDnakmLFKr1D9D4DnxKYg7pF2oyKP7AHLEvMaAoazEALw_wc B Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing . Pearson Higher Education AU.

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Marketing Portfolio Assignment Part 2 (Kawartha Dairy) (1)

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