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Carvel Ice Cream – Developing the Beijing Market

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Case Analysis
Carvel Ice Cream – Developing the Beijing Market
Problem (Monica)
How to increase sale in Beijing with limited budget while rivals, such as Haagen-Dazs and Baskin-Robbins, are better known in Beijing?

Issues:
How to introduce cold dairy products to lactose—intolerance customer base who believes that cold food is bad to consume in general?
How to increase primary demand of dairy products especially their flagship product, ice cream cake?
How to implement purposeful strategies with limited budget?

Marketing Mix (Zehra)
Product
Carvel Beijing has 3 categories of products; fountain ice cream that includes soft and hard ice cream, ice cream novelties that is single serving size ice cream and ice cream cakes.
The manager Wang is thinking to bring 2 new types of ice cream cakes from the US; they are Little Love and Piece of Cake since Chinese people eat small size cakes.

Price
Carvel ice cream cakes are more expensive than local ice cream but cheaper than the main competitors. Flour-based cake that Chinese people prefer for their special days is cheaper than ice cream cake.
In order to decrease the cost, Wang plans to change the level of over-run from 30 to 40 per cent to 45 to 50 per cent so he will be able to lower costs by five per cent. Increasing the percentage means people eat less ice cream and more air and it would reduce the quality, however, Chinese people like the ice cream that has more air.

Place (Distribution)
Carvel Beijing has 10 retail stores and 150 wholesale accounts. 4 of the retail stores have full service with a space to sit and they make the products in the store. 6 of the stores are small and they only make soft ice cream in the store and bring hard ice cream and ice cream cake from the main store. The small stores can be built with 70,000 Rmb. and the biggest store needs 415,000 Rmb. to be built.…...

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