• Save
Market Research Project - A study of the Usage & Attitude of Ice Cream Consumers in Dubai
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Market Research Project - A study of the Usage & Attitude of Ice Cream Consumers in Dubai

on

  • 706 views

The study aimed to help provide insights into the following areas: ...

The study aimed to help provide insights into the following areas:
• Understanding the ice cream market in Dubai, UAE
• Understanding the usage and attitude of ice cream consumers in Dubai, UAE by conducting market research
• Identifying factors that drive the consumption and purchase of ice cream and map them according to their importance
• Understanding the latest trends and market leaders in the ice cream industry and trying to understand why a particular brand is preferred over the other.
Thorough market research revealed deep insights that helped us come out with recommendations for any premium ice cream brand wanting to enter or already existing in the Dubai market

Statistics

Views

Total Views
706
Views on SlideShare
703
Embed Views
3

Actions

Likes
2
Downloads
0
Comments
0

1 Embed 3

http://vizedhtmlcontent.next.ecollege.com 3

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Market Research Project - A study of the Usage & Attitude of Ice Cream Consumers in Dubai Document Transcript

  • 1.               This  paper  looks  at  getting  insights  into  the  usage  and  attitude  of  consumers  of  ice  cream  in  Dubai,  United  Arab   Emirates               Page 1 of 38
  • 2.   MARKETING  RESEARCH   PROJECT       A  study  of  the  Usage  and  Attitude  of   Consumers  of  Ice  Cream  in  Dubai,   UAE   Submitted  By  Group  -­‐  5     Neha  Jain                 GAPR12CMM112   Prasan  Arora               GAPR12CMM114   Siddharth  Ravishankar             GAPR12CMM127   Saarim  Bakali               GAPR12CMM110   Jaikesh  Dani               GAPR12CM083     Under  the  Guidance  of     Prof.  Umesh  Kothari             Page 2 of 38
  • 3. 1. Executive  Summary  For   marketers   all   over   the   world,   understanding   consumption   pattern,   attitude   and  usage  of  customers  is  of  utmost  importance.  It  helps  them  to  come  up  with  innovative  products   and   marketing   strategies   to   increase   their   sales.   In   the   ice   cream   industry,   the  consumer  behavior  varies  with  a  lot  of  factors.  After  our  secondary  research,  we  have  found  following  independent  variables,  which  affect  the  buying  decisions  of  customers:     • Packaging   • Price   • Variety  of  Flavors   • Brand  Name   • Availability   • Advertising   • Recommendations    Understanding   consumption   pattern   can   help   marketers   in   developing   strategies   to  generate  maximum  sales.             Page 3 of 38
  • 4.   Fig  1:  Importance  of  Purchase  Drivers  in  2011   Source:  Euromonitor  report,  January  2012.  Consumer  Buying  Behavior  in  the  recession:   Global  online  Survey    The   above   graph   shows   that   quality   and   price   are   the   most   important   factors   driving  purchasing  decisions  of  consumers  globally.  Quality  was  viewed  as  important  for  91%  of   respondents   and   price   for   86%.   In   our   research   we   will   identify   the   importance   of  each  factors  for  ice-­‐cream  category  in  UAE  market.    Problem  Definition    As  identified  from  our  secondary  research  purchasing  decisions  are  always  influenced  by   consumer’s   choices   with   respect   to   brand,   product   prices,   features,   design,  convenience,   etc.   Marketers   need   to   identify   the   most   important   criteria,   which  influence  the  consumer-­‐buying  pattern  and  analyze  why  consumer  prefers  one  brand  to  the  other.  Several  questions  need  to  be  answered  to  understand  the  consumer  buying  behavior   like   –   Why   people   like   to   consume   ice   cream?   Which   criteria   lead   to   a  particular  brand  selection?  What  is  the  consumer  perception  towards  different  brands  of   a   particular   product?   This   study   is   intended   to   identify   the   customer   usage   and  attitude  towards  ice-­‐cream  consumption  in  UAE  market.     Page 4 of 38
  • 5. Objectives:  Following  are  our  research  objectives:     • To  understand  the  usage  and  attitude  of  ice  cream  consumers  in  Dubai,  UAE   • To   identify   factors   that   drive   the   consumption   of   ice   cream   in   Dubai   and   map   them  according  to  their  importance  in  influencing  purchase     • To   make   recommendations   for   a   premium   ice   cream   brand   pertaining   to   the   Dubai  market         Page 5 of 38
  • 6. 2. Table  of  Contents   1.   Executive  Summary  .....................................................................................................................  3   2.   Table  of  Contents  ..........................................................................................................................  6   3.   Background  .....................................................................................................................................  7   4.   Research  Methodology   ............................................................................................................  14   4.1.   Problem  Definition  and  Objectives  ...........................................................................  15   4.2.   Research  Design  ................................................................................................................  15   4.3.   Sampling  ...............................................................................................................................  16   4.4.   Data  Collection  ...................................................................................................................  16   4.5.   Data  Processing  and  Analysis  .....................................................................................  16   4.6.   Conclusion  and  Report  ...................................................................................................  16   5.   Data  Analysis  ...............................................................................................................................  17   6.   Conclusion  ....................................................................................................................................  27   6.1   Recommendations  ..................................................................................................................  27   6.2     Limitations  ................................................................................................................................  28   6.3   Scope  for  further  Research  .................................................................................................  28   5.   Annexure  .......................................................................................................................................  29   9.1.   Questionnaire  .....................................................................................................................  29   9.2.   Raw  Data  ..............................................................................................................................  37   10.   References  ..................................................................................................................................  38         Page 6 of 38
  • 7. 3. Background  Ice  Cream  and  weather  conditions      The   sale   of   ice   cream   is   affected   by   many   variables.   Primary   among   these   is   weather  conditions.   The   harsher   and   specifically   hotter   the   climate,   the   more   ice   cream   is  generally  purchased.  While  a  favorable  weather  conditions  causes  a  decline  in  demand  for  ice  cream.    For   instance,   research   suggested   that   more   favorable   weather   conditions   in   2009  contributed  to  slowing  the  expected  decline  in  demand  for  ice  cream  as  a  result  of  the  recession  at  global  level.  (Euromonitor  International,  2009)    Also,  despite  the  fact  that  ice  cream  is  not  a  staple  product  like  milk  or  bread,  further  research  also  proves  that  it  is  regarded  as  a  necessity  in  many  countries  during  the  hot  summers.  Impulse  ice  cream  is  the  largest  ice  cream  category  at  global  level;  accounting  for  52%  of  retail  volume  sales  followed  by  the  take-­‐home  ice  cream  which  accounts  for  37%  of  global  retail  volume  sales.  (Euromonitor  International,  2009)    Ice  cream  and  recession      Although,   research   indicates   that   in   hot   countries   ice   cream   is   considered   as   a   staple  product,   it   is   definitely   not   recession   proof   like   other   staple   products.   Recession   does  impact   ice   cream   sales   but   the   impact   is   not   too   significant.   The   major   reason   behind  this   is   that   the   demand   for   ice   cream   in   mass-­‐market   price   brackets   is   heavily  dependent   on   weather   conditions   and   demographic   growth,   regardless   of   moderate  fluctuations  in  disposable  income.  (Euromonitor  International,  2010)    Also,   the   effect   that   recession   has   on   ice   cream   sales   is   on   the   impulse   ice   cream   buying  category  rather  than  the  take  home  ice  cream  category.  Due  to  the  economic  pressure,  consumers  turn  to  more  affordable  indulgence  products  such  as  take  home  ice  creams.  This   resulted   in   the   take-­‐home   ice   cream   increasing   its   penetration   in   household  formats,   due   to   lower   prices   and   more   affordable   packaging.   (Euromonitor   Page 7 of 38
  • 8. International,  2010)    The  sales  for  premium  ice  cream  on  the  other  hand  remains  more  or  less  unaffected  in  the   less   developed   Middle   Eastern   and   African   markets,   as   it   is   mostly   bought   by  wealthy  consumers  and  this  consumer  group  was  only  slightly  affected  by  the  recession.      Emerging  economies  predicted  to  drive  future  growth    The   global   ice   cream   sales   are   projected   to   grow   by   12%   in   retail   volume   terms   over  2009-­‐2014   with   emerging   economies   predicted   to   drive   the   future   growth  (Euromonitor  International,  2009).  Further,  research  shows  that  Asia-­‐Pacific  along  with  the   Middle   East   and   Africa   will   be   the   most   dynamic   regions   in   terms   of   growth.   Ice  cream  sales  in  Middle  East  and  Africa  specifically  are  projected  to  grow  by  20%  in  retail  volume   over   2009-­‐2014   (Euromonitor   International,   2010).   The   main   drivers   of   this  growth   are   relatively   warm   weather,   rapid   demographic   growth   and   the   steady   trade  up  from  artisanal  snacks  to  packaged  ice  cream  in  urban  areas.    The  Ice  cream  industry  in  UAE    The   ice   cream   market   in   UAE   is   very   big   and   reached   an   annual   consumption   of   US   $  56.6   million   in   2011.   The   market   is   expected   to   show   significant   growth   and   is  estimated   to   reach   an   annual   consumption   level   of   US   $   68.3   million   by   2018  (Datamonitor,  2012).  In  volume  terms,  11.4  million  liters  of  ice  cream  was  consumed  in  2011  with  the  consumption  estimated  to  reach  12.7  million  liters  in  2015  (Datamonitor,  2012).  The  graphs  below  show  the  ice  cream  consumption  trends  in  the  UAE.     Page 8 of 38
  • 9.   Fig  2:  Ice  Cream  market  in  the  UAE       Fig  3:  Volume  Sales  of  Ice  Cream  in  the  UAE    Specialist  retailers  and  supermarkets  are  the  primary  channels  of  ice  cream  distribution  in   the   U.A.E.   In   2011,   33%   of   all   ice   cream   sales   came   from   specialist   retailers,   while  supermarkets/hypermarkets   have   a   30%   market   share   (Datamonitor,   2012).   This  channel  is  expected  to  grow  and  gain  further  share  in  the  coming  years.  These  outlets  have   superior   facilities   in   terms   of   branded   freezers   and   refrigerated   distribution  networks.  The  chart  below  shows  the  market  share  of  different  channels  of  distribution.     Page 9 of 38
  • 10.   Fig  4:  Ice  Cream  Sales  by  channel  in  the  UAE    The   ice   cream   segment   can   be   classified   into   the   following:   impulse,   take   home   and  artisanal.  The  annual  sales  for  impulse  segment  stood  at  US  $29.5  million  in  2011.  The  sales   figures   for   take   home   and   artisanal   segments   were   US   18.3   million   and   US   $   8.5  million  respectively  (Datamonitor,  2012).  The  ice  cream  in  each  of  the  above  category  can   also   be   classified   on   the   basis   of   ingredients,   namely,   water   based   ice   cream   and  milk   based   ice   cream.   The   market   for   artisanal   ice   cream   is   very   fragmented.   The  market  shares  of  major  players  in  the  impulse  and  take  home  segment  are  shown  in  the  figures  below:       Page 10 of 38
  • 11.   Fig  5:  Company  Shares  in  the  UAE    International  Foodstuffs  Co.  is  the  leading  payer  in  UAE  with  36  %  value  market  share  followed   by   Galadari   Ice   cream   Co   LLC   with   a   22   %   market   share.   International  Foodstuffs  Co.  operates  with  three  brands  in  the  UAE  market:  London  Dairy,  Igloo  and  Quanta.    The  market  share  distribution  for  the  Ice  cream  companies  can  be  seen  as  below:   Ice Cream Companies % Market share by volume 2011-12 Unilever Middle East 2% 0% Others 14% Mars Chocolat International France Foodstuffs Co 12% 36% Galadari Ice National Cream Co LLC Trading & 22% Development Est(NTDE) 14%   Fig  6:  Ice  Cream  Companies  %  Market  Share  by  Volume    There  has  been  an  increasing  trend  of  Value  added  ice  creams  with  healthier  variants  or  exotic   flavors   showing   good   response   in   the   UAE   market.   The   increasing   health  awareness   is   impacting   consumer   behavior   and   they   are   opting   for   cream   products   low   Page 11 of 38
  • 12. in   sugar   and   fat   content.   Also   ice   cream   products   having   natural   ingredients   and   real  fruits   have   gained   popularity   and   seeing   increasing   growth   in   sales.   Chocolate   and  Vanilla   still   remain   the   most   popular   flavor   among   the   UAE   consumers.   The   regional  players   have   been   adding   new   flavors   like   chikoo,   lychee   and   mango   to   expand   the  range   of   flavors.   The   sharp   rise   in   the   number   of   foreign   expatriates   has   created   new  major   consumer   groups   in   the   United   Arab   Emirates   and   it   is   expected   that   focus   on  offering   a   wide   menu   will   grow,   as   players   seek   to   appeal   to   a   wide   range   of   ethnic  groups.   This   is   the   main   reason   for   the   companies   going   for   different   variants   and  texture  combinations.  London  dairy  has  been  one  of  the  companies  to  quickly  adapt  to  these  new  flavor  trends  by  launching  premium  varieties  like  Caramel  Crunch  and  Bravo  Biscottino.  The  Brand  also  launched  Chikoo  flavor  recently.  A  rather  significant  trend  was  in  the  bulk  take  home  dairy  ice  cream  segment.  It  showed  a   dynamic   growth   rate   of   8   %.     The   reason   for   this   trend   is   the   convenience   factor  where   in   the   consumer   has   the   flexibility   to   store   it   and   consume   it   as   and   when  desired.  This  segment  has  also  seen  innovations  in  packaging  sizes.    London  Dairy  came  up  with  ice  cream  cups  (125  ml)  catering  to  the  growing  health  concerns  with  regard  to  portion  sizes.    Baskin   Robbins   owned   by   Galadari   Ice   cream   Co   LLC.   is   the   most   popular   Ice   cream  brand   followed   by   Igloo   and   London   Dairy.   The   market   share   for   the   top   brands   in  terms  of  sales  is  shown  below.     Page 12 of 38
  • 13. Ice Cream Brands % Market Share by sales Others Baskin 19% Robbins Ben & Jerrys 21% 3% Quanta 3% Galaxy Igloo 7% 18% Haagen- Dazs London 14% Dairy 15%   Fig  7:  Ice  Cream  Brands  %  Market  Share  by  sales    Focusing   towards   the   health   consciousness   trends,   consumption   of   substitutes   like  frozen   yogurt   is   also   increasing.   To   tackle   this,   ice   cream   companies   are   also   coming   up  with  low  fat  ice  cream  variants.  However,  health  consciousness  is  unlikely  to  affect  the  ice  cream  market  in  the  UAE.    As  per  a  Euromonitor  study  published  in  November  2012,  consumers  are  inclined  more  towards  tasty  food  variants  instead  of  diet  food  varieties.  Frozen  yogurt  market  representing  less  than  1%  of  total  ice  cream  sales  is  probably  a  testimony   of   consumer   indulgence   towards   ice   creams   with   lesser   worries   about   the  health.  Moreover,  given  a  slow  growth  of  3.7%  of  the  frozen  yogurt  market,  it  does  not  possess  any  significant  threat  to  the  ice  cream  market  (Datamonitor,  2012).    Consumer  food  Service  in  UAE    Baskin  Robbins  is  the  only  ice  cream  brand,  which  figures  in  the  list  of  leading  brands  in  consumer   foodservice   category   in   UAE.   The   brand   benefits   from   strong   global   presence  and  mighty  domestic  franchise  in  UAE.  (Euromonitor  International,  2012)   Brand   Global  Brand  Owner   Outlets   Baskin  Robins   Galadari  Ice  Cream  Co  LLC   113   Starbucks   Starbucks  Corp   99   McDonald’s   McDonald’s  Corp   95   Page 13 of 38
  • 14. Subway   Doctor’s  Associates  Inc.   83   Costa  Coffee   Associate  Inc.   80   KFC   Yum!  Brands  Inc.   75   Dunkin  Donuts   Dunkin’  Brands  Inc.   65   Pizza  Hut   Yum!  Brands  Inc.   62   Burger  King   Burger  King  Holding  Inc.   55   Gloria  Jean’s   Jireh  International  Pvt.  Ltd.   40    Consumer’s   weight   concerns   appeared   to   be   outweighed   by   a   desire   for   indulgence   and  there  are  no  signs  of  consumer’s  demand  for  indulgence  slowing.  Ice  cream  companies  are   adapting   entire   menus   to   reduce   fat   and   sugar   content,   and   are   likely   to   offer   a  handful   of   naturally   healthy   options   for   those   who   are   concerned   about   their   weight.  This   will   help   address   a   majority   of   consumers,   who   are   likely   to   remain   concerned  about  their  weight  but  who  will  do  little  to  address  this  issue.   4. Research  Methodology  The  following  figure  provides  an  outline  of  the  research  methodology  for  the  study.     Page 14 of 38
  • 15.   Fig  8:  Research  Methodology    4.1. Problem  Definition  and  Objectives  The   ice   cream   industry   is   an   ever-­‐growing   industry   especially   in   the   Middle   East   and  Africa   and   as   part   of   our   research   we   intent   to   understand   the   usage   and   attitude   of   the  consumers  of  ice  cream.       The  objectives  of  the  study  are:     1. Study   the   Ice   Cream   Industry   in   Dubai,   UAE   –   The   first   intention   of   this   research   is   to   study   and   analyze   the   ice   cream   industry   in   the   UAE.   This   will   include   a   study   to   determine   the   most   popular   brands,   the   recent   trends   in   the   industry,   the  future  growth  of  the  industry,  etc.   2. Study  the  Usage  and  Attitude  of  the  consumers  of  ice  cream     3. Identify  the  top  ice  cream  brands  in  UAE  and  user  perceptions  towards  them  4.2. Research  Design  Once   the   context   and   scope   was   decided,   we   selected   and   designed   our   research  methods.   We   decided   to   carry   out   secondary   research   by   reading   and   researching   Page 15 of 38
  • 16. various   research   journals,   articles   and   reports   about   the   global   ice   cream   industry   with  a   specific   focus   on   the   ice   cream   industry   in   the   UAE.   For   primary   research,   we   decided  to  conduct  a  quantitative  survey  to  the  usage  and  attitude  study.  We  planned  to  conduct  fact  to  face  interviews  for  the  survey.  4.3. Sampling  We   decided   to   take   a   sample   size   of   30   for   the   data   to   be   statistically   valid.   The   method  of  sampling  used  was  convenience  sampling.  4.4. Data  Collection  With  the  above  plan  in  place,  we  then  went  to  the  food  courts,  hypermarkets  and  local  grocery  stores  to  interview  consumers  to  understand  what  forms  important  parameters  for   them   with   regard   to   purchasing   ice   cream,   their   preferences,   their   usage   patterns,  their  attitudes,  etc.  4.5. Data  Processing  and  Analysis  On   receiving   the   data   from   the   survey   conducted,   the   data   was   then   electronically  transferred  to  software  such  as  SPSS  and  Qualtrics  for  analysis.  The  analysis  helped  us  validate   certain   trends,   behavior   and   points   that   we   came   across   in   the   research  journals.  4.6. Conclusion  and  Report  Based  on  the  data  analysis,  certain  trends  about  the  consumer  attitude  and  usage  were  identified  and  reported  as  conclusions  of  the  project.               Page 16 of 38
  • 17. 5. Data  Analysis  The   objective   of   our   research   project   was   to   understand   the   usage   and   attitude   of  consumers  of  ice  cream  in  Dubai.  As  part  of  our  survey  we  asked  respondents  various  questions   to   understand   their   demography   and   also   their   psyche.   Also   we   needed   to  understand   their   choice   of   preferred   brands   as   well   as   the   factors   that   drove   them   to  purchase  those  brands.  The  data  collected  revealed  certain  surprising  facts  and  insights  into  the  consumer  world.          Key  Customer  Insights    A   part   of   our   survey   also   consisted   of   open-­‐ended   questions   to   help   us   get   a   deeper  understanding   of   the   inner   feelings   or   subconscious   feelings   of   consumers.   The   main  reason   for   consuming   ice   cream   as   identified   by   many   respondents   was   the   sweet,  yummy   taste   of   ice   cream.   Some   associated   the   act   of   consuming   ice   cream   as   a   fun   and  feel   good   activity   while   others   consumed   ice   cream   to   socialize   and   have   a   good   time  with  their  friends  and  family.  For  some,  it  is  a  way  to  break  the  monotony  of  their  life.  Few  respondents  said  there  was  no  particular  reason  for  consuming  ice  cream,  and  ate  on  impulse  rather  than  a  deep  emotion,  while  few  also  said  that  it  provided  them  respite  from  the  Dubai  heat.    Sweetness   and   Happiness   emerged   as   the   strongest   associations   with   the   word   Ice  cream.   Most   of   the   respondents   associated   the   term   ‘Sweet’   or   ‘Joy’   to   express   their  connotation   of   ice   cream.   Many   identified   functional   benefits   like   flavors   and   taste   as  their   top   of   mind   recall   association   with   ice   cream.   Some   respondents   could   derive  emotional  benefits  of  reinventing  their  “childhood  memories”  by  having  ice  cream.  One  respondent   even   related   technology   with   ice   cream,   as   he   mentioned   that   ice   cream  reminds   him   of   the   “latest   android   version   of   ice-­‐cream   sandwich”.   Also,   one  respondent  who  declared  herself  an  ice  cream  lover  said  that  the  mere  mention  of  the  word  ice-­‐cream  made  her  feel  like  having  it.           Page 17 of 38
  • 18. Usage    As   per   the   convenient   sampling   done,   some   significant   observations   could   be   made  about   their   consumption   pattern.   One   such   observation   was   with   respect   to   the  frequency   of   consumption.     63%   of   the   surveyed   respondents   mentioned   that   they  purchased  ice  creams  at  least  once  a  week.  This  clearly  illustrates  the  fact  that  ice  cream  is  a  frequent  purchase  item  in  Dubai.      The  frequency  pattern  can  be  showed  in  the  pie  chart  below.     Frequence of Consumption 17% at least once a week at least once a 20% fortnight 63% at least once a month   Fig  9:  Frequency  of  Consumption    Also   it   was   found   that   high   price   or   an   increase   in   price   had   minimum   effect   on   the  purchase  pattern.  73%  of  the  surveyed  showed  price  insensitivity  towards  their  favorite  brand.  This  can  be  shown  from  the  results  below.     Page 18 of 38
  • 19. Effect of High price on purchase (10- no effect 1-maximum effect) 7-­‐10   4-­‐6   1-­‐3   0   5   10   15   20   25         Fig  10:  Effect  of  High  Price  on  Purchase    The   ice   creams   buyers   showed   bias   in   terms   of   their   favorite   flavors   and   the   form   of   ice  cream  they  purchased.    Cream  based  ice  cream  seemed  the  clear  favorite  with  everyone  preferring   it   to   water   based   or   sorbet   ice   creams.   Also   ice   creams   in   cup   and   cone   were  very  popular  amongst  the  consumers.  This  is  illustrated  below.       13% 27% Cone Candy/stick Tub 32% Cup 17% Dessert 11%   Fig  10:  Preference  of  form  of  ice  cream           Page 19 of 38
  • 20. Also,  chocolate  proved  to  be  the  unanimous  choice  with  42  %  majority  as  the  favorite  flavor,  keeping  in  line  with  worldwide  trend.  Vanilla  was  the  2nd  most  liked  flavor     Favourite Ice cream flavours Others Coffee 16% 5% Chocolate Strawberry 42% 13% Vanilla 24%   Fig  11:  Preferred  ice  cream  flavor    Ice  Cream  Consumption    The   below   chart   shows   that   of   all   the   ice   cream   brands   in   Dubai,   London   Dairy   is   the  most   consumed   brand   by   users   at   57%.   The   next   most   popular   brand   in   terms   of  consumption  is  Baskin  Robbins  at  43%.  Both  these  brands  of  ice  cream  happen  to  fall  in  the   semi-­‐premium   price   range   and   are   relatively   high   on   availability   as   compared   to  other  ice  cream  brands  which  are  either  too  premium  priced  such  as  Cold  Stone,  Häagen  Dazs  and  Ben  &  Jerry’s  which  are  available  only  in  specialty  ice  cream  parlors  or  outlets.  A  rather  surprising  fact  is  that  brands  like  Igloo  and  Walls  although  priced  lower  than  the   other   brands   mentioned   below   seem   to   be   less   consumed.   A   reason   behind   this  could   also   be   that   a   majority   of   the   respondents   surveyed   happened   to   come   from  medium   to   high   income   and   hence   preferred   to   consume   the   higher   priced   and   more  renowned  ice  cream  brands       Page 20 of 38
  • 21. 60% 50% 40% 30% 20% 10% 0%   Fig12:  Ice  Cream  consumption  in  Dubai    Brand  Recall  /  Brand  Awareness    London  Dairy  and  Basking  Robbins  both  stood  out  as  brands  that  are  on  the  top  of  mind  of   consumers.   60%   of   respondents,   all   of   whom   are   frequent   consumers   of   ice   cream  recalled   these   two   brands   when   asked   to   mention   ice   cream   brands.   Galaxy   and  Magnum   also   did   relatively   well   in   the   test   of   brand   recall   or   brand   awareness.  Surprisingly,   iconic   brands   such   as   Häagen   Dazs   and   Cold   Stone   Creamery   did   not   seem  to  be  top  of  mind  despite  their  much  more  famous  brand  names  as  compared  to  London  Dairy   and   Baskin   Robbins.   Also   local   brands   such   as   Igloo   and   Unikai   failed   to   get   a  mention  when  it  came  to  occupying  a  share  of  the  consumers  mind.     Page 21 of 38
  • 22. 18 16 14 12 10 8 6 4 2 0   Fig  13:  Top  of  mind  brands    Favorite  Ice  Cream  Brands  /  Most  Preferred  Brand    London   Dairy   and   Baskin   Robbins   both   garnered   an   equal   number   of   votes   from  respondents   as   their   favorite   ice   cream   brand.   Cold   Stone   and   Häagen   Dazs   are   also  among   the   top   four   brands   chosen   by   the   respondents.   While   both,   London   Dairy   and  Baskin   Robbins   shared   an   equal   preference   amongst   consumers,   they   seem   to   be  associated   with   rather   different   value   propositions.   The   major   reason   why   Baskin  Robbins   was   preferred   as   a   favorite   brand   was   the   variety   of   flavors   that   it   had.   Almost  all  the  respondents  who  choose  Baskin  Robbins  as  their  favorite  brand  were  unanimous  in   singling   out   the   variety   as   the   major   reason.   London   Dairy   on   the   other   hand   seemed  to  have  a  convenience  factor  associated  with  it.  Almost  all  the  respondents  who  choose  London   Dairy   as   their   favorite   brand   singled   out   the   convenience   factors   such   as  availability,  relatively  low  price,  packaging  etc.  as  the  reasons  behind  their  choice.       Page 22 of 38
  • 23. 8 7 6 5 4 3 2 1 0 London Baskin Cold Häagen Walls Galaxy Magnum Gelato Dairy Robbins Stone Dazs Creamery   Fig  14:  Most  Preferred  Brands    Factors  that  most  influence  ice  cream  purchase    Several  factors  drive  ice  cream  purchases  and  several  factors  influence  the  purchase  of  ice  cream.  We  tried  to  analyze  8  broad  factors  that  have  a  role  in  the  brand  of  ice  cream  purchased.  Survey  results  showed  that  the  number  one  factor  that  influences  purchase  decision   is   ‘Variety   of   Flavors’.   More   than   half   the   respondents   ranked   this   factor   as   the  most  important  or  second  most  important  factor  behind  ice  cream  purchase.       Rank 1 Recommendations Advertising Availability Promotions & Deals Brand Name Variety of Flavors Price Packaging 0 2 4 6 8 10 12                  Fig  15:  Factors  influencing  Purchase  Decision  –  Rank  1    The  second  most  important  factor  that  influenced  ice  cream  purchase  was  ‘Price’.  Price  also   played   a   major   role   in   deciding   how   often   consumers   purchased   ice   creams   and   Page 23 of 38
  • 24. which   category   of   ice   creams   thy   purchases   (Premium,   semi-­‐premium   or   standard)  depending  on  their  willingness  to  pay.       Rank 2 Recommendations Advertising Availability Promotions & Deals Brand Name Variety of Flavors Price Packaging 0 1 2 3 4 5 6 7   Fig  16:  Factors  influencing  Purchase  Decision  –  Rank  2      While   variety   of   flavors,   followed   by   price,   was   the   most   important   factor,  recommendations   and   advertisements   were   almost   negligible   when   it   came   to  importance.  This  probably  gives  us  an  idea  that  with  ice  cream  people  generally  do  not  go   ahead   with   recommendations   as   every   individual   has   different   taste   buds   and   also  different  price  points.  Both  the  figures  below  clearly  indicate  that  advertising  is  the  least  important   factor   considered   by   consumers.   This   means   that   ice   cream   advertisements  are  either  unable  to  strike  a  chord  with  the  consumers  or  adverting  is  not  an  effective  marketing  tool  for  this  category  of  users.     Rank  8   Recommendations Advertising Availability Promotions & Deals Brand Name Variety of Flavors Price Packaging 0 1 2 3 4 5 6   Fig  17:  Factors  influencing  Purchase  Decision  –  Rank  8   Page 24 of 38
  • 25.     Rank 7 Recommendations Advertising Availability Promotions & Deals Brand Name Variety of Flavors Price Packaging 0   1   2   3   4   5   6   7   8   9   10     Fig  18:  Factors  influencing  Purchase  Decision  –  Rank  7    Low  calorie  ice  cream    From   the   figure   below,   we   notice   that   the   awareness   for   sugar   free   /   low   calorie   ice  cream  is  relatively  high  with  87%  respondents  affirming  this  fact.  However,  only  37%  of  respondents   were   willing   to   switch   to   low   calorie   ice   creams,   as   shown   in   the   figure  below.   So   while   we   can   positively   confirm   that   awareness   of   sugar   free   ice   creams   is  high,   the   functional   benefits   haven’t   been   able   to   break   through   the   emotional   barrier  consumers  have  with  existing  brands  of  ice  cream.       Awareness of sugar free / low fat ice creams? 13% Yes No 87%   Fig  19:  Awareness  of  sugar  free/  low  fat  ice  creams     Page 25 of 38
  • 26.   Willingless to switch to sugar free / low fat ice creams Willing 37% Not willing 43% Neutral 20%   Fig  20:  Willingness  to  switch  to  sugar  free  /  low  fat  ice  creams                                 Page 26 of 38
  • 27. 6. Conclusion   6.1   Recommendations  Advertising:   As   our   research   shows   that   advertising   does   not   have   a   major   effect   on  consumers  when  they  make  their  purchasing  decision,  we  recommend  that  marketers  need   to   make   their   communication   strategy   more   engaging   to   be   able   to   influence  buyers.    Product  Portfolio  Variety  of  Flavors:    We  recommend  ice  cream  brands  to  keep  innovating  and  introduce  new  exotic  flavors  to  suit  taste  buds  of  ice  cream  buyers.  Low  Calorie:    Although  a  significant  section  of  market  is  health  conscious,  majority  of  consumers  are  not  willing  to  switch  to  low  calorie  ice  creams.  We  recommend  that  companies  should  focus   more   on   developing   tasty   variants   instead   of   focusing   on   offering   healthy   ice  creams.  They  concentrate  on  the  core  benefit  of  ice  creams  like  flavours,  packaging  etc.  rather  than  coming  out  with  new  products  with  additional  health  benefits.    Consumption:    Each   respondent   preferred   to   consume   cream   based   ice   creams   over   water   based   ice  creams.  Manufacturer  should  look  to  innovate  in  the  cream  based  ice-­‐cream  category  as  this  is  the  popular  choice.    Branding:    Creating  a  brand,  which  is  loved  by  consumers,  should  be  of  prime  importance  for  ice  cream  manufacturers.  As  people  don’t  mind  spending  extra  for  the  ice-­‐cream  brand  they  love.   This   will   give   companies   an   edge   in   the   highly   competitive   and   growing   market.  Ice   cream   buyers   are   more   attracted   towards   international   brands   like   London   Dairy,  Baskin   Robbins   etc.   and   are   willing   to   pay   high   prices   for   them.     These   brands   could  therefore  leverage  on  the  brand  loyal  customers  and  continue  charging  premium  from  them.   The   local   ice   cream   brands   like   Unikai   are   not   very   popular.   They   should   use   low   Page 27 of 38
  • 28. pricing   strategy   to   attract   the   non-­‐brand   conscious   customers   as   price   is   one   of   the   key  purchase  drivers  for  them.  6.2     Limitations   • This   research   was   conducted   using   convenient   sampling.   Convenient   sampling   was  done  primarily  because  of  location  and  permission  constraints.     • Further,   the   secondary   research   consisted   primarily   of   resources   readily   available  free  resources  on  the  Internet.     • As  interviewers  conducted  the  surveys,  there  could  be  a  possibility  that  a  status   bias  might  have  influenced  some  of  the  responses.     • Lastly,   the   research   did   not   differentiate   between   take   home   consumption   and   onsite  consumption  of  ice  cream   6.3   Scope  for  further  Research   Our   research   shows   that   consumers   are   not   willing   to   make   a   shift   to   low   fat   ice   creams.   However   there   is   further   research   required   to   understand   that   why   these   consumers  are  not  willing  to  shift  to  low  fat  ice  creams?     Besides,   brands   must   probe   further   to   understand   that   whether   consumers   are   equally  price  insensitive  when  they  consume  any  other  ice-­‐cream  as  they  are  when   consuming  their  favorite  brand  of  ice  cream.   Also,  take  home  and  on  site  consumption  patterns  can  be  studied  in  further  detail.               Page 28 of 38
  • 29. 5. Annexure  9.1. Questionnaire    Dear  Respondent,    We   are   students   of   SP   Jain   School   of   Global   Management   and   as   part   of   our   MBA  research  project;  we  are  trying  to  understand  the  consumer  behavior  in  the  ice  cream  industry   in   Dubai.   This   research   will   help   us   in   inferring   the   usage   and   attitude   of  consumers   towards   ice   and   accordingly   make   managerial   recommendations   to   the  important   brands   in   the   market.   Please   spare   maximum   10-­‐15   minutes   to   share   your  valuable   opinion   by   answering   the   following   questions.   Information   provided   will   be  kept  highly  confidential.                                            I   declare   that   this   interview   has   been   carried   out   strictly   in   accordance   with   your  specification   and   has   been   conducted   within   the   approval   of   SP   Jain   School   of   Global  Management.       Interviewer’s  signature                     Page 29 of 38
  • 30.    SECTION  A:  SCREENER  QUESTIONS     1. Do  you  consume  ice  cream?     Options   Code   Criteria   Yes   0   CONTINUE   No   1   TERMINATE       2. Do  you  reside  in  the  UAE?     Options   Code   Criteria   Yes   0   CONTINUE   No   1   TERMINATE       3. For  how  long  have  you  been  residing  in  the  UAE?     Options   Code   Criteria   More  than  3  months   0   CONTINUE   Less  than  3  months   1   TERMINATE       4. Do  you  reside  in  the  UAE?     Options   Code   Criteria   At  least  once  a  day   0   CONTINUE   At  least  once  a  week   1   CONTINUE   At   least   once   a   2   CONTINUE   fortnight   At   least   once   a   3   CONTINUE   month   Occasionally   (less   4   TERMINATE   than  once  a  month)       5. Which  age  group  do  you  fall  under?     Options   Code   Criteria   Below  13  years   0   TERMINATE   Between  13-­‐19  years   1   CONTINUE   Between  20-­‐27  years   2   CONTINUE   Between  27-­‐34  years   3   CONTINUE   Above  34  years   4   TERMINATE     Page 30 of 38
  • 31. SECTION  B:  DEMOGRAPHIC  QUESTIONS     6. Record  Gender     Options   Code   Male   0   Female   1       7. Record  Nationality       Options   Code   If   Other,   please   specify   Emirati   0     Arab  Expat   1     Asian  Expat   2     European  Expat   3     Other  Expat   4         8. Record  Marital  Status     Option   Code   Single   0   Married   1       9. Record  Occupation     Option   Code   Student   0   Salaried  Professional   1   Self-­‐employed   2   Home  maker   3   Currently   4   Unemployed       10. What  is  your  monthly  income  (If  student,  Pocket  money)     Option   Code   Below  AED  5,000   0   AED  5,000  -­‐  10,000   1   AED  10,000  -­‐  20,000   2   Above  AED  20,000   3   Dont   want   to   4   disclose   Page 31 of 38
  • 32.   11. What  do  you  prefer  to  do  in  your  spare  time?     Option   Code   If   Other,   please   specify   Reading   0     Outdoor  Activities   1     Travelling   2     Cultural  Arts   3     Socializing   4     TV  /  Internet   5     Others   6        SECTION  III  –  USAGE  AND  ATTITUDE  QUESTIONS     12. What  comes  to  your  mind  when  you  hear  the  word  ‘ice  cream?               13. Why  do  you  consume  ice  cream?               14. When  do  you  mostly  consume  ice  cream?     Option   Code   If   Other,   please   specify   Occasions  &  celebrations   0     After  meals   1     When  I  feel  low   2     Impulse  -­‐  When  I  see  ice  cream   3     or  feel  like  having   Others   6         15. In  what  form  do  you  consume  ice  cream?     Option   Code   Cone   0   Cup   1   Candy  (Stick  or  bar)   1   Page 32 of 38
  • 33. Tub  or  Brick   1   Ice   cream   desserts   1   e.g.  sundae  /  float       16. What  type  of  ice  cream  do  you  like?     Option   Code   Cream  Based   0   Water  Based   1       17. Which  is  your  favorite  ice  cream  flavor?     Option   Code   If   Other,   please   specify   Chocolate   0     Vanilla   1     Strawberry   1     Coffee   1     Others   1       18. Where  do  you  purchase  ice  creams  from?     Option   Code   If   Other,   please   specify   Supermarkets   0     Grocery   shop   /   1     Convenience  store   Ice   cream   outlet   /   1     parlor   Restaurant   1     Others   1         19. Who  do  you  consume  ice  cream  with?     Option   Code   If  Other,  please  specify   Myself   0     With  Family   1     With  Friends   1     Others   1         20. Does  the  Dubai  climate  influence  your  ice  cream  eating  habits?     Option   Code   Yes   0   Page 33 of 38
  • 34. No   1       21. Have  you  heard  of  sugar  free  /  low  fat  ice  creams?     Option   Code   Yes   0   No   1       22. If   made   available,   would   you   prefer   to   consume   sugar   free   /   low   fat   ice   creams   (Rate  on  a  scale  of  1  to  10,  1  being  least  preferred  and  10  being  most  preferred)    1   2   3   4   5   6   7   8   9   10                           23. Would  you  prefer  to  buy  substitutes  like  yogurts,  fruits  or  other  deserts  in  place   of  ice  cream  (Rate  on  a  scale  of  1  to  10,  1  being  least  preferred  and  10  being  most   preferred)    1   2   3   4   5   6   7   8   9   10                            SECTION  IV  –  IMPORTANCE  OF  ATTRIBUTES  QUESTIONS     24. Purchase   Influence:   Rank   the   factors   that   most   influence   your   ice   cream   purchase    Factors   Rank   Rank   Rank   Rank   Rank   Rank   Rank   Rank   1   2   3   4   5   6   7   8   Packaging                   Price                   Variety  of  Flavors                   Brand  Name                   Promotions  &  Deals                   Availability                   Advertising                   Recommendations                             Page 34 of 38
  • 35. SECTION  V:  GENERIC  BRAND  RELATED  QUESTIONS     25. Which  ice  cream  brands  are  you  aware  of     Brand   First   Other   Aided   Mentioned   Mentions  Baskin  Robbins   1   1   1  London  Dairy   2   2   2  Magnum   3   3   3  Walls   4   4   4  Cold  Stone  Creamery   5   5   5  Unikai   6   6   6  Igloo   7   7   7  Häagen  Dazs   8   8   8  Galaxy   9   9   9  Mars   10   10   10  Snickers   11   11   11  Nestle   12   12   12  Ben  &  Jerry’s   13   13   13  Others  (Pls  Specify)   14   14   14       26. Which  brand  of  ice  cream  do  you  currently  consume?     Brand   Code   Baskin  Robbins   1   London  Dairy   2   Magnum   3   Walls   4   Cold  Stone  Creamery   5   Unikai   6   Igloo   7   Häagen  Dazs   8   Galaxy   9   Mars   10   Snickers   11   Nestle   12   Ben  &  Jerry’s   13   Others  (Pls  specify)   14                     Page 35 of 38
  • 36. SECTION  VI:  SPECIFIC  BRAND  RELATED  QUESTIONS     27. Which  is  your  favorite  brand?               28. Why  is  the  brand  chosen  in  the  above  question  your  favorite  brand?               29. Do  you  always  buy  your  favorite  brand  of  ice  cream  creams  (Rate  on  a  scale  of  1   to  10,  1  being  never  and  10  being  always)    1   2   3   4   5   6   7   8   9   10                           30. Do  you  mind  spending  a  little  extra  for  your  preferred  brand  of  ice  cream  (Rate   on  a  scale  of  1  to  10,  1  being  strongly  mind  and  10  not  at  all)    1   2   3   4   5   6   7   8   9   10                               Page 36 of 38
  • 37. 9.2. Raw  Data  The  responses  of  the  survey  are  entered  in  the  embedded  excel  sheet  (below).   Raw data.xlsx                                                                           Page 37 of 38
  • 38. 10. References  Euromonitor.  (2011).  Euromonitor  International  :  Industry  Overview.  Singapore:  Euromonitor  International.  NPD.  (2012).  Industry  Expertise  -­‐  Fashion.  From  NPD  Group:  https://www.npd.com/wps/portal/npd/us/industryexpertise/fashion/    Department  of  Statistics  of  Singapore.  (2011).  Singstat.com.  From  Census  2010:  http://www.singstat.gov.sg/pubn/reference/sif2012.pdf  Euromonitor.  (2012).  Apparel  in  Singapore.  Singapore:  Euromonitor  International.  www.infopedia.nl.sg.  (n.d.).  From  http://infopedia.nl.sg/articles/SIP_1475_2009-­‐02-­‐26.html    Euromonitor  International.  (2009).  Demand  for  ice  cream  overpowers  recession  .  Euromonitor  International.  Euromonitor  International.  (2010).  Ice  cream  in  the  Middle  East  and  Africa  -­‐  demand  grows  in  the  face  of  uncertainty  .  Euromonitor  International.  Euromonitor  International.  (2012).  CONSUMER  FOODSERVICE  IN  THE  UNITED  ARAB  EMIRATES  .  Euromonitor  International.           Page 38 of 38