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Competing With Fierce Competition, By Adding Value To Building Brand Recognition
York Ice Cream Case Study Analysis
Paulina Jaswiec
Channel Management - MBA 528

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CONTENTS
Table of Contents
1. External Environment...........................................................................................2
1.1 Current Environment ..............................................................................................................................3
1.2 Societal Trends ...........................................................................................................................................3
1.3 Market Trends..............................................................................................................................................4
2. Business Environment ..........................................................................................4
2.1 New Business Model ...............................................................................................................................4
2.2 Marketing- Creating Demand.........................................................................................................5
2.3 Engaging The Customer......................................................................................................................5
3. York Strategy .......................................................................................................5
3.2. Novelty Segment.........................................................................................................................................5
3.3. Franchise Options.......................................................................................................................................6
3.4. Further Key Ideas.........................................................................................................................................6
1. External Environment

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1.1 Current Environment
The ice cream market is a fiercely competitive, due to the following reasons; its
divided into several sub-groups making channel marketing harder, well
established companies have channel dominance due to long standing
relationship history, dominate companies have marketing power fueled by
capital, the new emerging markets made up of small companies with innovative
ideas- ‘microbreweries of ice cream’, culture norms changing to a ‘skinny
society’ where people forgo all pleasure food to stay thin. (Mckinsey, 2010)
1. Sub-Group Segments: Premium (top ingredients with exclusive flavors &
and expensive ingredients), Quality (quality ingredients with limited
flavors), Normal (follow regulations), and Economical (artificial flavor
with cheap price tag- sometimes sold in bulk to keep price down). Then
the categories are further subdivided into: reduced fat, light fat, low fat,
non-fat. And finally divided into: how its packaged, if its novelty, how is it
distributed, and offered through what channels. (IDFA, 2014)
2. Channel Dominants: Top channel control pushes companies to create
partnership with the channel or the company itself. Merger or acquisition
may also be the only channel into this segment. Forming a blue ocean
strategy, by exploiting your digital customer is a new avenue that is
currently underestimated, and undeveloped.
3. Market Power: Capital enables these companies to out market by shear
volume, or paying for effective but expensive marketing that others cant
afford. They can pay for R&D, (health) studies, and donations to
prominent charities or organization (cardiac, weight loss, and obesity
treatment centers).
4. Emerging Markets: When looking globally at all emerging markets they
makeup of half of global revenue (Mckinsey, 2010)
5. New Standards: the new business model is not only going green, or
toward a heath conscious society, but also focusing on value.
1.2 Societal Trends
1. Going Green: packaging and processes
2. On- The- Go: pre packed portions
3. Rise of Internet: digital Consumer
4. Value Oriented Customer: Segment is on rise
5. Health and Wellness: obesity concerns and prevention plans for society
6. Demographics: again population, gamers, generation X, children
(seeking parent approvals)

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1.3 Market Trends
1. BFY (better for you) Concepts: combination fruit & vegetables, nutrient
rich (minerals, vitamin), bone growth (calcium) (Beckett, 2014)
2. Fat and Sugar Controlled: no added sugar, low calorie count, reduced
fat, low fat, light fat, non-fat,
3. Attention To Allergies: dairy free, tofu, soy, gluten free, preservative free,
dye free, artificially flavor free
4. Urban: frozen custards
5. Targeting Non-Conservatives: population of non-conformists. Ben & Jerry
ice cream example: Hazed & Confused, Half Baked, Karamel Sutra,
Wayne’ Swirled, Everything but the…
6. Combinations: Root beer float, Apple a la mode, ice cream cake
7. Product Into Calendar: plan on eating product, the same way plan you
schedule activities (ice cream Sunday)
8. Company differentiation: by offering endless flavors (Baskin Robins- 1,000
flavors), on premise creation with custom toppings (Cold Stone),
revolutionized consistency of ice cream (Dippin Dotts- small beads),
selling three top flavors all in one package (Napoleon- chocolate,
strawberry, vanilla), swirling flavors (Twist Machine), and many more.
2. Business Environment
2.1 New Business Model
The Greek philosopher, Heraclitus stated, “there is nothing permanent except
change.” Little did he know that twenty-five hundred years later, it would be the
exact business model for year 2015. Currently companies are adapting this idea
of constant change in order to stay ahead and current in the market. The ice
cream industry is no different. Currently we see grocery stores selecting products
based on demands of evolving consumer desires or needs. By offering unique
items satisfies this demand. An example of this strategy is in Arizona where it’s
always hot, Safeway’s saw an opportunity with the yogurt segment and
developed a plan to have Yoplait create frozen yogurt for kids. This
revolutionized the way people consumed yogurts, by offering a cold healthy
snack, that can be taken on-the-go, easy to store, handle and eat, especially
targeting busy moms with conscious dietary standards. Overall bottom line is
satisfied (boosted margins), all while maintain the same channel. (Graham,
2011).

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2.2 Marketing- Creating Demand
When it comes to the ice cream segment, advertising has not been proven to
have major affects on decision making when purchasing. The buyer must be
Influencing by a different approached, one that entices communication by
engaging and involving, rather than dictating to. York Ice Cream Company must
take this knowledge and create a way to make their communication strategy
more engaging.
2.3 Engaging The Customer
Ideas: visually show, teach, and give hands on experience
1. In Store: visual presentation, events
2. Drive Through Experience: ideas could be still fully shared
3. Empower Customers- ‘Creator Events’: winner is selected and becomes
maker of the day seeing entire process, followed by information being
put in newsletter
4. Science Experiment Day: liquid nitrogen explosion
5. Internal Classes: ‘make your own’- fudge, ice cream (date night/
desert/ cooking classes)
6. Holiday Loyalty Program: rewards card, coupons, holiday extras
3. York Strategy
3.1. Co-Branding
Pros
1. This will create new possibilities/ opportunities by the union of strong allies,
which will then facilitate an effective growth strategy.
2. Create momentum, followed by brand awareness
3. Share overhead costs, reduce costs
4. Pass down loyal customer base
5. Internal talents are shared
Cons
1. Possible negative in co-branding, misalliance, and brand liability
3.2. Novelty Segment

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Novelty was a popular segment until all the unique sub companies came out
with better ways to connect to customers. Some novelty ice creams still
dominate due to good packaging, and price. In a world of shoppers looking for
convenience, simplicity and calorie intake, novelty is still a great industry to be a
part of. Single portion help control portions, making this handheld item an
advantage, but the product must be strategically thought out. Currently half of
ice cream sales are packaged in one form or another. Grocery stores offer
mostly ice cream that is in high fat content, opening a door to healthier options if
packaged right. (Reference for business, 2015)
3.3. Franchise Options
Pros
1. Marketing support
2. Speed to market
3. Fast ROI
Cons
1. Less control- quality, reputation
2. Risk- less control over profit
3. Future location wars- settle over
As in all of life, the greater the risk, the greater the return on investment. I believe
the York Company should Franchise. In addition regional or demographic
characteristics play a role in demand for ice cream product, by franchising you
are able to address those needs
3.4. Further Key Ideas
New ideas in demand and worth looking into:
1. Non Pasteurized: non-pasteurized cheese are currently in demand
2. Real Sugar: sugar cane/ honey
3. Artisan Mixture of Ingredients: Chocolate + Bacon Ice Cream
4. Culture Inspired: international flavors using spices, fruits, and receipts
5. Alcoholic: alcohol infused, or served over ice cream and lite up
6. Heath Concerns: Coconut water targeted consumers were introduced to
coconut water ice cream lollies
7. Powerful Logan: Klondike Bar was the best seller the novelty segment, with
a simple yet powerful slogan
References

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Beckett, A. (July 17, 2014). What’s Your Flavor-Global Ice Cream Trends. Retrieved on
March 18, 2015, from: http://www.mintel.com/blog/food-market-
news/whats-your-flavour-essential-2014-global-ice-cream-trends
IDFA. (2012). Interaction Dairy Food Association: Making a Difference for Dairy- Ice
Cream Segment. Retrieved March 18, 2015, from: http://www.idfa.org
/news-views/media-kits/ice-cream
McKinsey & Group. (2010). Consumer Package Goods Practice. Retrieved March 18,
2015, from, www.mckinsey.com/clientservice/consumerpackagedgoods
Reference for Business. (2015). SIC 2014: Ice Cream and Frozen Deserts. Retrieved March
18, 2015, from, Encyclopedia of Business 2nd Edition, http://www.reference
forbusiness.com/industries/Food-Kindred-Products/Ice-Cream-Frozen-
Desserts.html