Target market of an ice cream manufacturer

Assume you are a manage of an ice cream manufacturing business. Analyse how you might use different types of market research to determine customer reaction to a new kind of ice cream.




How to market to mothers

Babies are big business. Market research analyst IBISWorld estimated in November last year that revenue from baby products would reach $4.38 billion in 2011-12. It predicts average growth of 3.1 per cent a year for the next five years, with revenue reaching nearly $5.1 billion in 2016-17.

“Cashed-up parents have been buying up big for their newborns, with only the best in mind,” IBISWorld reports. When it comes to spending on their child, there are those for whom cost is not the first consideration and companies are targeting this sentiment.

“Marketers love this segment because it is one of the very few times you get an adult coming into a brand new category,” University of NSW Australian School of Business lecturer Dean Wilkie says.

“This is almost like a totally new situation and so as marketers you go, ‘Well this is an opportunity to get our brand and our product in front of this totally new audience’.”

That means brands have a “first user” type benefit, Wilkie says.

Marketers can go to a number of places to target parents and new parents to be. One of those is social media. eMarketer, which publishes information on media, digital marketing and commerce, forecasts that in the United States this year, nearly 28 million mothers will be using social networks.

Using this information what opportunities arise from this?

Ecommerce company CatchOfTheDay group is planning to launch a new website – – this month aimed at mothers.

Marketing issue

Colonel Burger, a fast food chain that has established itself in Tasmania, wants to launch a new hamburger called the ‘McGorgeous’ into the wider market, on the mainland of Australia.  A marketing research report from the US states that:

“… advertising to kids has been the defining of a “tween” market (ages 8 to 12)….  And marketers are discovering there’s lots of money to be made by treating tweens like teenagers…Of the reported US$ 51 billion spent by tweens themselves, an additional $170 billion was spent by parents and family members directly for them….They know the battles parent s have with their children trained in the art of ‘pester power’…. Marketing companies have devised advertising campaigns to give children more reasons to pester their parents.”

Colonel Burger wants to use this new research and has found that Facebook is a useful tool to communicate directly with their younger customers.

1. Having determined their position in the target market, what other aspects of the marketing mix does the manager need to consider in launching the ‘McGorgeous’ burger?

2.  The Parents and Friends Association of Tasmania has announced that it considers it to be unsuitable for 8 to 12 year olds to be targeted in such a direct manner especially given the marketing is directed totally towards children during children TV viewing times.  The Australian Medical Association (AMA) has also stressed the importance of exercise and healthy foods for our children.

Discuss ways in which the marketing manager could respond and still establish a new burger and to maintain the company’s position in the fast food market.  In your response, also discuss the ethical and social responsibilities of the business owners.