Unit 2 Classwork
Unit 2 Classwork
-Market Trends
-Size of the market
-Growth and Revenue of the Market
-Which are the best selling products
-Market Structure
-Provides insights into potential customers and your competition
Customer Analysis:-
-Who are your segments in your market
-Demographics
-Income
-Life Style Choices
Competitor Analysis:-
-Who are your Competitor?
-Products the competitors are selling
-How are they different
The UAE ice cream market is led by impulse ice cream – single serve in terms of value sold,
and take-home and bulk ice cream is the leading category in terms of volume sold.
Convenience stores are the leading distribution channel in the UAE ice cream sector iv.
Some of the key players in the UAE ice cream market include Desert Chill, Dunkin' Brands
Group, Inc., General Mills Inc., IFFCO Group, MARS Incorporated, MINI Melts Inc., Nestlé
S.A., Pure Ice Cream Co. LLC., and Unileverv.
Customer Analysis of the UAE Ice Cream Market
- The ice cream market in the UAE is a growing industry with various factors driving its
consumption and purchase. Customers these days want to switch to healthier options.
The market also offers opportunities for companies to tap into the growing preference for
natural, less processed, and convenient food, and to introduce new varieties and flavors.
The key segments in the UAE ice cream market include impulse ice cream, take-home ice
cream, and artisanal ice creamvi. The market is dominated by impulse ice cream, followed by
take-home and bulk ice creamvii. Rising consumer preference for natural, less processed, and
convenient food, and increasing focus on low-calorie ice creams are enabling companies to
tap into the marketviii. Furthermore, there is a growing demand for gluten- and lactose-free
ice creamsix. Specialist stores are dominating the UAE ice cream market, selling their
products at premium prices while providing higher service quality and expert advice.
1. Growing demand for natural, less processed, and convenient food: Consumers are
increasingly preferring ice cream products that are made with natural ingredients and have a
healthier profilexii.
2. Increasing focus on low-calorie ice creams: As health consciousness grows, there is a rising
demand for low-calorie ice cream products.
3. Rising consumer spending on take-home and impulse products: The growth of the tourism
sector and restaurant businesses is expected to support the growth of the UAE ice cream
market.
4. Growing demand for gluten- and lactose-free ice creams: Specialist stores are dominating
the UAE ice cream market, selling their products at premium prices while providing higher
service quality and expert advice.
5. Rising consumer preference for organic ice-cream products: Some ice cream
manufacturers are focusing on developing new flavors using organic ingredients to cater to
the growing demand for healthier ice cream options.
Market Research on Price for the UAE Ice Cream Market
-In terms of pricing, the UAE ice cream market is expected to grow at a CAGR of 5.5% during
the forecast period 2019-2027, reaching US$ 191.3 Mn by 2027 xiii. The market is expected to
grow amid the entry of multinational ice-cream companiesxiv. The ice cream market in the
UAE is experiencing significant growth and evolving consumer preferences.
The pricing strategies for UAE's ice cream competitors are influenced by various factors such
as cultural diversity, consumer preferences, and market trends. The UAE's warm climate and
multicultural demographics contribute to the demand for ice cream, leading to the adoption
of different pricing strategies.xv Additionally, factors such as the demand for products that
cater to diverse flavor preferences and the emphasis on offering high-quality, creative, and
locally inspired ice cream options enhance the industry's growth potential especially if the
market starts to increase the prices charged. Furthermore, the UAE's ice cream market is
also influenced by the government's efforts to develop e-commerce platforms and the
launch of innovative ice cream flavors to cater to diverse demandxvi. These factors, combined
with the nation's passion for frozen treats, drive continued expansion and opportunity
within the UAE's ice cream market.
The pricing strategies in the UAE's ice cream market are likely to be diverse, taking into
account the various factors influencing consumer behavior and market dynamics. For
example, some competitors may focus on offering premium ingredients and artisanal
craftsmanship, which could be reflected in higher pricing, while others may adopt
competitive pricing strategies to cater to a wider customer base. Additionally, the influence
of e-commerce platforms and the offline market on pricing strategies is also a relevant
aspect to considerxvii.
In conclusion, the pricing strategies for UAE's ice cream competitors are shaped by the
unique market dynamics, consumer preferences, and the influence of factors such as
cultural diversity, government initiatives, and the growing demand for innovative ice cream
flavors, The broader market trends and factors provide valuable insights into the pricing
landscape of the UAE's ice cream marketxviii.
1. Leverage Consumer Engagement and Branding: Engage consumers through social media,
interactive campaigns, and brand experiences to build a loyal customer base.
2. Host Public Events: Organize ice cream parties, tastings, or other public events to increase
brand visibility and attract potential customers.
3. Utilize Market Segmentation: Tailor promotional activities based on market segmentation,
such as impulse ice cream, take-home ice cream, and artisanal ice cream, to effectively reach
different consumer groups.
These strategies can help ice cream companies in the UAE differentiate themselves and
attract customers in a competitive market. Additionally, companies can use market research
to gain a better perspective and knowledge of the target market, identify areas for
improvement, and benchmark themselves against competitorsxx. Companies can also take an
open-minded attitude in light of the competitive landscape and utilize objective insights
provided by market research to identify their strengths and weaknessesxxi. Finally, companies
can host public events and parties to promote their brand and products xxii.
Strengths
1. Unique Flavors and Products: The new business can introduce unique and innovative
flavors to cater to the diverse consumer preferences in the UAE market.
2. Growing Demand: The UAE ice cream market is expected to grow, presenting an
opportunity for the new business to capture a larger market share.
3. Health-Conscious Consumers: There is a rising demand for low-fat and non-dairy ice cream
products, which the new business can capitalize on.
4. Quality Ingredients: Using high-quality ingredients and natural flavors can be a strength
for the new business, appealing to consumers who prioritize quality and taste.
5. Brand Identity: Establishing a strong brand identity through creative marketing and
branding strategies can help the new business differentiate itself from competitors and
attract customers.
Weaknesses
1. Competition: The market is highly competitive with the presence of established local and
international ice cream brands, posing a challenge for a new entrant.
2. Distribution Challenges: Establishing an efficient distribution network across
supermarkets, convenience stores, and specialty stores can be a potential weakness for a
new business.
3. Limited Resources: Limited financial and human resources can be a potential weakness for
the new business, hindering its ability to compete with established brands.
4. Seasonal Demand: The demand for ice cream products in the UAE is seasonal, with lower
sales during the winter months, which can impact the new business's revenue.
Opportunities
1. Market Growth: The market is projected to grow, providing an opportunity for the new
business to capture a larger consumer base and expand its market presence.
2. Health-Conscious Trends: The increasing demand for healthier ice cream options presents
an opportunity for the new business to introduce and promote its low-fat and non-dairy
products.
3. Online Sales: The new business can leverage e-commerce platforms and social media to
reach a wider audience and increase sales.
4. Export Potential: The UAE is a hub for international trade, and the new business can
explore export opportunities to other countries in the region.
Threats
1. Regulatory Environment: Adherence to local regulations and standards for food and
beverage businesses in the UAE can pose a threat to the new business.
2. Economic Factors: Fluctuations in the economy and consumer spending patterns can
impact the demand for premium ice cream products, posing a threat to the new business.
3. Changing Consumer Preferences: Rapidly changing consumer preferences and trends can
pose a threat to the new business, requiring it to adapt and innovate to stay relevant.
4. Supply Chain Disruptions: Disruptions in the supply chain due to factors such as weather
conditions, transportation issues, or political instability can impact the new business's
operations and revenue.
PESTLE Analysis on my business [Sweet Freeze] entering the UAE Ice Cream Market
The PESTLE analysis includes the Political, Economical, Social, Technological, Legal,
Environmental.
- Political: This factor involves government stability, taxation policies[One taxation policy for
the ice cream business in the UAE is the sugar tax. The UAE government has adopted a
decision to expand the list of taxable products to include sweetened products, including
sugary drinks], and trade regulations. For the UAE, it's important to consider the
government's support for the food industry and any specific regulations related to the
import or production of ice cream.
- Economic: This includes the local and global economic conditions, exchange rates, and
even inflation. In the United Arab Emirates (UAE), assessing the country's economic stability
and its impact on the ice cream market involves considering various factors. The IMF staff's
recent visit to the UAE highlighted strong economic growth driven by robust domestic
activity, high fiscal and external surpluses due to high oil prices, and an expected average
inflation rate of around 3% in 2023xxiii. Over the last decade, the UAE has recorded an
average annual real GDP growth of 3.3% and an average inflation rate of 1.5%xxiv. Therefore,
to assess the impact of economic fluctuations on the ice cream market in the UAE, it is
important to monitor factors such as economic growth, inflation, and the country's reliance
on oil and gas, which can affect consumer purchasing power and overall market conditions.
- Social: In the UAE, understanding the local preferences for ice cream flavors, consumption
habits, and cultural factors is crucial for the ice cream industry. The United Arab Emirates
(UAE) has a growing preference for natural, less processed, and convenient food, including
ice cream, and an increasing focus on low-calorie and non-dairy ice creamsxxv. The high
disposable income and the increasing number of tourists have led to a rise in the demand for
ice cream, with a wide range of options available due to the presence of international
brandsxxvi. Additionally, unique and diverse flavors, such as camel milk, are also gaining
popularity in the regionxxvii. Factors such as the preference for natural and low-calorie
options, the influence of tourism, and the demand for unique flavors are the main social
features to consider.
- Legal: In the UAE, food businesses, including those involved in ice cream production and
sale, must comply with Federal Law No. 10 of 2015 on Food Safetyxxxi. This law covers
registration, labeling, compliance procedures, and enforcement measures to ensure the
safety and compliance of foodxxxii. It is important to understand the regulations related to
import, export, and re-export of food products, as well as the potential penalties for non-
compliance. By adhering to these legal requirements, businesses can contribute to
safeguarding consumer health and well-beingxxxiii.
- Environmental: The environmental impact of the ice cream industry, including climate
change, sustainability, and waste management, is a growing concern globally. In the UAE,
there is a need to assess the environmental sustainability of ice cream production and
specific environmental regulations that could affect the industryxxxiv. The production of ice
cream is associated with various environmental impacts, including the cultivation of raw
materials and the significant climate impact of its productionxxxv. Additionally, there is a
growing trend towards sustainable ice cream production, with some businesses in the
Middle East striving to protect the environment through measures such as zero-waste
practices and the use of renewable energy. Furthermore, there are examples of carbon-
neutral ice cream production laboratories in the region, indicating a shift towards more
environmentally friendly practices in the industryxxxvi.
-Product:
The product mix for "Sweet Freeze," my new ice cream business that is entering the UAE
market, has a diverse range of ice cream flavors and accompanying products to cater to a
broad customer base. This includes traditional ice cream flavors, as well as options for
customers with specific dietary preferences, such as plant-based or low-sugar ice creams.
Our Business Additionally, the business should consider offering original items and unique
experiences, especially because we are situated in a tourist-heavy area, to attract and retain
customers. Furthermore, the use of high-quality ingredients is essential to ensure the
production of premium and super-premium ice cream products, which are in high demand.
By incorporating these elements, Sweet Freeze can position itself competitively in the
dynamic ice cream market.
-Price:
Since our products are currently in the growth stage, a suitable pricing strategy for ice cream
would involve setting competitive prices so that we can maximize market share. This stage is
characterized by growing sales and increasing competition, so investment in product and
place is essential to capture a larger market share. Considering the increasing consumer
demand and advancements in technology in the ice-cream market, it's important to monitor
changing price patterns and the supply chain of raw materials to ensure a competitive
pricing strategy. Furthermore, it's essential to consider the demand, market conditions, and
competition when determining the pricing strategy for ice cream. A good pricing strategy for
our ice cream in the growth stage of the PLC should focus on maximizing market share
through competitive pricing, extensive advertising, and sales promotion, while also
considering changing market dynamics and consumer demand. The price at which our ice
cream will be sold is at AED 12 per scoop of ice cream for the base flavours, AED 16 per
scoop of ice cream for the base flavors with a twist, AED 25 for our premium flavour choices
and AED 32 for our Super Premium flavors to show the premium feel of our products. This
way we cater to the needs for many target individuals from lower class to the upper class.
-Place:
In the growth stage of the Product Life Cycle (PLC), a good place strategy for ice cream
would involve expanding distribution channels to reach a wider customer base. This could
include increasing presence in hypermarkets, supermarkets, convenience stores, retailers,
and specialty stores, as these are the key application areas for ice cream products.
Additionally, investing in digital channels for our brand awareness and marketing, such as
social media and influencer marketing, can help reach target audiences, especially
millennials and health-conscious consumers. Furthermore, conducting thorough market
research to identify potential locations for new ice cream shops and considering target
audience, foot traffic, and competition in each area would be essential for successful
expansion. By adopting these strategies, our business can capitalize on the sustained growth
expected in the coming years and leverage the increasing demand for our unique ice creams.
-Promotion:
To promote Sweet Freeze entering the UAE market, several strategies can be employed.
1. Social Media Marketing: Utilize platforms like Instagram and Facebook to showcase
visually appealing content and engage with potential customers.
3. Tastings and Events: Host or participate in local events, food festivals, or markets to offer
free samples and engage directly with the target audience.
4. Loyalty Programs and Discounts: Implementing a loyalty program or offering discounts for
repeat customers can help build a loyal customer base.
5. Partnerships with Local Businesses: Collaborate with local cafes, restaurants, or hotels to
feature your ice cream, potentially through co-branded products or special menu items.
6. Traditional Advertising: Consider traditional advertising methods such as local print media,
radio, or outdoor advertising.
-Process:
Easy to use the app
How the customer experiences
How you collect feedback
Time you take to serve your customers (waiting time)
In the UAE market, the process mix for my Ice cream business, Sweet Freeze, involves the
use of liquid nitrogen in the freezing process as it is a unique and innovative approach that
has gained popularity in the market. It offers a theater-like experience for customers, as the
white smoke from the liquid nitrogen adds to the visual appeal of the preparation process.
In summary, for an ice cream business like Sweet Freeze in the UAE market, leveraging
innovative freezing methods, offering a diverse range of flavors, and considering the
potential for fortified or functional ice cream products can be key elements of a successful
process mix strategy.
-People:
What your customers see when they enter the store
How the employees behave
Song playing in the background
In the growth stage of the Product Life Cycle (PLC), a good people strategy for the ice cream
industry would involve focusing on innovation, talent acquisition, and market expansion. As
the global ice cream market is projected to experience significant growth, companies should
invest in the development of new products and flavors to meet increasing consumer
demand and stay ahead of competitors. Additionally, recruiting and retaining top talent in
areas such as research and development, marketing, and sales will be crucial for driving
innovation and maintaining a competitive edge in the market. Furthermore, expanding into
new regions and channels, such as e-commerce, can help capitalize on the growing demand
for ice cream and create strategic opportunities for business growth.
-Physical Evidence:
Aesthetic of the shop (lighting decor seating)
-How does the Product that I developed meet the needs of my target audience:
Planning
Research
Design
Implementation
Follow Up
i
https://www.theinsightpartners.com/reports/uae-ice-cream-market
ii
https://www.researchandmarkets.com/reports/4876914/uae-ice-cream-market-to-2027-country-analysis
iii
https://www.mordorintelligence.com/industry-reports/africa-ice-cream-market/market-trends
iv
https://www.globaldata.com/store/report/uae-ice-cream-market-analysis/
v
https://www.businessmarketinsights.com/reports/uae-ice-cream-market
vi
https://www.globaldata.com/store/report/uae-ice-cream-market-analysis/
vii
https://www.globaldata.com/store/report/uae-ice-cream-market-analysis/
viii
https://www.mordorintelligence.com/industry-reports/africa-ice-cream-market/market-trends
ix
https://www.businessmarketinsights.com/reports/uae-ice-cream-market
x
https://www.globaldata.com/store/report/uae-ice-cream-market-analysis/
xi
https://www.researchandmarkets.com/reports/4876914/uae-ice-cream-market-to-2027-country-analysis
xii
https://www.mordorintelligence.com/industry-reports/africa-ice-cream-market/market-trends
xiii
https://www.researchandmarkets.com/reports/4876914/uae-ice-cream-market-to-2027-country-analysis
xiv
https://www.businessmarketinsights.com/reports/uae-ice-cream-market
xv
https://www.openpr.com/news/3296262/uae-ice-cream-market-size-share-key-players-growth-analysis
xvi
https://www.marknteladvisors.com/research-library/gcc-ice-cream-market.html
xvii
https://www.mordorintelligence.com/industry-reports/uae-foodservice-market
xviii
https://www.kenresearch.com/industry-reports/uae-cafe-and-coffee-chain-market
xix
https://www.linkedin.com/pulse/marketing-promotion-strategies-ice-cream-frozen-desserts-happy-hour
xx
https://www.taiwannews.com.tw/en/news/5075538
xxi
https://www.linkedin.com/pulse/overview-uae-ice-cream-market-share-size-2028-yogiraj-sonawane-
yogi--pmjkc?trk=article-ssr-frontend-pulse_more-articles_related-content-card
xxii
xxiii
https://www.imf.org/en/News/Articles/2023/10/13/pr23351-uae-imf-staff-concludes-visit
xxiv
https://bsc.hks.harvard.edu/2023/11/14/rapid-inflation-and-its-implication-in-the-uae/
xxv
https://www.mordorintelligence.com/industry-reports/africa-ice-cream-market/market-trends
xxvi
https://datavagyanik.com/reports/middle-east-ice-creams-market/
xxvii
https://www.thenationalnews.com/lifestyle/food/2021/07/18/international-ice-cream-day-13-places-
to-find-unique-flavours-in-the-uae/
xxviii
https://www.linkedin.com/pulse/ice-cream-market-trends-2023-2030-123
xxix
https://www.theinsightpartners.com/reports/uae-ice-cream-market
xxx
https://atsuyatech.com/blogs/iot-your-secret-ingredient-to-quality-ice-creams/
xxxi
https://www.legal500.com/developments/thought-leadership/what-are-the-consequences-and-fines-
for-food-hygiene-violations-in-the-uae/
xxxii
https://www.moccae.gov.ae/en/knowledge-and-statistics/food-safety.aspx
xxxiii
https://www.ecolex.org/details/legislation/federal-law-no10-of-2015-on-food-safety-lex-faoc166086/
xxxiv
https://livehealthymag.com/sustainable-middle-east-7-brands-that-are-working-to-protect-the-planet/
xxxv
https://www.hsbc.ae/wealth/insights/esg/why-esg-matters/2023-08-03/
xxxvi
https://horeca-online.com/gelato-increasingly-sustainable/
xxxvii
https://openstax.org/books/principles-marketing/pages/9-4-marketing-strategies-at-each-stage-of-the-product-
life-cycle
xxxviii
https://www.linkedin.com/pulse/strategies-mitigating-decline-big-brands-jordan-bean
xxxix
https://www.business.com/articles/how-to-combat-declines-in-sales/