Soft Drink Industry
Executive Summary The word 'Saturation' does not exist in the dictionary of
the U.A.E. Year by year, new products and their competing items have entered
into the field and have successfully created a slot for themselves. This
phenomenon is greatly supported by the open down policy of the local government
to the people coming from other lands for settlement and tourism. Ice creams are
a product that has not seen their prime in the U.A.E. It's potential is tapped
in a meager form. Not that the commodity is in short supply. There is ample
ice-cream available even at the moment. But, there is great scope of
habitualizing the inhabitants of this place to consume more of the product, by
exploiting the U.A.E. climate to its best potential. This statement vindicates
the statistics that while an average person in Australia consumes 36.87 pints of
ice cream, and in the United States 30.04 pints, the consumption in U.A.E. is
only 6 pints per capita. Thus, even if the consumption is increased by 6 times
for a person here, we will still be comparable to Australia and will need more
effort to become world leader in consumption. This indicates the amount of
vacuum existing in the U.A.E for the growth in the Ice-cream consumption. The
bottom line is a 'Difference'. Up until now the ice creams that are being sold
in the U.A.E. are mostly the conventional stuff and it will bring a sea change
in the minds of consumers about ice creams if they are given something different
at affordable prices and at accessible locations. One such company that can meet
all these interests is Ben & Jerry's. We are a group of investors now planning
to open Ben & Jerry's ice cream parlor. The food and beverage industry has been
in a boom.
Therefore we plan to make our mark in the industry as the premium ice
cream and yoghurt parlor in the country. U.A.E has a multi-cultural environment
thus providing a good market for Ben&Jerry's.. Ben&Jerry's is the 'difference'
which can fit in the slot to help bring up the per capita consumption of the
country. Most of their ice creams are made from fresh fruits, which hardly any
other maker has attempted. Introduction & Background The company Ben & Jerry's
had its humble beginning more than 70 years ago, when its founders started
manufacturing ice cream with a hand - cranked machine. Today, it offers the
widest range of ice creams and frozen deserts in packs, including cups, bulks,
and cones. The brand enjoys its reputation for successful innovation and
development of flavors and its new offerings are eagerly awaited every summer.
Current Market Situation The Marketing Environment- The United Arab Emirates has
an ice cream market of Dh140 million, yet it has one of the lowest consumption
(6.00 per capita/ pints) of ice-cream when compared to Australia which consumes
36.87 per capita / pints and USA 30.04 pints. The ice-cream parlors Baskin
Robbins enjoys having a monopoly followed by Haagen-Dazsas and Breslers. There
are other non-famous parlors in some shopping centers and malls. Considering
that there is two major franchises in the U.A.E market there is a high scope in
entering the ice-cream industry. As for the external environment, it is divided
in the following manner. Competitive Environment- There is high degree of
competition in the foodstuff industry. In the ice-cream industry, the market
share is evenly distributed with Nestle being the market leader, followed by
Walls and then by Kwality. Recenlty Hag n' Das has also come up with major
marketing schemes and are aggressively marketing their ice creams.
