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Carvel Ice Cream: Developing the Beijing market

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  1. Who is the target?
    1. Middle and upper class
    2. Little emperors
    3. Expatriate community
  2. What are the Products to focus on, and at which Price?
  3. What about competition?
  4. What distribution centres? (Place)
  5. What kind of communication? (Promotion)
    1. The Beijing shoppers guide
    2. Leaflet
    3. Asian Hospitality Association (AHA)
  6. Conclusion

By 1994, Carvel created a joint venture in China, ?Beijing Carvel Food Company Limited'.
In 1997, sales went over 6 million Rmb (US$ 725,000). Considering that overall economy growth rate was 8% per year between 1998 and 2000, and that inflation was negative (-1,4%), I make the assumption that in 1999 sales was about 7 million Rmb. 45% came from ice cream cakes, so in 1999 the ice cream cake sales was about 3,150,000 Rmb. This will permit adding figures to the proposed marketing program. In this case, the problem is to overpass two facts: ice cream cakes are new to most Chinese and the product comes from quite an unpopular food group. Market decisions will answer 5 questions including the 4Ps.

[...] Moreover, the level of ?overrun? should not be increased in order to keep a clear limit between Carvel and popular ice cream brands. According a ?survey conducted by the Beijing Consumer Association on ice cream markets, consumers consider taste and quality first when buying ice cream? (c.f. sources). The sales mix By studying Exhibit 2 (Retail prices in Beijing's Premium ice cream market), I make the following sales pre-vision: Little Love should account for of the cake sales mix and Piece of Cake 8%. [...]


[...] It presents the products but also retail locations through Beijing (with address and telephone). It can offer a discount coupon too. I suggest distributing 5,000 leaflets for each operation, to benefit from the unit cost ( 0.30 Rmb instead of 0.45 Rmb per sheet). I recommend to realize 5 operations (one every 10 weeks) for the year. Therefore, the total cost is 7,500 Rmb. Asian Hospitality Association In an association of about 10,000 members (mid and upper class) which sell them an annual entertainment coupon book. [...]

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