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Marketing Plan for Gelato Essay

Custom Student Mr. Teacher ENG 1001-04 20 July 2016

Marketing Plan for Gelato

Executive Summary

As the amelioration of living standard, the requirement in quality of life also improved. Accordingly, people do not only satisfy their basic needs, but also seek for a sense of relish. The notice of this Epicureanism enhances the idea of commencing GELATO.

GELATO will be the leading ice cream manufacturer and wholesaler in territory 30. GELATO will produce three products for three different segments; family, gourmet and lifestyle. Each product will have different tastes, cream content, packaging…etc. Each of these features will be further discussed in this marketing plan.

Ice cream is a seasonal product, due to this seasonal impact, GELATO’s marketing mix; the 4Ps (Product, Promotion, Price and Place) will change in different seasons. In general speaking, summer (period 7-9) is our peak season of sales while the others are off peak season.

During the peak season, GELATO’s product will change in terms of flavour, scheduled production, packaging and cream content; there will be detailed information in the product part of this marketing plan.

In promotion, the sales team size and promotion budget of each segment will change in the peak season, more salesperson and greater promotion budget will be used during the peak season, also different promotion campaign will be used.

The third one is Price; the prices of 3 products are not the same, different segments have different purchasing power, for example, family has a relatively low purchasing power when compared to the other two segments (Gourmet and Lifestyle), so the price set for family segment is the lowest.

Lastly, Place, in this case is how and where we sell our ice cream. There are two distribution channels, supermarket and specialty stores. In different seasons, the portion of products sells in these two channels will vary as to maximize the number of sales. It will be further discussed in the later part of this plan.

Target Market

The target market of GELATO is separated into three main market segments, which are:

Ø Family: adults and kids make up this segment; they demand good value for money.

Ø Gourmet: young single/couples with no kids, ice-cream is about ego.

Ø Lifestyle: older people and younger women, they are watching their diet for one reason or another.

Each of these segments has 3 segment varieties, which can have quite different characteristics, different consumption patterns and different product preferences.

The family segment

Demographics: adults and kids

male and female

single and couple

Geographic: the company is operating in Territory 30

Behaviours: ice-cream would satisfy consumer’s physiological needs and personal needs in this segment.

At the beginning, about 60% of total potential sales are from customers in this segment. Consumers in this segment prefer products that offer value for money, but don’t mind paying a bit more provided the quality is good. However, if the prices get too high, they will quickly move to alternative brands. So the consumers in this segment have strong preferences for lower priced brands of the same or similar quality.

Also, consumers in this segment purchase ice-cream for other members of their household including partners and children. This affects these consumers’ decisions regarding package size. Furthermore, children in this segment may have the main impact on the food purchasing behaviours, and children’s need is also the major factor in determining brand selection in a number of product categories. So the promotion campaign and package in this segment may forces on children’s flavours.

The gourmet segment

Demographics: between 25 and 40 years old

male and female

double income

single with no children

Geographic: the company is operating in Territory 30

Behaviours: ice-cream would satisfy consumer’s personal needs in this segment.

At the beginning of the simulation, only 10% of total potential sales are from this segment. That means there are few consumers in this segment actually buy ice-cream, those that do are probably quite dissatisfied with what is available. So the company has considerable opportunity to grow actual market size by introducing products that meet this segment’s need.

The gourmet segment is very different from the family segment. They are young, and generally have no children, so they have a strong preference for high quality products and are quite happy to pay premium prices for brand that can deliver this. This segment is most attracted to status products and is more likely to be influences by appeals to their ego rather than basic needs.

So the prices in this segment can set in the premium range prices, the promotion campaign and the packaging would more likely to be fashion and feel younger to satisfy young people’s higher level of needs.

The lifestyle segment

Demographics: over 55 years old, as well as small group of women aged between 25 and 45

male and female

restricted income

old couple living without children

Geographic: the company is operating in Territory 30

Behaviours: ice-cream would satisfy consumer’s personal needs in this segment.

At the beginning, this market segment represents about 30% of the total potential sales. In the current years, there are few ice-cream produces on the markets that are designed for this segment, because of there are increasing group of consumer in this segment are more concerned and aware of the implications of diet on their health. Most of there consumers do not buy ice=cream as a consequence, such as they thought ice-cream have high calories and not good for health.

The majority of this segment is in the empty nest stage of the lifestyle, children having grown up and left home. So when this subgroup buys ice-cream it is for them, not their children. This segment is most concerned about the actual product and in particular the fat and sugar content. They want a product that is satisfying but with reduced negative health impacts when compared to standard ice-cream.

So the products to satisfy this type of people must be low cream content. Also the promotion campaign and packaging need to make them feel health, and let them to believe that ice-cream is not that bad for health.


Marketing is an opportunity to communicate a vision, foster relationships, build sales and establish an unmistakable brand identity. Success in business requires good planning and a marketing plan is a holistic business tool that defines the product, income objectives, and specific operating procedures necessary to achieve the goal of profitability.

Time period: 12 months

Measurable objective:

Our marketing plan seeks to generate a significant increase in company sales, units sales and market shares.

Retained earnings

The first mission is trying to achieve positive after tax profit at the end of the first 5 periods. At the end of financial year, the company retained earnings will be expected over $10 millions, and probably achieve target of $13 millions.

Unit Sales

In the duration of 12 months, the combination product sales unit from three segments targets at 13 millions, with expected sales revenues of $91,000,000.

· The target Unites sales and sales revenues for each segment as below

Family Gourmet Lifestyle Total

Total Units Sales 3,000,000 6,000,000 4,000,000 =13,000,000

Total revenue $21,000,000 $42,000,000 $28,000,000 =$91,000,000

Market shares

Moreover, as the higher the market shares, represents better performance of GELATO. The final object is to expend the market shares of the company, and the expectation will be increasing market share by 30% in the territory 30 in the duration of 12 months through effective marketing strategies.

Non-Measurable objective:

Moreover, GELATO also pursues to be environmental-friendly Company. GELATO pursues to be environmental-friendly by using Plastic containers, which can be reused with other purposes when consumers finished the ice-cream consumption.


The product is the physical product offered to the customer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as scheduled production, product strategy, and packaging.

Early stage stages (July to November)

In the beginning of startup operation, the only one product would launch in family segment. To begin business operation period 1 to period 3, we scheduled sufficient inventory (325,000 units) to sell in order to avoid overtime cost. However, lots of inventory was left unsold and stored in warehouse, caused over scheduling and increased expense of stocking cost. In the following period GELATO adjusted the scheduled production in family segment. Also, we launched new products to new target segments which are gourmet and lifestyle.

During period 5, lots of family segment stocks were left unsold. GELATO stopped scheduled for family segment. As launched new products to new target segment, the stocks for both segment were under scheduled resulted the appearance of overtime cost. Hence, GELATO scheduled 200,000 units which 4 times larger than prior period. Stepped into summer, peak season, GELATO scheduled total stocks of 1,650,000 for 3 segments to handle gradually increase in demand of ice-cream and satisfy customer needs. GELATO scheduled

Entering Peak Season (December to January)

Period 6 had stepped into the peak season that was the beginning of summer time. GELATO expected the sales would steadily increase demand of ice-cream; we scheduled total 1,650,000 units for 3 segments. The sufficient scheduled production reduced unnecessary operating cost, overtime cost.

In the period 7, we scheduled 2,600,000 units for the peak summer seasons. This period was the highest scheduled production in the overall periods. We scheduled the most inventory for the gourmet segment, second is lifestyle, then family segment.

Prediction for Period 8 to 12

Prediction in Peak Season (February-March)

During period 8 to 9, we predicted that the sales will still remain in the relative high region. GELATO would continue keeping scheduled production for each segment. But, the scheduled production would gradually decrease in each period.

Prediction in Off Peak Season (April-June)

Coming into off peak, the sales will gradually decrease as ice-cream is a seasonal product. In period 10, our scheduled production will reduce in each target segment. In period 11 and period 12, the planned production will remain unchanged in this low sales season.

Product Strategy

GELATO delivers market-wanted products to the target market that can be satisfy customers in a variety of dimensions, for instance, flavour, cream content, portion and portion size. To meet our target customer expectation, we continuously carry out consumer taste test research in each segment to monitor the external environment. GELATO will adjust the launch products that meet their new expectation.

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