This report is designed to assist Messina in developing a product that will be sold outside of their shopfronts and distributed through external retailers and vendors. Messina are looking to uncover the most sought after product attributes and preferences in order to capture the largest market share and satisfy the most attractive market segment. Flavour, packaging, nut options, recyclable packing and low fat options were all product attributes that were tested.

Several types of analysis were used in order to gain the most appropriate insights. The first one management decided to use was a conjoint analysis to help for their product design. This process allowed management to determine the value to respondents of many different product design options that they couldn’t evaluate directly.

Next was the segmentation analysis which divides customers into groups whose valuations and preferences of products are similar. Ideal products and marketing programs can then be designed through the profiling analysis to help accommodate and attract the segment which management determine are the most profitable and effective for Messina to target.

Finally, a positioning analysis was used to understand the competitive landscape of ice cream and where Messina is placed compared to its rivals. This analysis identifies capacities where other competitive points of difference can be explored by management and which areas Messina should focus their attention.

info draw from

recommendations

2. Introduction

The history of the gelato dates back to Ancient Rome, when ice and snow was brought back from the mountains. However, gelato ice-cream only gained popularity after the ice-cream machine was perfected by Francesco Coltelli, and after the first gelato cart was developed in the 1920s. Today, ice-cream and gelato is increasing in popularity (MarketLine, 2015). With customer insights and information, Messina is has the potential to create a new, readily available product to benefit from this popularity.

This report aims to analyse the popularity of ice-cream products in the Australian market. Through survey generation, conjoint analysis, segmentation and positioning tools, this report will additionally be used for a new product design by recommending the most beneficial attributes to both consumers and to Messina. Finally, through this analysis, this report will suggest distribution and marketing strategies for the success of Messina’s new product. This report uses responses from the survey of 50 ice-cream consumers to compare consumer preferences in ice-cream attributes and to evaluate competitors.

A brief analysis of the global ice-cream industry shows that the total ice-cream industry has a market value of $60.5 billion and is forecasted to increase $74.1 billion by 2018, a growth of 22.4%. The biggest market is Europe, with a share of 41%, followed by Asia-Pacific, with a 29.6% share. The biggest competitors in the industry are Unilever, with a total market share of 19.1 %, and Nestle, with a total market share of 13.2%. Currently Messina operates in the “impulse” ice-cream category, since their ice-cream products are sold from their ice-cream stores across Sydney. This category accounts for 39.2% of sales. However, with “take-home” ice-cream accounting for 37.6% of sales, Messina has a chance to increase its profits and market share significantly.

3. Background

Gelato Messina is an Australian business founded by Nick Palumbo in 2002.

The first store was located in Darlinghurst, New South Wales, offering only 20 basic flavours. In 2009, at a rapid growth point, Declan Lee joined the business to make improvements to the operating system and processes that had become outdated. Since opening their first store in Sydney the company’s goal is to set the benchmark for gelato in Australia.

Currently the company operates seven gelato bars in Sydney, one in Melbourne, and has expanded overseas with a store in Las Vegas, USA. Now they work with 40 flavours in each store giving their customers more alternatives.

Gelato Messina build their reputation for their high quality and excellent flavours. The good quality is aligned with the selection of raw and natural ingredients that pass through a high standard selection process. All their products are fat free, dairy free and used natural fruits. The company is focused in their customers to get insight and create new flavours every month.

Gelato Messina is focussed on delivering exemplary customer service, for that reason it manages a team of 120 individuals who perform a variety of roles and are focused to delighting their customers. At the same time, to be closer to their customers, in 2013, Gelato Messina created a book about the preparation of ice cream for 40 flavours so that their customers could prepare home-made ice cream.

4. Management Decision Problem and objectives

In order to successfully launch a new product into the market, Messina is interested in understanding product preferences as well as general demographic and behavioural characteristics of their customers. In this way, they will be able to choose a successful product type for a target segment.

The following objectives have been put forward:

Determine attribute preference
Identify different segments and most appropriate target segment(s) for new product
Determine optimal products and potential market share
Analyse competitor and Messina positioning in the market
Recommend suitable products for target market
Recommend communication and distribution strategy for target/new product(s) including price, promotion, place and ?

5. Management Decision Criteria

The decision to take the popular Messina brand to external retailers and vendors was not a decision taken lightly. For the growth of the company, management decided this was the next step to increase their market share and expansion of the business. Concerns of damaging their position as a gourmet, upper market, and high quality ice cream were taken seriously. Management developed a strong market research plan to minimise the risk and uncover the most successful and sought after Messina product to be taken to the market. This research proposal will allow Messina to determine which ice-cream flavour, combinations and packaging is preferred for the most profitable market segment.

In order to gain the most appropriate insights, management decided to use a conjoint analysis for their product design. Conjoint analysis uses data on customers overall preferences for a selected number of product bundles and decomposes these overall preferences into utility values (part worths) that the customer assigns to each level of each attribute (Lilien and Rangaswamy, 2004, p239). The process undertaken allowed management to determine the value to respondents of many different product design options that they couldn’t evaluate directly. It also helped develop quantitative forecasts for the sales or market shares of alternative product concepts under consideration, and to price out non-economic attributes (Lilien and Rangaswamy, 2004, p240).

Partnering with the conjoint analysis, the segmentation analysis helps to divide the customers into groups whose valuations and preferences of products are similar within groups (Lilien and Rangaswamy, 2004, p61). Ideal products and marketing programs can then be designed through the profiling analysis to help accommodate and attract the segment which management determine are the most profitable and effective for Messina to target.

Finally, a positioning analysis will be used to help better understand the competitive market of ice cream and where Messina is situated compared to its rivals. As mentioned, Messina holds a strong market position of high quality and flavoursome ice cream, this analysis can assist with identifying areas where other competitive points of difference can be potentially explored by management.

6 Research Design Rationale

6.1 Research Design

Research into the most important attributes of new products to consumers is essential in offering a product that will satisfy the needs of consumers. For this reason, initial exploratory research was conducted in the form of a small focus group in order to ascertain the most important ice cream attributes to consumers. Attributes of most importance were flavour, packaging, size and price, nut options, recyclable packaging and fat content. This information was used in the survey formulation and as a base for the new product.

In order to understand consumer opinions on each of these attributes, a survey of 50 ice cream consumers was conducted. Questions included in the survey were behavioural based, psychographic based, demographic based and new product based. The new product concept was tested using a reduced Balanced Incomplete Block Design (BIBD), using the 6 important attributes as discovered by the exploratory research. To do this, 10 sets of 4 bundles were used, testing a total of 16 product bundles. The information collected by the survey was used to identify the most relevant product attributes for the new product. Additionally, the survey provided information useful for the purposes of segmentation and positioning. These are essential for choosing profitable and market-share enhancing target markets, informing the basis of an appropriate marketing plan and identifying consumer perceptions of Messina ice cream.

The following section identifies the methodology of the research.

6.2 Methodology

6.2.1 Field Work

The surveys were conducted over a 2-week period in the month of April. Surveys were extended to ice-cream consumers in the Sydney area in order to gain the most accurate sample population. Face-to-face interviews were used for the purpose of survey clarification.

6.2.2 Sample & Scope

There was no age limit since the survey was conducted under the assumption that all age groups consume ice cream. A total of 50 surveys were completed. Respondent selection was random in order to minimise bias and fixed outcomes. Respondents were required to have eaten ice cream within the last month.

6.2.3 Questionnaire

The questionnaire included 5 main sections; Behavioural to gain knowledge about consumer ice cream consumption, psychographics to gain knowledge about consumer’s general purchasing habits, product rating, competitor questions to understand competitor perception and demographics. See appendix for questionnaire.

6.2.4 Study Design and Analysis

Messina management are interested in knowing which of the below 4 product concepts will be the most preferred by target consumers:

Salted caramel and white chocolate in stick form sold individually for $3.20 with hazelnuts, recycled packaging, and is low fat
Pear and rhubarb in cup form sold in a pack of 4 for $11.00 with almonds, non-recyclable packaging, and isn’t low fat
Coconut and lychee sold in bar form, in a pack of 6 for $15.00 with pistachio, recycled packaging, and is low fat
Chocolate fondant in a cone form in a pack of 8 sold for $18.00, no nuts, non-recycled packaging, and isn’t low fat

A conjoint analysis is thus proposed to assist management with the above decisions. The conjoint analysis study using a fractional orthogonal design (a subset of the full factorial design of 4^4 * 2^2 = 1024) will be used involving the following six attributes:

Flavour with 4 levels: Salted caramel and white chocolate, pear and rhubarb, coconut and lychee, chocolate fondant
Packaging with 4 levels: Stick, cone, bar, cup
Pack size/price with 4 levels: Single ice cream for $3.20, pack of 4 for $11.00, pack of 6 for $15.00, pack of 8 for $18.00
Nut options with 4 levels: Hazelnuts, almonds, pistachio, no nuts
Recyclable packaging with 2 levels: with, without
Fat content with 2 levels: Low fat option, non-low fat option

To ascertain this information, the survey employed a reduced Balanced Incomplete Block Design, a form of Best-Worst Analysis. This form of analysis is useful for new product surveys since the same item may be asked multiple times, data is more reliable, it avoids the difficulty of ranking and gives respondents a less tiresome method of assessing products.

Microsoft Excel Marketing Engineering (MEXL) was used for the analysis of the results of the survey. The information collected was used to assess part-worth and as the basis for segmentation and positioning in order to choose a target market and to design a marketing plan to reach objectives.

7.0 Results

7.1 Sample Characteristics

7.1.1 Demographics

As indicated earlier, 50 randomly selected respondents were surveyed in the Sydney CBD. Therefore, the collected responses can only be seen as the first level of marketing research for the new Messina products, but are not representative.

The respondents were selected using non probability sampling by the researcher and a total of 50 people participated in the survey. Figure 1 shows that there was a relatively even distribution between male and female respondents, with female respondents accounting for 52% and males accounting for 48% of the total spread. In addition, figure 2 illustrates that 60% of the respondents were aged between 25-34 years old, followed by the age group of 19-24 with 20% and 45-54 age bracket accounting for 10%. Please note that age brackets 55-64 and 65 and older had no one participate in the survey.

Figure 3 shows that 32% of the respondents earn under $25,000 per year, this insinuates that a strong percentage of people interviewed may in fact be students. The second highest percentile were people earning between $50,000 – $75,000 which was 28% which was closely followed by people who earned between $25,00 and $50,000. A total of 18% of people interviewed had a yearly income over $75,000.

7.1.2 Behavioural Characteristic

To get a better understanding of the respondents behaviour in regards to ice cream, they were asked how often they purchased ice cream, whether they generally bought individually or in packs and where they generally purchased their ice cream. Results show that 66% of the people surveyed either bought ice cream once a fortnight or once a month with 20% buying it once a week or more frequently. 14% of the respondents have someone else buy it for them.

When looking at how they bought ice cream in regards to individually or in a packet, 48% mentioned they buy individually, 20% in a pack and 32% said they did both. Therefore it would be wise for Messina to develop a product that caters for both of these consumers in order to appeal to a wider market and because of the differing ranges. However, if a decision was to be made on one, individual messina ice creams would be the preference capturing 80% of the market.

7.2 Segmentation

The information gathered regarding consumers preferences, behaviors and attitudes was then divided into segments in order to determine similar groups of customers who shared common characteristics. The aim of this was to help better understand the customers purchase motivation, identify which customers would be the most profitable and attractive to the firm and to target a marketing campaign at these specific segments. In order to achieve this a hierarchical cluster analysis was used to help uncover these particular segments that could be targeted.

As can be seen in the table below, 9 clusters were initially examined in the segmentation, however the Scree Plot recognised that 3 clusters would be the optimal number of clusters to be used.

After selecting the 3 clusters for the segmentation analysis , we rerun with 3 cluster analysis, using the values from the table above, the following dendrogram (Figure …xxx.) was produced. This is a visual representation of the distance data in table above for clusters

Based on these 3 clusters, descriptive data was used to profile each segment in combination with customers’ preferences found in the conjoint analysis. To have statistical data, the total number of respondents that was 50,was automatically moved to 500 . Now the population is N= 500 for the purpose of the segmentation analysis. In the table below the size of each cluster used for the segmentation can be seen.

The following segment profiles were discovered:

7.2.1 Segment 1: ‘Big Spenders’

Segment 1 includes 40% of all survey participants and is the largest segment. Demographic and behavioural characteristics are outlined below, as well as a product preference description.

Demographics

55% are male
85% are within the age group 35-34 and 15% are within the age group 35-44
60% are full-time workers and 25% are students
70% have a yearly income of $50,000 or above

Behavioural Characteristic

60% listed supermarket as “most preferred” place to buy ice cream
40% said they buy their ice cream individually, 30% in packs, and 30% both
10% purchase ice cream once a week, and 25% fortnightly, and 50% once a month but consume it regularly, with 95% consuming within the last 3 weeks
45% either agree or strongly agree with the statement “I like to experiment with new flavours”
70% agree or strongly agree with the statement “I like to try new things”

Product Preference

The preference partworths for segment 1 indicate that flavour is the most preferred attribute (56.5% partworth), with ‘chocolate fondant’ being the preferred flavour . Packaging was the second most important attribute, with ‘cup’ being the most preferred packaging option. As is consistent per the behavioural questions, these consumers would prefer to buy a single ice-cream over a packet, but the partworths analysis suggests that they are not sensitive to price, since this is the 4th most important attribute of the 6 attributes tested.

From this information, and the fact that this segment has a high yearly income (70% with yearly income >$50,000) and most have full time jobs (60%), we can assume that this segment has a high disposable income and they are not necessarily value seekers. They are willing to forgo low cost in preference for flavour, cup packaging and recyclable packaging.

Optimal product 1 for ‘Big Spenders’ was compared with an existing product from Weis. From this analysis, using the share of preference rule (for low-involvement products), it was found that optimal product 1 for ‘Big Spenders’ would achieve a market share of 71%, lowering Weis’s market share for their product to 29% from 100% .

7.2.2 Segment 2: ‘Budgeters’

Segment 2 includes 26 % of all survey participants and is the third largest segment. Demographic and behavioural characteristics are outlined below, as well as a product preference description.

Demographics

2 % of this segment is between the ages of 25-34 and 30.8% are between the ages of 45-54
5% of this segment are male, and 38.5% are female.
5% of this population are students, and 61.6% are either full-time or part-time workers
6% of this population make <$50,000 per year

Behavioural

6% of the segment consumed ice cream two weeks ago or less
8% prefer individually packaged ice cream over packs
2% prefer to buy ice cream in supermarkets, with convenience store being second choice
6% of this segment agree on the statement “I often look for special discounts when grocery shopping”
1% of the segment agree on the statement “I would consider myself brand loyal”
77% agree or strongly agree with the statement “I like to try new things”

Product Preference

For cluster 2, Budgeters, the most important attribute is the Flavour with 57.8%, being the Pear and rhubarb flavour the most prefered. The second important attribute is the nut option, with 15.6% . The highest preference is for Hazelnuts. Budgeters rate price/size as the third most important attribute (12.5%), with a pack of 4 for $11 being the prefered choice. This pack represents value for money.

Whilst size and price come third in attribute preference, it can be considered second after general taste (since flavour and nut options have to do with taste), and still accounts for a significant proportion of the decision. From this segment’s behaviour and demographic characteristics, we can see that this segment has a high ice cream purchase rate (with 54% purchasing at least once a fortnight) and they are highly sensitive to price, confirmed by the low income (< $50,000 per year). They search for discounts and are influenced by new products and flavours in the market. A low brand loyalty could be perceived because their switching is driven by new product or flavours launched onto the market.

The least important attributes to this segment are recyclable packaging, low fat option and type of packaging.

Optimal product 1 for ‘Budgeters’ was compared with an existing product from Weis. From this analysis, using the share of preference rule (for low-involvement products), it was found that optimal product 1 for ‘Budgeters’ would achieve a market share of 51%, lowering Weis’s market share for their product to 49% from 100%.

7.2.3 Segment 3: ‘Decision makers’

Segment 3 represents 34 % of all survey participants and is the second largest segment. Demographic and behavioural characteristics are outlined below, as well as a product preference description.

Demographic

6% of this segment are female
2% are part-time workers and 35.5% are students
3% of this segment make <$50,000 per year
4% of this segment are between the ages of 25 and 44

Behavioural

53% of this segment do the shopping for the household
7% of this segment purchase ice cream at least once a fortnight
9% of this segment agree or strongly agree with the statement “New products excite me”
9% of this segment most prefer the supermarket for purchasing ice cream
6% of this segment consider themselves as brand loyal
This segment is the least likely to search for discounts, with 47.1% saying they are undecided or disagree with the statement “I often look for special discounts when grocery shopping”

Product Preference

The analysis showed that for ‘Decision Makers’, the most important attribute was ice cream flavour (32.6%), with pear and rhubarb being the most prefered flavour. This was followed by price/size (23.39%), with pack of 6 for $15.00 being the prefered type. This was followed by packaging type (16.57%), with stick being the most prefered choice.

This segment is so labeled because it is made up of 70.6% female. Additionally, given the age bracket, we believe this segment may be part of a household with young children, and thus majority of this segment are either working only part time, or are studying. Their partner is likely working full-time, indicating that whilst this segment earns little money themselves, they may still have a high household income.

This segment frequently does the household shopping, and thus makes the decisions about the products being bought. She will purposely buy a pack of 6 for $15.00, for value, but also for convenience since she likely is buying for the family. This buyer is also brand loyal (70.6% of segment) and has trusted ‘go-to’ brands. This segment is also least concerned about discounts, preferring to buy quality for themselves and their families.

Optimal product 1 for ‘Decision makers’ was compared with an existing product from Weis. From this analysis, using the share of preference rule (for low-involvement products), it was found that optimal product 1 for ‘Decision makers’ would achieve a market share of 57%, lowering Weis’s market share for their product to 43% from 100%.

7.2.4 Segmentation Findings

This section described and analysed 3 different segments. Based on the results of this analysis, we have concluded that segment 3 is the most appropriate segment to target.

Segment 3 is an attractive segment for several reasons. Firstly, they are the second largest segment, representing 34% of the surveyed individuals. This segment are frequent purchasers of ice cream (64.7% purchase at least once a fortnight) and are least swayed by discounts, preferring product quality over deals. Furthermore, they are likely to try new products, and remain brand loyal if they enjoy this new product. They are the most reliable segment. Furthermore, the introduction of optimal product 1 for this segment would gain a market share of 57%, leaving Weis’s product with a 43% market share.

In addition, we have chosen to target segment 1. Segment 1 is attractive firstly, because they represent 40% of all survey participants. This segments represents high income earners (70% earn >$50,000 per year) and are not concerned about price. Whilst this segment purchases less frequently than the other two segments, they are more attractive than segment two, who would always be searching for discounts (and therefore hardly ever purchase at full price) and are prone to switching brands easily. Also, whilst this segment may not purchase as regularly as the other segments, their consumption is quite high, suggesting that someone else is sometimes buying on their behalf (perhaps family members or partners). This would make sense since 55% of this segment are male, and usually the female partner will do household shopping. The optimal product for this segment is also projected to have a market share of 71% against Weis (29%).

7.3 Marketing Positioning

The research conducted for Messina Gelato about the current perception of customers for Messina and their 5 competitors, gives the following positioning map:

The perceptual map shows two dimensions (I and II). The horizontal dimension (Dimension I) explains 71.3% of variance, and the vertical dimension (Dimension II) explains 25.2 % of total variance. The horizontal dimension is three times as important to explain overall customer perception. Both dimensions represent a total of 96.5%, total variance concluding that the positioning map is satisfactory. Dimension I explains the attributes of quality and flavour. Dimension II explains the price attribute.

The blue lines, represents the respondents trend, as is shown most of the lines are focused in the flavour and quality. Less blue lines are directed to the price attribute. This should indicate the different preference of the customers.

The distance between products on the map indicates their perceived similarities. By observing the perceptual map for Messina, it is shown that the more similar competitor for Messina is Weis brand, because the distance between both brands is shorter in comparison with the length between the other brands. The attributes of quality and flavour for Messina Gelato is high. But the attribute of price has a negative association, so is perceived as an expensive product but with high quality and flavours.

By observing the ranking of attributes we can determine that respondents perceived Messina to have high quality and flavour, but high price, being in third place of the chart. For the attribute of Flavour, the second brand preferred is Peters and Streets and for the attribute of Quality the second brand perceived is Weis follow by Streets.

Price: 1) Streets, Peters 2) Bulla 3) Messina 4) Ben & Jerry’s

Flavour 1) Messina 2) Peters 3) Streets 4) Ben & Jerry’s 5) Bulla

Quality 1) Messina 2) Weiss 3) Streets 4) Ben & Jerry’s 5) Bulla

Brands / Attributes	Ben & Jerry’s	Streets	Messina	Weiss	Peters	Bulla
Price	2.56	3.42	2.94	3.10	3.42	3.38
Flavour	3.18	3.22	3.48	3.02	3.26	2.28
Quality	3.02	3.1	3.46	3.12	2.9	2.46

The market analysis is made by using Share of Preference analysis because is an impulsive product. The graph shows that Messina has the highest Market Share of 18.69% being the highest from all competitors. Following by Streets (17.73%) and Peters (17.1%). (Do we have a perceptual map showing this?)

Market Share %

Messina 18.69%

Streets 17.73%

Peters 17.1%

Weiss 15.47%

Bulla 15.17%

Ben & Jerry’s 15.84%

If Messina should decide to use marketing to increase their emphasis on the attributes of flavour and quality, with the objective of intensifying the market perception and to be more aligned to the target market, the market share for Messina would change from 18.69% to 22.14%. (do we have a perceptual map for this as well?) idk y , include theimag in the word file

In summary, according to the results above. Messina is in a good position in relation to attributes of flavour and quality. Also, Messina has more customer preference lines than Weiss or Streets, indicating that Messina is a prefered brand in comparison to competitor brands.

However, the attribute of price is perceived as a negative association for Messina, so the company need to develop strategies to improve this perception, or at least to offset their higher price. At the moment Streets and Peters are in better position for price, which represents a competitive advantage for Peters. In the next section, we are going to indicate the communications strategy for Messina Gelato for the chosen target markets.

Table from Data Analysis:

Include table of means!

Market Analysis

Based on our segmentation research, we can target segment 3, as far as they are young professionals and more likely influencers and innovators. As far they like to try something new, they are likely to switch between the brands, so we can work on attraction of this target market. Moreover, we can work on a strategy that will persuade them to consume more often. For example, work on a ‘cool factor’, promote the product in social media and via big influencers, such as celebrities, bloggers and other young professionals who achieved a lot in their career. To persuade this particular segment to buy more often, we can also work on a packaging and offer them smaller portions, with less calories as well. This segment will be more likely to try new flavours and share their experience with the others.

Recommendations ( Ali/ Luke)

8.1 Marketing Mix

8.1.1 Product (Luke)

Selecting the right product is necessary when introducing new products into the market. For this project, 4 types of flavours were analysed along with packaging, size, type of nut, low fat and whether its packaging is recyclable. The analysis demonstrates several product attributes that Messina should focus on when developing this product.

It was shown from the segmentation analysis that segment 1 and segment 3 were the most attractive for Messina to target. Both highlight several appealing behaviours that shouldn’t be ignored when developing the right ice cream. Therefore, in the new product development stage it is recommended to put the highest emphasis on the preferences of these 2 segments. The table below show the optimal product profiles for each of these segments.

When reviewing this data some recommendations can be made. With a big preference based on flavours it would be wise for Messina to develop a product that covers both chocolate fondant and coconut and Lychee to capture a bigger portion of the market and provide the customer a choice and some variation when choosing. When looking at Size, Segment 1 had their second preference of a pack of 6 for $15.00 (the highest preference for segment 3). Thus, focussing on a single ice cream as well as a pack of 6 would be the most appropriate sizes for Messina to develop. Segment 3 had ‘cup’ just below ‘stick’ in preference for packaging so ‘Cup’ could therefore be considered the best option for packaging. Nut options weren’t a huge contributing aspect for decisions in these segments so pistachio and almonds could both but if one was used ‘Pistachio’ would be the preferred. It would not be worth focussing on recyclable packaging and in conclusion for the ideal product, a low fat ice cream should be taken to the market.

8.1.2 Price (Ali)

hey ali

ive just wrote a cuple of

In order to improve the pricing position to obtain more customer satisfaction, Messina may need to identify which products are need to use new pricing strategies. In order to improve the pricing position to obtain more customer satisfaction, Messina may need to identify which products are need to use new pricing strategies. the Price options range from $3.20 to $18.00, and based on the size the price will vary. Existing and potential customers of cluster 2 seems to be very price sensitive, as they prefer the Pear and rhubarb flavour the third most important attribute (12.5%), with a pack of 4 for $11 being the preferred choice. This the worst value of money.

8.1.3 Promotion (Ali)

Messiana may need to consider creating new offers in order to reach their target market and to expand to the other segments needs. In the promotion strategy it is important to address the message to the target segment and to non- customers in order to persuade them choosing their brand. At this point it is also essential to target those consumers, who like to try new products and who are interested in new brands (according to the survey). To meet the needs of segment 2, special offers and deals have to be provided to the customers. However, we can not discount too heavily and too often, as far as Messina might be perceived as a low quality brand for the other segments. For instance, every week can be offered special price for a particular flavour. As far as segment 2 is less loyal to a particular flavour and more loyal to the discounts, they would buy the products on offers.

8.1.4 Place (Ali)

Most of the consumers use to buy the ice-cream from the supermarkets – . This point is related to the coffee location, Messina may need to be more closer to the customers and its stores should be more continence.

9. Limitations (Ali)

The perceptual map provides only a partial explanation of customer perceptions, preferences and choices as well as their relationships.
Brand evaluations and insights are limited to the set of products and attributes. So, they will only support positioning efforts within the existing framework.
Mapping techniques don’t explain the customers perceptions and why they prefer a brand.
When there are different attributes, it is difficult to capture 90% or more variance with 2D or 3D map.
The data can be difficult to obtain through marketing research and it needs to a long time.
Answers from some respondents are not consistent
For the analysis has been used the reverse coded formula for question 7.
Conclusions ( Ali)

11. References

Appendix

Appendix 1: Survey

Survey

Introduction

This survey is designed to gain an understanding on your interest and opinion on ice-cream flavours, packaging and price and will be used for the generation of a new ice-cream product to be launched around Australia. This is an anonymous, non- commercial study. The information you provide will only be used for the purpose of university study and will not be distributed to any third party.

To start with, we would like to know when the last time you consumed ice-cream was. Please tick the appropriate box.

□ Less than a week ago

□ 2 weeks ago

□ 3 weeks ago

□ 1 month ago

□ More than a month ago

If your answer was “more than a month ago”, please stop the survey here. For this particular survey, we are looking for individuals who have consumed ice-cream within the last month. Thank you for your time.

Behavioural

When was the last time you purchased ice-cream?

❏ Less than a week ago

❏ 2 weeks ago

❏ 3 weeks ago

❏ 1 month ago

How often do you purchase ice-cream?

❏ Once a day

❏ Once a week

❏ Once a fortnight

❏ Once a month

❏ I don’t purchase it. Someone else in my household does.

Do you generally buy ice-cream individually, or in packs?

❏ Individual

❏ Pack

❏ Both

Where do you generally buy your ice-cream from? Please rank from 1-4 in order of frequency (1 being most frequent, 4 being least).

❏ Supermarket

❏ Convenience store

❏ Petrol station

❏ Other (please specify) ____________________

Psychographics

Please Rate your level of agreement with the below statements and Tick the corresponding box to match your choice

	Strongly Disagree	Disagree	Neutral	Agree	Strongly Agree
I like to buy different products from the same brand
I like to experiment with new flavours
New products excite me
I generally do the grocery shopping for the household
I like trying new things
I often look for special discounts when grocery shopping
I would consider myself brand loyal
When I see a new brand on the shelf, I usually pass right by
I like a great deal of variety

Please rate the following product bundles. For each set, choose ONE of the 4 products that you most prefer and ONE of the 4 products that you least prefer, marking your preferences in the appropriate box on the right.

Set 1	Flavour	Packaging	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 02	Salted caramel and white chocolate	Cup	Pack of 4 for $11.00	Pistachio	No	No
Bundle 05	Pear and rhubarb	Stick	Pack of 4 for $11.00	Almonds	Yes	No
Bundle 08	Pear and rhubarb	Cone	Pack of 6 for $15.00	Hazelnuts	No	No
Bundle 14	Chocolate fondant	Cup	Pack of 6 for $15.00	Almonds	Yes	Yes

Set 2	Flavour	Packaging	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 05	Pear and rhubarb	Stick	Pack of 4 for $11.00	Almonds	Yes	No
Bundle 09	Coconut and lychee	Stick	Pack of 6 for $15.00	Pistachio	No	Yes
Bundle 12	Coconut and lychee	Cone	Pack of 4 for $11.00	None	Yes	Yes
Bundle 16	Chocolate fondant	Cone	Single ice-cream for $3.20	Pistachio	Yes	No

Set 3	Flavour	Packaging	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 01	Salted caramel and white chocolate	Stick	Single ice-cream for $3.20	Hazelnuts	Yes	Yes
Bundle 02	Salted caramel and white chocolate	Cup	Pack of 4 for $11.00	Pistachio	No	No
Bundle 03	Salted caramel and white chocolate	Bar	Pack of 6 for $15.00	None	Yes	No
Bundle 04	Salted caramel and white chocolate	Cone	Pack of 8 for $18.00	Almonds	No	Yes

Set 4	Flavour	Package	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 06	Pear and rhubarb	Cup	Single ice-cream for $3.20	None	No	Yes
Bundle 08	Pear and rhubarb	Cone	Pack of 6 for $15.00	Hazelnuts	No	No
Bundle 13	Chocolate fondant	Stick	Pack of 8 for $18.00	None	No	No
Bundle 15	Chocolate fondant	Bar	Pack of 4 for 11.00	Hazelnuts	No	Yes

Set 5	Flavour	Pack	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 03	Salted caramel and white chocolate	Bar	Pack of 6 for $15.00	None	Yes	No
Bundle 08	Pear and rhubarb	Cone	Pack of 6 for $15.00	Hazelnuts	No	No
Bundle 11	Coconut and lychee	Bar	Single ice-cream for $3.20	Almonds	No	No
Bundle 16	Chocolate fondant	Cone	Single ice-cream for $3.20	Pistachio	Yes	No

Set 6	Flavour	Packaging	Size / Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 07	Pear and rhubarb	Bar	Pack of 8 for $18.00	Pistachio	Yes	Yes
Bundle 10	Coconut and lychee	Cup	Pack of 8 for $18.00	Hazelnuts	Yes	No
Bundle 11	Coconut and lychee	Bar	Single ice-cream for $3.20	Almonds	No	No
Bundle 14	Chocolate fondant	Cup	Pack of 6 for $15.00	Almonds	Yes	Yes

Set 7	Flavour	Packaging	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 04	Salted caramel and white chocolate	Cone	Pack of 8 for $18.00	Almonds	No	Yes
Bundle 09	Coconut and lychee	Stick	Pack of 6 for $15.00	Pistachio	No	Yes
Bundle 13	Chocolate fondant	Stick	Pack of 8 for $18.00	None	No	No
Bundle 14	Chocolate fondant	Cup	Pack of 6 for $15.00	Almonds	Yes	Yes

Set 8	Flavour	Packaging	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 01	Salted caramel and white chocolate	Stick	Single ice-cream for $3.20	Hazelnuts	Yes	Yes
Bundle 11	Coconut and lychee	Bar	Single ice-cream for $3.20	Almonds	No	No
Bundle 12	Coconut and lychee	Cone	Pack of 4 for $11.00	None	Yes	Yes
Bundle 13	Chocolate fondant	Stick	Pack of 8 for $18.00	None	No	No

Set 9	Flavour	Packaging	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 04	Salted caramel and white chocolate	Cone	Pack of 8 for $18.00	Almonds	No	Yes
Bundle 06	Pear and rhubarb	Cup	Single ice-cream for $3.20	None	No	Yes
Bundle 10	Coconut and lychee	Cup	Pack of 8 for $18.00	Hazelnuts	Yes	No
Bundle 16	Chocolate fondant	Cone	Single ice-cream for $3.20	Pistachio	Yes	No

Set 10	Flavour	Packaging	Size/ Price	Nut Option	Recyclable Packaging	Low Fat	Most Preferred	Least Preferred
Bundle 03	Salted caramel and white chocolate	Bar	Pack of 6 for $15.00	None	Yes	No
Bundle 07	Pear and rhubarb	Bar	Pack of 8 for $18.00	Pistachio	Yes	Yes
Bundle 09	Coconut and lychee	Stick	Pack of 6 for $15.00	Pistachio	No	Yes
Bundle 15	Chocolate fondant	Bar	Pack of 4 for 11.00	Hazelnuts	No	Yes

What is your perception of the following ice-cream brands? Please rate each brand by attribute from 1-5, 1 being most preferred, and 5 being least preferred. Examples of Streets include (Magnum, Gaytime, Splice), Peters (Connoisseur, Maxibon, Drumstick) and Bulla (Creamy Classics, Splits).

Attributes/brands	Ben & Jerry’s	Streets	Messina	Weiss	Peters	Bulla
Price
Flavours
Overall quality

Please rank the following brands from 1-6 based on your overall preference, 1 being most preferred, 6 being least.

Ben & Jerries ___________

Streets ___________

Messina ___________

Weiss ___________

Peters ___________

Bulla ___________

Demographics

Which of the following age groups do you fall into? Please tick the correct box below.

□ 18 or below

□ 19-24

□ 25-34

□ 35-44

□ 45-54

□ 55-64

□ 65 or above

What is your gender? Please tick the correct box below.

□ Male

□ Female

What is your employment status? Please tick the correct box below.

□ Full time Worker

□ Part time/casual Worker

□ Unemployed

□ Student

What is your yearly income? Please tick the correct box below.

□ Under $25,000

□ $25,001 – $50,000

□ $50,001 – $75,000

□ $75,001 – $100,000

□ More than $100,000

Please enter your post code below

Thank you for Participating in this Survey!

Appendix 2: The Crosstap

Appendix 3: Data Simulation Market Share

Segment 1: ‘Big Spenders’

Segment 2: ‘Budgeters’

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Topic: marketing analytics

1. Executive Summary

2. Introduction

3. Background

4. Management Decision Problem and objectives

5. Management Decision Criteria

6 Research Design Rationale

6.1 Research Design

6.2 Methodology

6.2.1 Field Work

6.2.3 Questionnaire

6.2.4 Study Design and Analysis

7.0 Results

7.1 Sample Characteristics

7.2 Segmentation

7.2.1 Segment 1: ‘Big Spenders’

Segment 1 includes 40% of all survey participants and is the largest segment. Demographic and behavioural characteristics are outlined below, as well as a product preference description.

Demographics

Product Preference

7.2.2 Segment 2: ‘Budgeters’

7.2.3 Segment 3: ‘Decision makers’

7.3 Marketing Positioning

9. Limitations (Ali)

11. References

Appendix

Segment 2: ‘Budgeters’

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