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A research on the factors that motivate consumers to choose a brand of ice-cream: An analysis on the brand preferences An analysis on the brand preferences among parents in Malaysia among parents in Malaysia MARKETING MANAGEMENT BMMK 5103 Prepared by: ROHANI SHAFIE (CGS00531101) SEOW SWEE MIEE(CGS00528301)
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An analysis on the Ice Cream brand preferences among parents in Malaysia

Oct 31, 2014

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Seow MIee

Does Parents like ice cream?

What factors that motivate parent to choose Ice Cream brand in Malaysia?
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Page 1: An analysis on the Ice Cream brand preferences among parents in Malaysia

A research on the factors that motivate consumers to choose

a brand of ice-cream:

An analysis on the brand preferencesAn analysis on the brand preferences among parents in Malaysiaamong parents in Malaysia

MARKETING MANAGEMENTBMMK 5103

Prepared by:

ROHANI SHAFIE (CGS00531101)

SEOW SWEE MIEE(CGS00528301)

Page 2: An analysis on the Ice Cream brand preferences among parents in Malaysia

MARKETING MANAGEMENTBBMK 5103Table of Content

1. Introduction - Market Trend & Sales Trend

2. Research Problems

3. Research Objectives

4. Research Questions

5. Research Justifications

6. Research Scope & Limitation

7. Underpinning Theory – Theory of Planned Behavior

8. Research Framework & Relationship of Dependent variable

& independent variables

9. Research Methodology

10. Research Results & Findings – Demographic

11. Conclusions

12. Recommendations

13. Future Research

Page 3: An analysis on the Ice Cream brand preferences among parents in Malaysia

1. Introduction - Marketing Trend

• There are varieties of ice cream products in Malaysia such as Walls, Nestle, Baskin Robbin, Haagen-Dazs and others.

• In ice cream industry, consumers will be influenced by many factors in choosing ice cream brands. According to Euromonitor International 2009/2010, sales of ice cream increasing in Malaysia due to disposable income increased.

• Ice cream parlours restaurant become popular due to the lifestyle enjoyment and experience i.e. Haagen-Dazs and Baskin-Robbins. Constantly introducing the new taste of ice cream flavors and attractive serving environment to customers.

• Ice cream manufacturers are also focused on middle-income consumers for bulk ice cream and multi-pack ice cream. Supermarkets and hypermarkets are running attractive special offer regularly during the festive season, school holiday & etc.

• Ice cream in bulk purchase is increasing due to the price cheaper than others type of ice cream.

Page 4: An analysis on the Ice Cream brand preferences among parents in Malaysia

1. Introduction (sales chart)

•‘000 litres  •2005 •2006 •2007 •2008 •2009 •2010

•Sales of Ice Cream : Volume 34,492.28 40,693.36 41,749.48 42,946.99 44,081.07 45,203.23

(1.1) Sales of Ice Cream : Volume 2005 – 2010

(1.2) Ice Cream Company share : Percentage 2005 - 2009 % retail value rsp  2005 2006 2007 2008 2009

Unilever (M) Holding Sdn Bhd 29.05 29.41 30.14 30.32 32.25

Nestle (M) Sdn Bhd 31.11 31.50 32.02 31.83 31.27

King’s Creameries (M) Sdn Bhd 8.41 8.25 8.40 8.63 8.68

F&N Dairies (M) Sdn Bhd 11.81 10.73 8.91 8.24 7.12

Golden Scoop Sdn Bhd 5.12 5.98 6.10 6.52 7.08

HD Marketing & Distribution S/B - - 2.80 2.71 2.56

* Golden Scoop Sdn Bhd is the distributor for Baskin-Robbins and

HD Marketing & Distribution Sdn Bhd is distributing Haagen-Dazs in Malaysia

(1.3) Ice Cream Brand Share (By Global Brand Name) : Percentage 2005 - 2009

% retail value rsp  2005 2006 2007 2008 2009

Nestle 8.6 8.7 9.2 9.3 9.3

King’s 8.4 8.2 8.4 8.6 8.7

Baskin-Robbins - 6.0 6.1 6.5 7.1

Magnolia 9.5 8.9 8.8 8.2 7.1

Cornetto 5.8 5.8 6.0 6.1 6.5

Wall’s 5.8 5.9 6.2 6.1 6.3

*Based on Euromonitor International Report 2009 & 2010

Page 5: An analysis on the Ice Cream brand preferences among parents in Malaysia

2. Research Problems

1. Many studies have done from the children perspectivechildren perspective towards ice cream

2. Unable to search 2. Unable to search significant informationsignificant information from internet from internet in regards to insight on in regards to insight on parents’ perspectiveparents’ perspective..

Page 6: An analysis on the Ice Cream brand preferences among parents in Malaysia

3. Research Objectives #1

1. To identifyidentify the factors why parents love ice cream and factors selectingselecting ice cream brands

2. To find out the factors that influence parents to consumeconsume brand ice cream

3. To analyze the relative significant of otherother factors and may lead to the better quality servicebetter quality service

5. To study the importance of nutrition factnutrition fact of ice cream to parents

4. To understand the pattern of parents purchasing purchasing behaviorbehavior

Page 7: An analysis on the Ice Cream brand preferences among parents in Malaysia

3. Research Objectives #2

6. To analyze the personal preference preference of parents to ice cream whether is similar similar to the childrenchildren

7. To find out type of communicationcommunication that creates awareness of ice cream to parents

8. To investigate the channelschannels of information which motivatemotivate parents to buy ice cream

9. To explore how healthyhealthy ice cream will be effectiveeffective to the parents

Page 8: An analysis on the Ice Cream brand preferences among parents in Malaysia

4. Research Questions

1. What are the general overviewsoverviews of parents on ice cream brands?

3. Will the ice cream advertisementadvertisement and and childrenchildren influence the parents’ purchasing and decision makingpurchasing and decision making?

2. What are the factorsfactors that that influenceinfluence parents to purchase ice cream and brands?

4. Is Ice cream an unhealthyunhealthy food and contributing the problems that parents need to preventprevent their children for eating their favorite ice cream ?

Page 9: An analysis on the Ice Cream brand preferences among parents in Malaysia

5. Research Justification

1. Ice cream sales grew by 3% and contributing RM548.6m

 RM Million 2005 2006 2007 2008 2009 2010

Sales of ice cream : Value 455.32 475.54 498.07 523.27 534.84 548.60

2. Ice cream parlour restaurants become popular due to many flavours have been introduced & dining environment

 RM Million 2005 2006 2007 2008 2009 2010

Sales of ice cream Parlours: Value 32.01 37.42 43.76 46.65 48.92 54.64

Sales of Ice Cream Parlours by category: Value 2005 – 2010 (Euromonitor International Report 2010)

Sales of Ice Cream : Value 2005 – 2010 (Euromonitor International Report 2010)

*Based on Euromonitor International Report 2009 & 2010

Page 10: An analysis on the Ice Cream brand preferences among parents in Malaysia

6. Research Scope & Limitation

1. The study will be confined to 48 parentsconfined to 48 parents and based at various locations in Klang Valley

3. Limited study timeframetimeframe from January 2011 until to mid March 2011

2. The study was conducted in Klang ValleyKlang Valley, Malaysia and any other countries will not be areas of investigations

4. OtherOther researchers on any other brands of foods will not be considered in this research

5. The study was conducted in Klang Valley, Malaysia Malaysia and any other countries will not be areas of investigations

Page 11: An analysis on the Ice Cream brand preferences among parents in Malaysia

7. Underpinning Theory – Theory of Planned Behavior

* This theory provides a framework to study attitudes toward behaviors

The Theory of Planned Behavior (TPB)Theory of Planned Behavior (TPB) from Ajzen, I. has been applied into this research.

Page 12: An analysis on the Ice Cream brand preferences among parents in Malaysia

8. Research Framework & Relationship of DV & IV

Independent Variable (IV) Dependent Variable (DV)

.

* Relationship between dependent and independent variables

The ice cream purchase is dependent variable and the independent variables are grouped into five categories which comprising as at below :

- The independent and the dependent variables are interrelated to each other.

- Researcher could measure the results and come up with conclusions that are very accurate.

Page 13: An analysis on the Ice Cream brand preferences among parents in Malaysia

9. Research Methodology

Exploratory ResearchExploratory ResearchExploratory ResearchExploratory Research

Sampling & population• 48 respondents – 21 to 60 years old• All parent with & without children• survey done in Klang Valley• 100% returns on questionnaire given

Sampling technique • Utilized Convenience Sampling • non-probabilities sampling • self-administered questionnaire

Research instrument• Data Collection - sourced/modified from Question Pro.com, AC Nielson and Euromonitor International • Survey Instrument - Questionnaires prepared. 25 questions - Comprising of 6 sections

1. Demographic profile of Parents 2. Personal Interest of Parents3. Buying Behavior of Parents4. Consumption Pattern of Parents5. Nutrition Perception of Parents6. Advertisement influence to Parents

Analysis tools• Data Analysis - Utilized The Statistical Package for Social Science (SPSS for Window) • Secondary Data - related published articles, industry reports, journals and books

The overview of methodology for this research:

Page 14: An analysis on the Ice Cream brand preferences among parents in Malaysia

10. Result & Findings - Demographic

• Total 48 respondents participated the survey

• Return rate of the survey form is 100%

• The summary of Demographic Profile of the respondents is as below:

Page 15: An analysis on the Ice Cream brand preferences among parents in Malaysia

11. Conclusion #1

What are the general overviews of parents on ice cream brands?

*Based on the result & finding from the survey

• 72.92% like ice cream → HAPPY MOMENT

• 20.48% quoted that ice cream → MY FAVORITE DESSERT

• Key preferred flavors → VANILLA & CHOCOLATE

• Top 3 preferred brands → WALLS, NESTLE & HAAGEN-DAZS

• Top 3 Behavioral Consumption Pattern

Basic Ice Cream Lover35.42%

Ice Minimalist27.08%

Ice Cream Value Maximizer20.83%

• 31.25% prefer new experiences & enjoyment →ICE CREAM PARLOURS

• 4.12% expect more channel development → ICE CREAM PARLOURS

Page 16: An analysis on the Ice Cream brand preferences among parents in Malaysia

11. Conclusion #2

What are the factors that influence parents to purchase ice cream and brands?

*Based on the result & finding from the survey

• 64.58% prioritize CONTENT of ice cream during purchase

• 22.92% influenced by PRICE

• Other factors → ADVERTISEMENT, PROMOTION, NUTRITION & HOT WEATHER

• 45.83% normally buy ice cream → for WHOLE FAMILY

• 29.17% specially buy for → CHILDREN

• Experiential Marketing → Influence unplanned + planned PURCHASE

- Free food tasting - Normally at super/hyper market- especially for parents in the cities

Page 17: An analysis on the Ice Cream brand preferences among parents in Malaysia

11. Conclusion #3

Will the ice cream advertisement and children influence the parents’ purchasing and decision making?

*Based on the result & finding from the survey

• 72.92% aware on ice cream information from → TELEVISION

• Other source of information → Pamphlet & Words of Mouth (WOM)

• Free Sample tasting → effective & trigger the unplanned purchase

• Children request and demand → influence parent & family decision

• Level of influencing of children depend upon their :

• TV Advertisement → INCREASE purchase request of children

Family CommunicationPattern

Parenting Style Development stage

• Ice Cream → a form of REWARD to children after completing the job given

Page 18: An analysis on the Ice Cream brand preferences among parents in Malaysia

11. Conclusion #4

Is ice cream an unhealthy food and contributing the problems that parents need to preventing their children for eating their favorite ice cream?

*Based on the result & finding from the survey

• 60.42% having intention to buy → HEALTHY ice cream

• 52.08% will pay extra money for healthy ice cream → at the range of RM5-RM10

• 50% like to see more HEALTHY ice cream in the market

• other expectations in ice cream industry → more Choice on NEW FLAVORS → LOWER PRICE

• Parent influence children on → EATING experiences and environment

Page 19: An analysis on the Ice Cream brand preferences among parents in Malaysia

12. Recommendation #1

1. MORE studies on the differences of needs, expectations and satisfactions of parents and children.

The researcher hopes that the ice cream manufacturers and marketers of various companies could benefit from the following suggestions:-

2. IMPROVE & STRENGTHEN every touch points of customer.- Moment of Truth (MOT) is a influential and powerful elements in customer service

3. Leverage on experiential marketing, in-store display & merchandising activities.- encouragement and engagement on communication with consumers- promote healthy ice cream in order to change the perception

Page 20: An analysis on the Ice Cream brand preferences among parents in Malaysia

12. Recommendation #2

4. To carry honest and accurate message in ice cream advertisement - No wrong interpretation of nutrition benefits to customers.

The researcher hopes that the ice cream manufacturers and marketers of various companies could benefit from the following suggestions:-

5. Value-added INNOVATION to consumers.- expand demand of health and wellness food. - reduce fat & sugar offerings- calcium-enriched ice cream products

6. Leverage ethical positions & differentiate products from others rivals.

Page 21: An analysis on the Ice Cream brand preferences among parents in Malaysia

13. Future Research

The researcher would like to propose areas that can be explored as followings:

1. carried out on the wider scope of sampling in Malaysia such as more respondents in the survey.

2. conducted with respondents from various region such as covering more states by region. (North, Centre, south, east coast and east Malaysia)

3. carried out towards the comparison of parent and children between their needs and expectation on ice cream.

The future research should beThe future research should be

Page 22: An analysis on the Ice Cream brand preferences among parents in Malaysia

13. Future Research

The researcher would like to propose areas that can be explored as followings:

4. specified the comparison of parent and adolescence between their needs and expectation on ice cream.

5. conducted with an ample timeframe in order to get the accurate data and information.

The future research should beThe future research should be

Page 23: An analysis on the Ice Cream brand preferences among parents in Malaysia

Good Good LifeLife. Good . Good FoodFood with with Ice CreamIce Cream

Thank youThank you