Rebecca’s Dairy Assessment
Activity 1: The Rationale
Introduction
For this activity, I have been asked to prepare a rationale for the business Rebecca’s Dairy to
diversify the products they sell. Rebecca’s Dairy is an organic farm with 60 years of expertise and
knowledge in the dairy industry, who are wanting to manufacture artisan ice cream to increase its
profits. To achieve this, the company will increase their brand awareness and loyalty in Wales and
improve profitability by developing new products and diversifying their range. This will aid the
business as it will give them the base for promoting and marketing their new products.
I have chosen to follow the marketing strategy of targeting health-conscious consumers between the
ages of 16-30, who are willing to pay more to receive quality products by advertising more, using
social media and word of mouth promotion. This audience will be pursued as according to research,
consumers these days are warier about the types of foods they eat and their health, so businesses
need to consider this changing lifestyle in order to fulfil their wants and needs. I have been given an
initial marketing campaign budget of £50,000 and this will be utilised to accomplish the marketing
aims and objectives that are set down below.
Marketing aims and objectives
By the end of this marketing campaign, I am hoping to achieve the following aims:
Aim 1 - Using production to create 5 low calorie, high-quality ice cream products.
This aim will be achieved over a 5-month period including the research, development and
production time. It is going to be measured by keeping a time scale of all the progress that has been
made and this will also give an insight into when the goal is going to be accomplished. This is
important for them to do as it will give them the time needed to create products that consumers will
love and that is perfect for the target market.
Aim 2 – Having products sold in Welsh supermarkets and near popular, summer tourist attractions in
Wales
This aim will be attained over the next four months after aim one is complete. This will be done
because it will increase brand awareness not only with those who live in Wales, who can then share
their experiences with the ice cream using word of mouth promotion, but also the public visiting
from other places.
Aim 3 – To increase the company’s profits by 7% over the next 6 months
This will be done after the products have been launched, after an extensive amount of development,
production and quality time is given, as this will ensure that the products meet consumer
preferences.
, Rebecca’s Dairy Assessment
Market research on the ice cream industry
Market Research is the activity of gathering information about consumers' needs and preferences. It
is used to inform the decision-making of a business for example: what price to charge or who to
target. Therefore, it must be as accurate as possible. The reason why Rebecca’s Dairy needs to
consider market research is that it will allow them to identify and understand not only their target
consumers but also their competitors. This will permit them to take calculated risks when it comes to
their business as it will give them the information they need before going ahead and making big
decisions before the launch of their new products.
The research conducted on the ice cream market in the UK shows that it is an industry where growth
will take place. As stated the revenue generated in this industry is expected to continue to rise over
the next five years. This highlights that there is going to be a bigger demand for new products,
meaning there is still room for new competitors to emerge, especially those who are wanting to sell
luxury goods. This is because the analysis shows that pint tubs have seen a bigger increase with
some 18p more per litre being demanded by the premium entrants to the category. This means that
for Rebecca’s Dairy there is potential to expand in this sector being luxury competitors. However,
the research also reveals that changes in consumer demand, health consciousness and consumer
concern over what they eat are likely to stimulate further product adaptation and innovation. This
means that consumers these days are more mindful about the types of foods they eat and their
health, so businesses will need to consider this trend in order to fulfil their wants and needs. For
example, a business may want to release products that overall have fewer calories or are fat-free to
match their customers’ desires. This adaptation would result in Rebecca’s diary being more diverse
and inclusive to those who are health conscious, thus leading to a higher number of good reviews
and would reach out to new potential customers, which would increase their business size
dramatically. Nevertheless, if they do not take this growing trend into account, their customers may
take their money elsewhere so that they can find these products.
Target Market
The target market for Rebecca's dairy should be health-conscious consumers between the ages of 16
and 30, who are prepared to pay extra for high-quality products. These are people who form the
middle-upper class and are willing to spend a bit more to acquire high-quality goods. This target
audience was chosen because, according to the research, the popularity of high-end, luxury goods is
increasing in this category, implying that more individuals in this demographic want to see more of
these types of products. Not only this, but men in this demographic consume more ice cream
compared to women as the data displays that ice cream is 58% more popular amongst men who
typically consume it more in the spring and summer months compared to females who 46%
consume ages 16-24. Additional markets that they could consider targeting could be people aged
40+ as the market research report suggests that they are also a popular category to promote too.
Primary & Secondary Research Considerations
Primary research is a method used by researchers to collect data directly, rather than depending on
data collected from previously done research. Secondary research can be collected from both the
inside and outside of a business. Internal research could include financial or marketing information
whereas external research could include information from internet research, market reports and