Market Highlights of Cargills Magic Ice Cream
C. L. Ratnasuriya (2010/MBA/WE/05)
Session I – Second 1 / 2
15th of May, 2011
Course: MASTER OF BUSINESS ADMINISTATION: 534 – Managerial Economics
Dr . Prabhath Jayasinghe
Postgraduate and Mid-Career Development Unit
Faculty of Management and Finance
School of Colombo
Abstract and Introduction3
1 . 0 Product Differentiation4
2 . zero Barriers to Entry5
3. 0 Marketplace Power6
Abstract and Introduction
This report brings about certain market features regarding product differentiation, potential limitations to admittance and market power of the supplier of your selected good in an imperfectly competitive industry. Accordingly, the selected product is Cargills Magic Ice Cream. This was introduced in Ceylon (veraltet) in the year of 2002 by Cargills (Ceylon) Limited. It is one of the speediest growing and reputed brands in the country at the moment. Cargills has 44 variations of ice cream and introduces new flavors for each and every festive and holiday season. Today, these products happen to be spread across all 25 districts of Sri Lanka including North and East and get able to reach a million lt in sales per month as of late. Their particular focus on food safety, quality and the greatest management procedures including environmental sustainability has made Cargills Magic ice cream, the only dairy development plant in the country with thorough ISO certification. After a research, it was recognized that Sri Lankan ice cream industry comes under Oligopoly. There are few firms in this industry with either homogeneous or differentiated products. You will find strong entrance barriers on the market. Ice cream has a relatively inelastic demand. That may be, changes in the selling price of ice cream include a relatively small effect on the number of the ice cream demanded. As ice cream is a fantastic fast food item among all types of consumers and is also priced at a normal price, you will discover no significant changes in demand for its value changes. Rivalry in the ice cream market is somewhat high. This is certainly evident simply by intensive selling price competition within each of the individual categories. The rivalry is usually decreased to a great extent by the amount of merchandise differentiation. If we are to further more analyze the Sri Lankan market structure for ice cream category, it is usually specified like a ‘Duopoly'. Duopoly is " a specific kind of oligopoly wherever only two producers can be found in one market. ” (http://en.wikipedia.org/wiki/Duopoly). In reality, this definition is usually used where only two firms have got dominant control over a market. Accordingly, the two major players in the Sri Lankan ice cream market are Cargills Magic (Cargills Ceylon Limited) and Elephant House (Ceylon Cold Stores PLC).
1 . 0 Merchandise Differentiation
Cargills Magic Your favorite ice cream is a highly differentiated item. Even though ice cream products inside the dairy industry are used to be homogeneous on the whole, Cargills has turned its goodies unique as a result of the competitors mainly through their development and marketing strategies. This powerful product difference has created a big competitive benefits for Cargills. Based upon two main factors, we can identify how Cargills Magic ice cream products have been differentiated. Real Factors
Factors like flavor, size, top quality, convenience could be taken under this. From your initial 3 ice cream tastes - vanilla, chocolate and strawberry, which were in the Sri Lankan market, Cargills has had in to 44 flavors and varieties through its products. As a result, they have presented variation to the customer to try out different experiences simply by moving away from a lot more traditional goodies segment. Regarding quality, each uses the best of local materials. They have a independent range to get the health conscious consumers which include sugar totally free ice cream. Cargills Magic is exclusive for being simply fresh dairy based in fact it is free of virtually any vegetable oil or fat. They may have ice...
Referrals: Thomas, C. R. and Maurice, H. C. (2009). Managerial Economics. New Delhi: McGraw–Hill Education
http://www.businesstoday.lk/cover_page.php?article=1951 – Retrieved on 13. 05. 2011
http://www.lankabusinessonline.com/fullstory.php?nid=748003025 – Retrieved on 13. 05. 2011
(http://en.wikipedia.org/wiki/Duopoly) - Gathered on 16. 05. 2011
[Case Application 2] Passed Signal While the world's biggest maker of mobile phones, Nokia, the Finnish business, is a " powerhouse in Europe, Asia and Latina America, with…...
Record of Business & Commercial Marketing Emerald Article: A brief review of promoting accountability, and a research plan Malcolm McDonald Article info: To cite this…...
Analyse the Ways in Which Discourse Structure and Lexis, Focus on Purpose, Market and Text message. Essay
In the conversational transcript, there are many uses of discourse structure. These include adjacency pairs, hesitations, false begins, conversational injectables, overlaps, disturbances, co-operative signs, discourse markers and phatic speech. Firstly…...
4 main characteristics of services plus the marketing strategies designed for the services organization Dissertation
Qns: Go over the some major qualities of companies and the sales strategies available for the service business. Qns: What are the primary dissimilarities between services? Give examples that emphasize…...
PRODUCT Is something that is viewed as in a position of satisfying a need or perhaps want. It can be an object, service, activity, person, place…...
Desk of Items LIST OF FIGURES2 1 . INTRODUCTION3 2 . ROMANTICISM4 2 . you Romanticism as a movement4 installment payments on your 1 Qualities…...
Week 10 – Vertebrates Today • This week we cover the spiny dogfish. • In this week, examine pages 27, 35-38, 45-50 in lab manual.…...
Jad Farha Critical Evaluation: In the First Child By simply: Ben Jonson The entire poem lampoons the concept of the an existing…...
Ignacio Arreguin Digital Color Theory Claudia Torres-Ambriz September 14, 2013 Graphic Design Color theory in graphic design can be primarily about how color portrays…...