The Business of Amy’s Ice Cream Trade

Amy’s Ice Creams – Background and Introduction

Amy’s Ice Cream is an ice cream company launched at Austin, the capital of Texas, United of America. “1984 – Amy’s writes a hot check to open the first Amy’s Ice Creams on Guadalupe!” (Amy’s Ice Cream Austin). Currently, Amy’s have 13 launches within the state running successfully with considerable achievements in business field without any doubts. They have won Best Neon position many times in the course of their lifetime. Amy’s Ice Cream put forward a variety of about 300 flavours which could be a dream for any of the companies in the same business as well as customers. They offer not only ice creams but even ice candies and fruit ices which are not made of milk often called as sorbet. But their marketing technique administered in case flavours is seen as the non availability of all flavours at all locations of Amy’s. The present situation of business flourish of Amy’s is identified by business analysts all around the globe. The business studies and academics usually include these strategies as a story of success in Ice Cream trade.

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Amy’s store at any location will offer all seven standard flavours identified by them. The available flavours reaching 300 will never be seen by any of their customers to be identical or mixed but unique ones. The ice creams are sold in three standard volumes. Usual usage of cold stones in ice creams companies is eliminated by Amy’s by their mixing taking place at room temperature itself. They claim that the variety range of flavours offered by them is just because of their warming technique at the time of preparation of ice creams and room temperature maintained in the course. Anyhow it remains a fact that they are being rulers of ice cream business in and around Austin in United States. Amy’s have grabbed many Best of Austin Awards since 1990 counted to 11 including six Best Neon awards and Readers Ice cream awards were given to Amy’s since 2000.

Environmental analysis

The business of Amy’s has been remarked to be a success in ice cream trade. The analysis intended through this paper is their launch in Saudi market. The situation of ice cream market in Saudi has been identified to be in a path of development giving hope for international as well as national ice cream companies. “The market for Ice cream in Saudi Arabia increased between 2002-2007, growing at an average annual rate of 6.9%.” (Ice Cream in Saudi Arabia to 2012). The increase rate of market indicated above can be kept a real time probability of success in that field. SADAFCO, The Saudi Ice Cream Factory, Dunkin Brands Inc. etc. are the leaders of Saudi Ice cream in this contemporary Saudi market. possibility of ice cream industry in Saudi forecasts on “Artisanal ice cream, Frozen yogurt, Impulse ice cream and Take-home ice cream” (Ice Cream in Saudi Arabia to 2012) by 2012 which really impresses Amy’s to expand their business to Saudi as well. These are the products which Amy’ found their success. The market segmentation and never stopping visit of foreigners give scope for increased sales and consumption in Saudi. So it can be an excellent step to enter Saudi Ice Cream business by Amy’s making use of their current business and marketing techniques and fame they achieved during their development in Austin. Hope for business flourish which is advancing each year to reach the peek by end of it can bring about competitive advantages to Amy’s. Also the rivals in Saudi for Amy’s are majorly native ice cream companies, so scope increases for Amy’s which will be an international investor in ice cream business of Saudi if entered.

SWOT

At this point of discussion on introduction Amy’s Ice Creams in Saudi requires proper analysis of entire internal and external factors accompanied by identification of strengths, weaknesses, opportunities and threats of Amy’s to bang the bell of victory in Saudi ice cream market. Situational analysis “provides a background on the factors that influence the company’s functions and performance” (Situation Analysis and SWOT 1) while SWOT analysis “is the organization of the information obtained in the situation analysis.” (Situation Analysis and SWOT 11). The situational analysis helps in identifying the external and internal factors of the organization and the strengths and weaknesses of the internal aspects along with opportunities and threats of the external environment are recognized using the SWOT analysis.

Internal factors

The internal factors of Amy’s Ice Cream are the 13 branches of ice cream shops with the staff including managers as well as workers and assets achieved in the course of their business in United States.

Strengths

The main strength of Amy’s entrance to Saudi market can be identified as their confidence attained due to success history in Austin and optimistic feel for success in Saudi market as well. Also their experience in expansion and development of strategies to face various challenges in ice cream business add to their major strengths. The scope for various types of ice creams in Saudi portrays on the customer scopes for more tastes, flavours and varieties.

Weaknesses

The first and foremost weakness of Amy’s launch is its inexperience in Saudi market as they were confined to only business in United States. In US, they were aware of all situations and possibilities of ice cream trade. The economic back up should be firm and supportive in all aspects. The scope is merely based on analysis prevailing but chance of similar a position for Amy’s similar to that in Austin cannot be a sure strategy. Maybe a foreign accepted as only a foreign initially. The possibility of wide acceptances cannot be hoped blindly as well.

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External factors

The external factors include current situation in Saudi business, economy and commerce. Existing winners of ice cream companies like SADAFCO, The Saudi Ice Cream Factory, Dunkin Brands Inc. etc. turn out to be rivals in ice cream business to Amy’s in Saudi. Though the economists may trace out possibilities, rivals can resist the entry of Amy’s to their domain. Also the governmental factors like rules on foreign companies as well as current feel for US plays important roles in Amy’s Saudi business. Based on external factors identified, opportunities and threats for Amy’s in Saudi trade scenario can be analysed.

Opportunities

The opportunities are readily available for the ice creams in Saudi especially for new flavours and make ups which are evident from rate increase in ice cream business in Saudi Arabia during recent years. Also there is a fact that Saudi customers are not completely natives of Saudi itself, but from all around the globe. The pilgrimage to Saudi as well as job opportunities attracts people from all countries to Saudi, even from US. The fame and name of Amy’s in US can be a banner for their trade in Saudi because there are people who identify them and turn out to be their advertisers to some extent. Once known about their products, they can achieve better market in Saudi. The techniques they adopted in Austin markets like throwing ice creams in public and games related to those. Trick Olympics of Amy’s can bring about opportunities due to wide spread identification due to this novel marketing technique taken on. The assets to back up Amy’s during initial situation are surplus from Austin business. So funds can never become a problem for Amy’s for their Saudi business. The multiple cultural existence and available marketing strategies can thus help Amy’s in Saudi ice cream market.

Threats

The major threat will be from the part of rival companies like SADAFCO, The Saudi Ice Cream Factory, Dunkin Brands Inc. etc. who are well experienced in Saudi market. Unlike Amy’s, rivals are able to identify possibilities of Saudi ice cream market very easily. Also they are being among Saudis before the advent of Amy’s among them. Now it is another fact that Amy’s is from US. The foreign affairs of US towards Saudi Arabia are well known to entire world. The aggression existing without any scene has created a gap in foreign affairs between them recently which can produce a negative situation of Amy’s among existing commerce sector of Saudi. So the same can become a threat to Amy’s in Saudi market. Even the rules imposed on every foreign enterprise in Saudi can affect Amy’s introduction to Saudi ice cream market. Cultural as well as social set up in Saudi is entirely different form that of Austin in United States; being unaware of these traits may pose threat at initial stages of business. As a whole, unlike Austin business there are real time challenges for Amy’s in Saudi business especially at initial stages of advent.

Marketing program

The next step in analysis on introduction of Amy’s international ice cream business in Saudi is various marketing strategies and mix. Any business finds its success in market only if strategies are identified properly and mix is appropriate for existing situation of market. Prior to any activities carried out in business and marketing, the strategies are identified and proper mix is given to those strategies hoping for success in what it has accomplished.

Strategy

The initial step in marketing program is to seek out strategies of marketing essential for existing trends of trade interested in. “A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy.” (Marketing Strategy). Only an effective plan can lead to consistent success. In our analysis on scope for marketing of Amy’s ice creams in Saudi commerce guides us to identification of various strategies possible. The strategies are recognized after different investigation procedures as done through above methods. The identified internal as well as external influential traits for Amy’ Saudi ice cream business all contribute to appropriate strategically built marketing plan. The major position for marketing strategy leads to recognition of proper mix of strategies. The defining and analysis of four ‘P’s of marketing strategies namely product, price, place and promotion become significant.

Product

Products in Amy’s business are ice creams of different flavours and varieties like dairy products, sorbet, ice candies etc. The flavours of Amy’s ranging to 300 in number can provide chance for Amy’s in Saudi market. The ice cream ranges of Artisanal ice cream, frozen yogurt, Impulse ice cream and Take-home ice cream are already under Amy’s menu, which are actually finding business in Saudi. 6.9% increase rate of ice cream business as indicated in initial discussion can bring about a shift from existing flavours to some novel trends. The offering from Amy’s can touch groups of children to a greater extent as their products always try to be in attractive and catchy packing styles. This can bring about trend in Saudi for Amy’s ice creams as main consumers of ice creams are children itself.

Price

Pricing strategy is at times ignored fraction in the course of marketing mix. They can bring about tremendous influence on profit, so should be placed at equal priority as other three ‘P’s. The increased or reduced price of products can bring about unsuccessful step in marketing of products. Price can lead to a change in coarse boundaries and trade quantity of business. In any case the expense should be met with sales of the product along with possible profit. Amy’s advent in Saudi market can be viewed as an entrance to international ice cream market of Saudi. So pricing should be done in such a way that it contributes even to others strategical mix. Here, pricing should be made in comparison to rivals of Amy’s in Saudi market. Since it is start in Saudi, better to keep same or a little lower pricing than others of same field. Increase in price than existing brands can lose market for Amy’s. Always pricing is determined by analysis on position of brands. Free home delivery and earlier delivery will help much in Amy’s business in Saudi. When considering both promotion and pricing strategies together, lower pricing for a short period will do well for Amy’s to achieve market open for easier expansion.

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Place

The selection of the place for marketing and sales is another important strategy to be taken care of while planning strategies of business plan. The places where products can be easily marketed have to be effectively determined so that products get exposed to targeted segments of marketing for purchase or promotion of the same. In the case of Amy’s ice creams, the priority should be given to the areas crowded with people who are ready to spend time in consuming ice creams or wish to buy those. Places should be of convenience and site of relaxing and enjoyment in case of parlours selling ice creams and accommodating people for having them. There should be a pleasance will do well for Amy’s place and infrastructure. Similar to price, place should as well focus on its possibility for promotion of Amy’s business in Saudi. The place selected by Amy’s should attract the tourists and foreigners in Saudi effectively so that it can flourish in international levels easily. The selection of areas by Amy’s must focus on cultural and societal aspects of Saudi in depth.

Promotion

The next important marketing strategy is promotion. Promotion includes various steps executed by a firm to make the target groups aware of their prevalence in market among the existing rivals. Effective promotion always tries to convince people to make use of their products and services. Economical banner is a very effective promotion and the advertisements accompanied will bring about better results. The promotion should be influential for attracting the target groups. In the case of Amy’s ice cream product can bring about promotion as indicated under product due to attractive packages they do for their products. The place selected for Amy’s outlets will add to promotion as people opt for better situation at ice cream parlours. Again US nationals aware of Amy’s success living in Saudi will be helping much for Amy’s promotion. They can create their own consumption as well as their known people. The Trick Olympics adopted by Amy’s in their development in Austin can bring about attention of people towards it. Extensive levels of advertising as well can become a successful promotion for Amy’s; fortunately catchy ideas are already inherent with Amy’s which was their key for success in Austin to considerable extent.

Financial data and projections

The financial data and mathematical projections for activities of planning budget of a firm are of much significance. Amy’s case should take it up as much more important as they are newly entering to business in Saudi ice cream business. “Central to the task of preparing a set of projections is the construction of a mathematical model to reflect the finances and activities of a business.” (Business Planning Papers: Preparing Financial Projections). Similarly, Amy’s as well has to identify and develop their own projections with many of existing mathematical approaches of financial projections adopted worldwide. “Sales minus Costs equals Profits (i.e. S – C = P expressed as a formula) is an example of a very simple model for deriving projected profits from assumptions about future sales and costs.” (Business Planning Papers: Preparing Financial Projections). The above shows an approach to mathematical applications in budgeting procedures of business. Amy’s Ice Creams should focus currently on major aspect of keeping a track on Saudi ice cream business. Rather than a profit motivated plan, a business capturing is to be focussed. So the plan of budget must create an initial approach of promotion for a predetermined span of time followed by profit added loom. This can add to probability of success for Amy’s Ice Creams in Saudi market. The source for finance for Amy’s Ice Creams in Saudi can be attained from their business already achieved in their home place Austin in United States.

Conclusion

The investigation on Amy’s Ice Creams’ entry to Saudi ice cream market has led to identification of Amy’s as well as Saudi ice cream market. The internal and external factors probably faced by Amy’s are analysed along with remedies and scope available for challenges and threats in business for Amy’s. The expected up rise of ice cream industry in Saudi has brought about optimistic feel for Amy’s triumph. It can be a success for Amy’s, only if they meet all essential requirements of marketing and finance in Saudi commerce. The marketing strategies identified and their experience of successful business in Austin brings up their expectations. Trick Olympics and catchy packing of Amy’s products can bring about change to a considerable limit to their promotion. The financial plan as well as marketing plan should remain as a substantial support for Amy’s success history. But the fact of governmental dealings accompanied by foreign affairs is to be met with confidence by Amy’s Ice Creams in Saudi. Once found the target can lead Amy’s to repeat their success in ice cream industry in Saudi as well, thus meeting their goal.

Works Cited

Amy’s Ice Cream Austin. Yelp. 2010.

Business Planning Papers: Preparing Financial Projections. Invest-Tech Limited. PlanWare. 2009.

Ice Cream in Saudi Arabia to 2012. Research and Markets. 2009. Web.

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Marketing Strategy. 2010. Web.

Situation Analysis and SWOT. UF Florida. 2010. Web.

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