1. Analyze which uncontrollable external factors that matters for The Danish Ice-cream market. Focus on the 3 most important factors. (30% - about a page)
2. Analyze the competition in the Danish ice-cream market. If some factors are unknow, you have to make assumptions about it. (40% - about 2 pages)
3. Discuss potential growth strategies for one of the companies. What company you choose to focus on is optional. (30% - about a page)
- Appendix 1
- Appendix 2
When analyzing different factors affecting a specific market, there are both internal and external factors. Furthermore, there are controllable and uncontrollable factors.
In this case the 3 most important factors affecting the ice cream market are environmental, social and economic factors, all being a part of the Pestel analysis model.
When talking about the ice cream market, external factors are quite important. Most people define ice cream as a summer food and usually think about good weather when thinking of ice cream.
Environmental factors are therefore very important for the ice cream industry in general. With that being said, it’s an uncontrollable external factor, meaning that the industry can’t do anything about it, nor control it.
In regard to the environmental factor, weather patterns influence ice cream sales and packaging demand; the hotter the temperatures, the higher the demand; nevertheless, as the summer progresses, dessert sales are expected to grow even more.
As more and more people are vaccinated and most of the restrictions are eased current value sales of both unpackaged and impulsive ice cream are expected to outperform the previous year in 2021.
Because the lifting of the lockdown occurs during the summer, people are more likely to socialize and enjoy ice cream, which explains the increase in sales of ice cream in appendix 1.
Since travel restrictions also ease, more tourist will arrive in Denmark. This will result in increased consumption of ice cream.
Furthermore, as a result of COVID-19 many customers would definitely prefer to go for walks or relax in parks rather than go to bars to avoid to the virus.
These sorts of activities, especially during the hotter months, are known to increase unpackaged ice cream and impulsive ice cream eating as a method to remain cool.
Organic and vegan ice cream, like many other snack items, has seen a rise in popularity in Denmark making it a social factor affecting the industry. Ice cream will continue to follow the country's overall organic and vegan boom.
As Danes grow more concerned about their own health, particularly in the aftermath of the epidemic, they will likely convert to organic and vegan foods, as well as seek for better options for items they only eat for pleasure.
Consumer demand for organic and vegan goods is projected to lead to the introduction of additional organic and vegan ice cream products.