Group Assignment

Derrick’s Ice Cream – Write Up

Marketing Management - 2

SUBMITTED TO-

Prof. Mayank Yadav

FORE School of Management

SU

SUBMITTED BY
Group 4 | IMG-13 | Section E

Kumar Harsh (133081)

Lakhsmi Satya (133082)
Manya Juneja (133083)
Nitika Ahuja (133084)
Pankaj Chandna (133085)
Parijat Saha (133086)
 Derrick’s Ice-Cream

Q1- Perform a SWOT Analysis for Derrick ice cream

Q2. Assess the marketing growth opportunities available for
Derrick with all the six key customers.

Growth opportunities available for derrick’s ice-cream based on the Ansoff

matrix:

1. Ardon’s Wafers
Ardon’s Wafers is a valuable customer as they play an important part in
increasing the sales of the company. They are highly compatible with the
company as they have predictable demands and requirements, thus
providing a high growth opportunity to the company which will in turn
help in increasing the market share.

2. Butler Ices
Butler Ices working from a remote location and also demanding free
deliveries in turn leading to an increase in the costs. Along with this they
require large discounts on volume orders. With these difficulties, they
don’t even have a huge contribution in increasing the sales of the
 company. Thus the company should allocate their resources to capture
other customers rather than working on keeping Butler Ices.

3. Cahill’s Cone
Cahill’s Cone is the best customer that the company has as they always
pay on time and require low discounts and commissions. Also, they do
not require any special packaging. Along with this their JIT scheduling
system is highly compatible with that of the company. Thus, it is essential
to retain this customer. A new product launch can also be done which will
provide a huge prospect for increasing the market share.

4. Donleavy’s Ices
Donleavy’s Ices is a troublesome customer as they have a habit of paying
late and at the same time require daily deliveries leading to an increase in
cost. They also threaten to buy from other companies if their demands are
not met. The company should make certain standardised policies
regarding the payments and deliveries applicable to all its customers.
Donleavy’s contributes quite less to the sales of the company thus it
should not spend huge amounts to retain it.

5. England Wedges
England Wedges don’t have huge demands and require minimal
discounts. They don’t require any visits from Derrick’s personnel. Also,
they have a decent contribution to the company’s sales thus they should
be retained and served with good quality services.

6. Frankston chocs
Frankston Chocs even though have high requirements for administrative
assistance, they are a very big customer of the company. Thus, the
company should focus on figuring out ways to improve the procedure and
ways to take care of complex orders. Derrick should work closely with
Frankston to find solutions to the problem and retain them.
Q3-Develop a portfolio for resource allocation to different
customer groups

Applying the BCG matrix, we can find the customer profitability matrix:

Customer Market Relative market

Share share
Ardon’s Wafers 19 0.76
Butler Ices 12 0.48
Cahill’s Cone 25 1.25
Donleavy’s Ices 9 0.36
England Wedges 14 0.56
Frankston Chocs 20 0.80
Resource allocation on the basis of this matrix and requirement analysis:

Cahill’s Cones: They are the biggest customers of Derrick’s Ice-Cream. They
have a unique inventory holding system which is the best in business. They also
use the JIT system which is also used by Derrick’s. Cahill’s Cones have a
reputation of paying on time. They don’t ask for huge discounts and special
packaging. The BCG matrix to proves that they are “Star”. Hence, all these
points prove that Derrick’s Ice-Cream should focus most on Cahill’s Cones.
Cahill’s cones will generate maximum profit for Derrick’s with easy business
transactions.

Adron’s Wafers & England Wedges: Adron’s maintains large regular orders
and don’t ask for margins based on volume. They employ standard packaging
which results in low cost. Adron’s has predictable demand which makes it
easier for Derrick’s Ice-Cream to cater to their demands. England Wedges also
orders in bulks but their demand is on an infrequent basis. England asks for
minimal discounts and requires fewer visits from Derrick’s personals. Hence,
these two customers incur low costs according to the BCG matrix. They have
good market share too. This makes these two customers the second most sought
after groups for Derrick’s. Derrick’s should allocate more optimum resources to
this customer group.

Rest of the Customers: Frankston Chocs generate complex orders. Donleavy

Ice’s always pay late, ask for maximum discounts and have the lowest market
share among all. Butler Ice stores are 150 miles away from Derrick’s Ice cream
and they ask for customized packaging. All these factors put them under the
“Dog” category in the BCG matrix. This means that they incur high costs with
respect to their market share. Hence, Derrick’s Ice-Cream should allocate the
least amount of resources to these customers.

THANK YOU!