Question

Is JellyTip ice cream the least favorite ice cream of TipTop NZ? why?

please explain related to BCG matrix that it is in DOGS column( low in market growth and market share)

Answer 1

TipTop is the oldest ice-cream brand in Newzeland. It is the most favourite brand of ice-cream eater. The company provides the best ice-cream in varieties of flavours. It is Auckland based brand supplying a range of ice-cream across New Zealand. It is a subsidiary of Fonterra group.

They are in Bulk, Novelty and Tub form ice-cream supplier. New Zealand is the second largest consumer pf ice-cream per capita. Jellytip is a novelty choco bar ice-cream. It is launched in 1951.

In Novelties Trumpets is the leading sub-brand and second Popsicles and followed by Jellytip.

In the late 20th century, the world was following synthetic colours and Trumpets and Popsicles novelties were launched.

Popsicles were supported by advertisement and target consumer were girls, so the sale was driven towards Popsicles. It was also launched with The coolest and most refreshing brand. It was appealing to an older kid.

The technical reason for low sale of Jellytip was of it was melting too fast in hand while eating the ice-cream. So it was a challenge to nibble all chocolate part of the ice-cream without whole ice-cream crumbled. So it is the least favourite sub-brand in Novelties. Later freezing of ice-cream improved and this brand was re-focused.

BCG Matrix is on two Parameter-

Horizontal Line states about Relative Market share

Vertical Line states about the Market growth rate.

It is divided into four quadrants.

1.High growth rate-High Market share -Those brands fall under this quadrant is called a star.

2. High growth rate -Low Market share - Those brands fall under this quadrant has question mark strategy.

3. Low growth rate -High Market share - Those brands fall under this quadrant is called a Cash Cow brand.

4. Low growth rate- Low Market share-Brands fall under this category considered as Dog.

Jellytip is the third-largest sub-brand in Novelty segment. It has a lower market share and low growth rate. So it falls in Dog Category. Since freezing technique is improving, so there will be a case of higher growth rate and may shift in the first quadrant.