Posted: October 17th, 2013





Silk Company

Within Brazil, the bulk of the consumers of ice cream products have a heightened awareness of healthy food products. To that extent, many of the consumers of ice cream products have slowly drifted toward healthier options amid the rising medical consequences such as diabetes and obesity. However, the Brazilian consumers are also largely impulse buyers and regularly indulge in luxury products. These two features make Brazil the ideal location to set up an ice cream business. The climatic conditions are also warm and humid providing the best conditions for ice cream consumption.

While the Brazilian population is perfectly willing to spend a considerable amount of money on ice cream products, several issues arise in this particular target market. The younger generation made up of people from twelve up to thirty are by far the largest section of the population that consume ice cream products. Financially, most of the members of this segment cannot sustain their ice cream consumptions at a constant rate. However, introducing healthier products within the market would mean a slight increase in prices that can discourage consumers from purchasing ice cream. Therefore, equilibrium must be established between increased prices and inclusion of healthier ice cream options. The largest competition within Brazil originates from Kraft Food Company that owned about 10% of the total market share as of 2010. The company had engaged in an aggressive advertising campaign that had captured many Brazilians. Their brands were also very significant and strong for example Lacta and Club Social that were considered high quality ice cream products globally. However, a factor that overrides all these segment-marketing approaches is the issue of organic ice creams. All the products sold by Silk Company should be natural and organic to ensure that they attract health-conscious consumers that form a large number of the Brazilian population.

Marketing approach

            Marketing ice cream products in Brazil will require a multi-faceted approach since the country is subdivided along financial and regional lines. The North East area of Brazil will require more investment as the region has grown economically and the people have developed an interest in luxury goods although the market is largely unexploited. The South East region toward Sao Paolo is flooded with prominent ice cream companies such as Kraft Foods and Brazilian Ice Cream Solutions and therefore, investing in this region will require increased advertising and other forms of marketing to ensure the company attains a strong foothold in the market.

Personal Reflection

            The Brazilian ice cream market can be easily tapped by premium brands as most of the people still purchase little ice cream products. A close association between reputable leading shops and supermarkets can easily promote a new product. Such unions can allow a company to entice current consumers of a certain brand to make a switch. The Silk Company can also introduce smaller sizes of their products to grasp the low-income consumers that may want ice cream products but are unable to afford the large packages. Smaller sizes that typically weigh 100 grams have been shown to boost impulse sales in areas where consumers have low purchasing power.

I have also realized that performing an in-depth investigation into emerging trends in the developing and developed countries will greatly contribute toward effective marketing approaches. This is because the health concerns that are currently significant in the Brazilian food sector took center stage in Europe and the United States three years earlier. Therefore, market research will definitely yield relevant information in the ice cream industry.

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