Snogurt Frozen Yogurt

CHAPTER FIVE:
Industry and Marketplace

Chapter Five: Industry and Marketplace

5.1

The Industry

5.1.1 The Definition of the Industry

The Food and Beverage Industry covers a wide aspect of retail businesses in the world as a large share of the market consists of businesses that are involved with chain restaurants, cafes, food outlets and many more. The Food and Beverages sector is one of the most important industries in the world and contributes greatly in every countrys growth of economy and developments.

The Food and Beverage Industry is worth approximately US 4.22 billion and employs about 4.4 million people working in Europe Union alone. The structure of the sector is composed of large companies on one hand and a mass of small and medium companies on the other.
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Chapter Five: Industry and Marketplace

Establishments in this subsector have special equipment (e.g., freezers, refrigerated displays cases, refrigerators) for displaying food and beverage goods. They have staff trained in the processing of food products to guarantee the proper storage and sanitary conditions required by regulatory authority. Food and beverages are further subdivided into nine groups covering meat, fish, fruit and vegetables, fats, dairy products, grain mill, starch products and prepared animal feeds.

5.1.2 Shape of the industry

Through the growth of sales in dairy products, frozen dessert tapped in the market and starts to shape the communities in all countries including Malaysia. The demand for frozen desserts such as ice-cream and yogurt is reflected not only in the increased plant capacity and total production but also in the increasing proportion of the total milk supply being diverted to the manufacture of frozen dairy products. In 1930, 3.1 percent or 353.5 million gallons of milk went into the frozen dairy products : in 1960 the figures were 7.9 percent and 1,100.3 million gallons. That said, no other major dairy product has achieved this growth of rate before. If there is anything that be counted on in the frozen dessert industry, it is that everything old will be new again. Consumers will demand diet products, then reject them, then rediscover them; frozen novelties will get bigger, than smaller, then bigger again, frozen custard will sink into near oblivion over the years, only to re-emerge as a steadily growing category with authenticity. So it should be no surprise that frozen yogurt has become the most competitive category in the industry, replicating the exciting period in the late 1970s and early 1980s when ice cream shops and packaged ice cream manufacturers were falling over each other in the rush to bring their own frozen yogurts to the market. Leading the charge are new brands like Red Mango, Pinkberry, and Yolato; as well as revitalized TCBY, one of the few survivors of the earlier frozen yogurt explosion. The current frozen yogurt revival, still relatively new, differs from the categorys explosion in the late 1970s when the product was essentially positioned as low fat and no fat alternative to ice cream. This time around, frozen yogurts are being sold on the basis of their health value, specifically due to the presence of live probiotic cultures.
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Chapter Five: Industry and Marketplace

5.1.3 Development of the Industry

Americans may be more aware of their diets these days, but they certainly have no less of a sweet tooth. Frozen yogurt is an innovative way for customers to have their cake, and eat it too. Although the frozen yogurt franchise industry suffered a decline in the late 1990s, it is making a comeback with a new generation of flavors, toppings and store settings. With this new wave of frozen yogurt franchises growing, new franchises will fine that this industry is nowhere near its freezing point. 1980 marked the beginning of the first wave of success in the frozen yogurt industry. For the next decade, frozen yogurt franchises rose up in every street corner and mall plaza, dominating Americas industry for frozen dessert. However, after 10 years of froyo madness, the most popular frozen yogurt franchises like TCBY and I Cant Believe Its Yogurt began to lose ground to competing ice cream shops and coffee houses. According to the Agricultural Marketing Resource Center, retail sales of frozen yogurt fell between 1998 and 2003, while ice cream sales grew 24%. However, with new frozen yogurt franchises like Yogurtini, Pinkbery, Tutti Frutti, and The Fuzzy Peach blending innovative varieties of flavors and toppings, the frozen yogurt industry is now back on track and more popular than ever before. Focusing on providing delicious yet diet-friendly treats to its health-conscious consumers, this new hybrid of frozen yogurt is tangier, more tart and lighter than original frozen yogurt products. Nowadays, customers arent just coming in for the frozen yogurt, but its other chill factors such as highend furniture, Wi-Fi, flat-screen televisions, and etc.

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Chapter Five: Industry and Marketplace

5.2

The Marketplace

5.2.1 Current Condition of the Marketplace

Nowadays, there are various products currently on the market for those who are healthconscious; looking for something to satisfy their sweet tooth without destroying their healthy diet. The market place for frozen dessert, more specifically, for frozen yogurt is now blossoming and is having an intensive competition with other brands due to highly demanded consumers. Currently, Snogurt isnt places as highly promoted and also selling their product at a slightly cheaper range than its competitors Advertising and promotion is critical for frozen dessert products, in order to create brand awareness of new products and build brand loyalty among consumers. Print media such as flyers and buntings are very common. According to the industry, the market is saturated with many different types of products, and in the long run, established brands that emphasize quality and service will have the edge.

5.2.2 Changes in Marketplace

Positive More competition in the market lead to more effort in innovation, thus boosting growth of the industry Come with fresh new ideas to promote the product in the market to boost the sales.

Negative More competition in the market leads to more loss in profit and cost in promotion and advertising
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