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UK Ice Cream Industry

Organizational Structure of Kelly’s Cornwall

OVERVIEW AND CLARIFICATION OF THE TOPIC

Kelly of Cornwall ice-cream comes in different flavors and textures. This is a Cornish premier ice-cream brand that is also called as the pioneer in Cornish clotted ice-creams. This ice-cream is known for its quality ingredients Cornish milk and clotted cream. The company started off its business with its classic flavor vanilla about a hundred years ago. Kelly sales of this company declined to a great extent in 2006 after which it was acquired by R&R and this acquisition boosted its sales prominently (Kessler, 2009). According to Euromonitor annual report, its sales have increased by 282% after 2010 and now this brand is getting immense appreciation and recognition in the UK supermarkets including ASDA and Tesco. However, even with this progress, Kelly is still considered to be lagging behind its competitors including Ben and Jerry and Haagen Dazs (Kessler, 2009).

Ice cream market in the UK accounts for 6.2 percent of European ice-cream market value and this sector is increasing with the passage of time generated total values of £ 1,606.6 million at the end of the period (Euromonitor, 2012). The market value has grown by 28,9% from 2007 to 2012. The industry is maintaining sales, regardless of economic situation and the rising price of raw materials, such as sugar, milk and palm oil, as well as consumers moving towards more premium product and high quality ice cream. Sales in the UK ice cream market are forecast to increase continuously in the next two years to reach £ 1,748 million in 2014. Growth may initially be influenced by the rise of premium ice cream, as well due to economic recovery (Mintel, 2012). Ice cream market is aggregation of impulse ice cream, take-home ice cream, frozen yoghurt and artisanal ice cream. The definition of each subsector will be providing in the appendix. According to euro monitor take-home ice cream sector accounts as the largest share in the market, £ 908.5 million in 2012 (Ice Cream Production in the UK: Market Research Report, 2012).

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The main aim of this document is to develop a campaign to strengthen the current position of Kelly’s Cornwall ice cream in the market of UK, targeting people of age group 25-34 years old from the social class of ABC1. In this context the three main objectives of this IMC campaign are as follows:

  • To increase awareness of Kelly’s of Cornwall both new and existing customers within one year campaign.
  • To change consumers’ negative perception associated Kelly’s of Cornwall as boring brands among younger customers.
  • To encourage customer’s trial online store by shop through Kelly’s of Cornwall website online.
  • To create strong engagement among existing and new customers.

2 A 2.0 HISTORY OF THE ORGANIZATION

2A 2.1 Kelly’s Cornwall

Kelly’s Cornwall has a long dated history and has been a family business for over 100 years in UK. It is a leading brand that manufactures Cornish ice-cream and is a founder of the renowned Cornish clotted ice-cream in the market. In 1930s one of the farmer named Philips moved to UK from Italy and settled down in St Austell, his daughter Florrie married Lazero who finally took over the family business of ice-cream and continued further. The name of the family business was further changed into ‘Kelly’ (Kelly’s Cornwall, 2013). The company produces over 9.5 million liters of ice-cream in a year and is available all throughout the nation with the help of major supermarkets.

Kelly ice-cream is a favorite dessert of people in the UK. The products of Kelly are highly fresh and hygienically made and come in many variants. Prices of the ice-cream are as per its competitors in the market. The equally popular amongst people of all ages and has been distributing its product nationwide however, there is a need to bring innovation in marketing campaign by using different channels and approaches form marketing. The company has made tremendous business after its acquisition by R&R and it has introduced many brands including Chokablok, Nestle Potz and Tesco. This brand has acquired 25percnet shares of YooMoo international (R&R, 2011, p. 5). However still there is a long way to go because competitors of Kelly ice-cream have already adopted some marketing approaches that have benefited them a lot. For instance, according to Eurominitor report, Uniliver carries 26% of retail sale values and is considered as a brand that maintains strong position in the market.

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2A 2.2 Organizational Structure of Kelly’s Cornwall

Kelly’s Cornwall has been producing Cornish ice-creams over three generations and offers range of flavors in ice-cream. In the late 19th century when the company was launched it offered products mainly of vanilla, but now it has included flavors such as Cream and Strawberries, Mint chop chip, Caramel swirl and Honeycomb (Industry Sector: Ice Cream Van, 2011). The main secret of Kelly’s products are the quality of its ingredients, the company uses fresh Cornish milk and clotted cream to make delicious ice-creams.
Currently, the organization is involved in producing range of products in ice-cream and the fourth generation of family is involved in business. The family is involved in manufacturing ice-creams for over 100 years and the family came from Italy to UK and started selling ice creams to the local people. The products are made with modern equipments and the company is now doing business Sainsbury’s as well. In 2003 a relationship was built with Sainsbury’s as a part of supplier development scheme in order to help small producers in south west (Cream of the crop – Kelly’s Cornwall ice cream, 2011).
This scheme aided Kelly’s to receive suggestions and tips on how to progress and enlarge its business. Kelly’s Cornwall also won a contract in 2003 to supply 39 local Sainsbury stores to supply its products. Later that year the company won the board with the taste awards for its summer fruit and cream ice-cream, Mocha swirl and Coffee latte.

2A 2.3 Business activities

The ice cream industry of UK has managed to keep the business in cool position in spite of fluctuating revenue and difficult trading situations in the country. The industry has faced growth with various product innovation and implementation of modern equipments for manufacturing purpose (Addy, 2012). But have been influenced due to some factors like rise in global warming and poor weather conditions have forced the industrialists to redesign their products towards the take away home segment to increase the demand.
Kelly’s Cornwall has also faced tough situations due to increase in inflation rate in the country and the changing price of ingredients like milk and sugar that ultimately impacts on the revenue of organization. But some of the researches have shown that in the previous five year through 2012-13, the profit of industry has increased at an annual rate of 0.5% to reach £353.9 million (Kelly’s revamps outlets, 2010). The scope of business for the company is also affected due to changes in tastes and preferences of consumers and the current global trend of health conscious food.

The company has redesigned its many of the products and has introduced products with organic contents and also focus on consistently changing flavors of the ice-cream according to the customers’ demands and tastes (UK Market Research, 2012). The new look of Kelly’s Cornwall ice cream parlors are being revealed across the Duchy as part of a wide ranging renovated project with an amount of more than £50k. The new ice cream parlors are introduced with fresh looks which covers around 30 cities in Cornwall. Focus has been given by company on more vibrant and appealing look so that more visitors could come for purchase.
Kelly’s Cornwall has made tremendous amount of work and major investment is made in this area with the help of marketing and use of promotional campaigns in order to achieve consumer brand awareness, development of new flavors and recruitment of staff with increased sales growth (Sainsbury’s, 2012). Kelly of Cornwall is a brand that gives its consumers an opportunity to enjoy a variety of flavors and most prominent of which is Cornish clotted cream. Along with this, it also produces milk chocolate chip, honey comb, strawberries and Cornish dairy vanilla. Its take home products include 500 ml, 1L, 2L range products. At the same time, 120 ml products are also present that contain vanilla, chocolate, honeycomb, swirl and strawberries flavors. Its wide range of brands has something for everyone and thus it can satisfy the needs of customers with different tastes and likes.

Kelly of Cornwall is plentifully available all over the UK. It is present in most of the retail stores and people who like its flavors can easily buy them from their nearby stores. Its takeaway products are convenient for users in terms of product’s size and price. At the same time, its outlets that have been opened at Asda and Tesco have greatly attracted consumers and people of different age-groups are developing their affiliation with the brand. An extensive promotional activity is required for Kelly of Cornwall. The company has not yet explored different aspects of promotional activities because of which brand recognition is low as compared to its rivals. There is a need to enhance company’s image by utilizing different promotional tools including television, posters and the internet. Message communication is also an important factor. These messages must support each other and should not create confusion for consumers.

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REFERENCES

  • 5 Factors of Brand Positioning. 2008. [Online] Available at: <http://www.corporate-eye.com/blog/2008/07/5-factors-of-brand-positioning/>. [Accessed 21st January 2013].
  • Addy, R., 2012. Kelly’s saves through green schemes. [Online] Available at: < http://www.foodmanufacture.co.uk/Manufacturing/Kelly-s-saves-200-000-through-green-schemes>. [Accessed 19th January 2013].
  • Advertising. 2010. [Online] Available at: <http://advertisingaphasia.blogspot.in/2010/07/what-can-means-end-chain-teach-us-about.html>. [Accessed 20th January 2013].
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  • Craig, S. C., 2011. Consumer Decision-Making: on the Importance of Price. [Online] Available at: <http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=11963>. [Accessed 21st January 2013].
  • Cream of the crop – Kelly’s Cornwall ice cream. 2011. [Online] Available at: <http://cornwall.greatbritishlife.co.uk/article/cream-of-the-crop-kellys-cornwall-ice-cream-11848/>. [Accessed 19th January 2013].
  • DEVELOPING A CAMPAIGN STRATEGY. 2011. [Online] Available at: <http://www.ifex.org/campaigns/developing_campaign_strategy/>. [Accessed 21st January 2013].
  • Developing the communications strategy. 2010. [Online] Available at: <http://www.advertising.nsw.gov.au/advertising/planning-campaign/developing-communication-strategy>. [Accessed 20th January 2013].
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