1- The ice cream industry 4 a- Definition 4 b- Competitors 4 c- Market analysis 5 2- Ice cream industry analysis: Porter’s five forces 5 1- Power of buyers 5 2- Power of suppliers 6 3- New entrants 7 4- Substitutes 8 5- Rivalry 8 3- Criticism of Porter’s model 9
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British consume a yearly average of 8,5 litres of ice cream which is way behind United States, New Zealand or Denmark where consumption surpass 20 litres. Increasing the UK consumption of ice cream should be easy if we think about the discrepancy between these quite similar markets. The ice cream industry has reached a mature stage, however the ice cream consumption keeps on increasing and generating profit. The sales rise is mainly due to promotional activity and line extensions.

But if growth in the market appears it would more come from value sales rather than volume sales. As a matter of fact consumers are almost not eating more ice cream, but they are spending more money for ice cream with more elaborated ingredients (hence the emergence of brands such as Ben & Jerry’s or Häagen Dazs…).

There are three big competitors which are solidly rooted on this market thanks to their famous marketed brands.

Ice cream manufacturer have to face various stakes which will be highlighted thanks the Porter’s analysis. Michael Porter’s method brings a " theory of the sector ", based on a industry modelling which can be open to criticism, but which allows the decision-makers to analyze and to understand their market, their strengths and weaknesses by connections to the actors, and so to choose a aware strategy. From my point of view, it’s the clearest and the most complete method compare to PEST(LE) which analyse more the macro-environment of a company.

1- The ice cream industry

a- Definition

The ice cream market “consists of the total revenues generated through the sale of artisanal ice cream, impulse ice cream