Bulla Ice Cream Situation Analysis

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1. Market background The dairy industry is Australia’s major rural industry which had a production value of $3.4bn in 2009/10 (Dairy Australia, 2011). The sector employs approximately 40,000 people in rural farms and dairy products manufacturing and processing plants.


The first commercial ice-cream was produced in Australia in 1907 (Unilever, 2010). Streets ice-cream marked the beginning of the ice-cream industry in Australia in 1920 (Unilever, 2011). This was subsequently taken over by Unilever and is now one of the biggest and best known manufacturers with brands such as Magnum, Paddle Pop and Blue Ribbon. This was the first ice-cream available on sticks and today Magnum sells about 1 billion units per year. 2. Market Statistics Positive change in both value and volume in the Ice-cream sales (Appendix A) in Australia suggests that economic downturn ash not impacted the sales of this luxury food item. Sale has increased by about 9% in value 2 years from 2007 and about 5% in volume. However, there have been significant increases in the sales of tubs (23.2% by volume) while the sales of multipacks and desserts have declined. Again, while Nestle and Unilever have seen declining sales, Bulla’s sales in two years has increased almost one hundred percent. All other brands such as Weis and Sara Lee have seen sales decline over this period. Amongst the popular brands those of Nestle – Peters Original and Peters Light & Creamy have steadily declined. Brands such as Bulla Real Dairy, Bulla Ribbon and Bulla Creamy Classic have almost doubled in two years. Bulla Ribbon has registered the highest growth (more than 100%). 3. ...
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