Healthy Ice-cream House

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Healthy Ice-cream House

• Healthy Ice-cream House

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Healthy ICE-CREAM
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History of Ice-cream

• Back to at least 4 B.C.
• Early references on Roman Emperor Nero (A.D.
  37-68) King Tang (A.D. 618-697) of Shang
  Dynasty
• Ice-cream was likely brought from China back to
  Europe and served in Italian and French royal
  courts

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Evolution of ice-cream business in Hong Kong 1

• 1950s
• Ice-candy was much popular than ice-cream among
  students as it cost only 10 cents
• 1960s
• Mister Softee emerged in 1969
• Dairy Farm set up an ice-cream house, but the
  result was not satisfactory

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Evolution of ice-cream business in Hong Kong 2

• 1980s
• Kowloon Dairy Ltd. bought Mochi Ice from Taiwan
  and Japan
• Mochi became one of the most popular ice-cream
  products
• 1990s and onwards
• Many foreign ice-cream brands, e.g. Haagen-Dazs,
  Ben Jerry, Pappagallo and New Zealand Natural,
  join the local competition

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Product Ice cream

• A product containing 10 milkfat, 20 total milk
  solid, safe and suitable sweeteners, and defined
  optional stablizing, flavour, and dairy derived
  ingredients.
• Low fat
• Containing not more than 3g milkfat
• Non-fat
• Containing less than 0.5 milkfat
• Reduced fat
• Made with 25 less fat than the reference
  ice-cream

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Business Models

• Foreign Products
• Vs
• Own Products

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Business Models Foreign Products

• Case Study New Zealand Natural
• Franchising
• a system of distributing a product or delivering
  a service in return for a fee
• Franchisor
• company that develops the product or service and
  that appoints others to use its name and sell the
  products or service
• Franchisee
• party that contracts with the franchisor and is
  granted the right to market the goods or services

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Business Models - Foreign Products

• Basic features of a typical franchising
  arrangement
• The franchisor allowing the franchisee to use its
  name or brand,
• The franchisor exercising continuing control over
  the franchisee,
• The franchisor providing assistance to the
  franchisee, and
• The franchisee making periodical payments to the
  franchisor

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Business Models - Foreign Products

• Case Study New Zealand Natural
• Wave Front Enterprise Ltd operates as the
  Master-Franchisor for the brand and products of
  New Zealand Natural in Hong Kong, Macau and
  Shanghai
• master franchisor involves in staff training for
  sub-franchisees and purchasing
• Sub-franchisees have to pay the master franchisor
  a lump-sum fee in joining fee and a portion of
  monthly total revenue of the business

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Business Models - Foreign Products

• Case Study New Zealand Natural
• Advantages and Disadvantages of Franchising
• Master-Franchisor
• gaining additional outlets for the distribution
  of products and services without many costs
  associated in establishing new facilities
• providing immediate revenue
• must disclose much historical and financial
  information about the franchise business.

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Business Models - Foreign Products

• Case Study New Zealand Natural
• Advantages and Disadvantages of Franchising
• Sub-Franchisee
• Acquire an interest in an established business
• Franchisors usually provide training and
  purchasing benefits not normally available to
  independent small businesses
• Be granted the right to use a recognized trademark

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Business Models Own Products

• Case Study Kida Garden
• Selling own products
• Advantages
• Enjoy ultimate profits
• Enjoy better flexibility and innovation in the
  business
• Product development
• Marketing and public relations strategies
• Pricing
• Organization culture
• Achieve personal mission

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Business Models Own Products

• Case Study Kida Garden
• Selling own products
• Disadvantages
• Higher cost in research and development (RD)
• Purchasing power and pattern
• Flavour
• Higher training cost
• Skills development, e.g. production and customer
  servicing
• More efforts more market position

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Business Models

• General Requirements
• Employees - Customer Service Representatives
• FB sales/customer servicing experience is
  preferred
• Neat healthy appearance
• Courtesy
• No particular academic background required
• Training of knowledge on company products and
  procedures is offered

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Business Models

• General Requirements
• Licenses
• Food License
• Import License
• Licesed Frozen Confection Factories

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Trends of ice-cream business in Hong Kong

• Market Players
• Customers Preference
• Opportunities Threats
• Outlook Development

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Trends of ice-cream business in Hong Kong 1

• Market Players

Appolo (HK) Ben Jerry (Israel) Kida Garden (Japan) New Zealand Natural (NZ) TCBY (US)
No. of shops in HK gt40 8 1 5 9
Products Ice-cream ball, milk shakes, Sundae, Ice-cream cakes, Ice-cream biscuits, Yoga-bar and juice Ice-cream ball, milk shakes, Sundae, Ice-cream cakes, Ice-cream biscuits, Yoga-bar and juice Ice-cream ball, milk shakes, Sundae, Ice-cream cakes, Ice-cream biscuits, Yoga-bar and juice Ice-cream ball, milk shakes, Sundae, Ice-cream cakes, Ice-cream biscuits, Yoga-bar and juice Ice-cream ball, milk shakes, Sundae, Ice-cream cakes, Ice-cream biscuits, Yoga-bar and juice
Target customers Office Ladies, youth and high-purchasing power group Office Ladies, youth and high-purchasing power group Office Ladies, youth and high-purchasing power group Office Ladies, youth and high-purchasing power group Office Ladies, youth and high-purchasing power group
Key emphasis on products Low fat calorie, fresh fruit Low fat no sugar Low fat milk, no colouring preservative No artificial flavour, colour and animal fat High calcium, low fat and produce vitamin B
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Trends of ice-cream business in Hong Kong 2

• Customers Preference
• Survey results 103 respondents
• Most favourite brands of ice-cream are
• Haagen Dazs
• Dreyers
• Dairy farm
• TCBY

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Trends of ice-cream business in Hong Kong 2

• Customers Preference
• Survey results
• How much are you willing to spend on ice-cream
  per purchase?

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Trends of ice-cream business in Hong Kong 2

• 2. Customers Preference
• Survey results
• Are you willing to switch to have healthy
  ice-cream?

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Trends of healthy ice-cream business in Hong Kong
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• Opportunity and Threats
• Opportunities
• Changing food and beverage culture
• East West
• Willingness to purchase quality dessert
• E.g. Godiva and Desert Buffet
• Trend of healthy products
• CEPA
• Threats
• Keen competition in terms of products and prices
• Rapid change in taste on trendy food

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Trends of ice-cream business in Hong Kong 4

• Outlook and development
• 2nd line product
• Products available to supermarkets and convenient
  stores
• Product development and diversification
• Ice-cream cake, drinks and pudding
• Marketing and promotion
• Advertising
• Sponsorship
• Partnership
• Dinning in service

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Question Answer
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Thank You !!
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References