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+ Cow Brothers Premium Ice Cream
Case 9: Cow Brothers is a maker of super-premium ice cream, .ow-fat ice cream, .ow-fat
yogurt and sorbet. Its products are high qua.ity and the company uses on.y natura.
ingredients. Cow Brothers products are distributed nationwide through supermarkets,
grocery stores, convenience stores, franchises and company-owned ice cream shops and
restaurants.
Cow Brothers has 30 f.avors and se..s its products in one-pint containers. It a.so has sing.e
servings on a stick.
Cow Brothers has strong brand recognition. Its “Have a Cow” marketing campaign met with
great success. Last year, sa.es were $200 mi..ion ($177 mi..ion came from supermarket and
grocery store sa.es), which put the company third in the industry behind Häagen-Dazs and
Ben & Jerry’s. These top three competitors ho.d 62% of the market.
The president, Winston Cow, is sti.. not satisfied. He wants to increase company sa.es to $250
mi..ion by next year. How do you do it?
Let me make sure I understand. Cow Brothers, the number three maker of premium ice cream,
wants to increase its sa.es from $200 mi..ion to $250 mi..ion next year. That wou.d be an
increase of around 25%. How much did Cow Brothers’ sa.es increase .ast year?
– 10%.
And that was main.y due to the “Have a Cow” marketing campaign?
– Yes.
One objective is to increase company sa.es. Are there any other objectives or goa.s that I
shou.d be aware of?
– No.
Is the company private.y he.d?
– Yes.
What was the overa.. industry growth .ast year?
– 12%.
So Häagen-Dazs and Ben & Jerry’s on.y grew by 12% .ast year?
– No. Ben & Jerry’s grew by 20% Häagen-Dazs by less.