Perry Ice-Cream Case Analysis
As outlined in the case by Ryan & Barretta, (2018), Perry Ice cream is a privately owned family business with headquarter in Buffalo New York. It is a business that grew its delivery from home, local school to being the largest ice cream manufacturing company in New York City. Morton Perry acquiring the Frontier Ice cream company in 1936 was a great boost in marketing his product since he was in a position to reach to many consumers. Through that acquisition, he got three already qualified employees other than employing new employees with little or no experience (Ryan, & Barretta, 2018). Perry Ice cream makes good quality ice cream as it all known consumers go after good quality products to get value for their money which has been an advantage to the company n thus stable growth. Storing and delivering ice cream with the right temperature by ensuring that the trucks maintain a temperature ensures delivery of quality products as melting ice cream gives it a different taste. It changes the whole meaning of ice cream. Additionally, the company’s effective delivering of their products brings products close to consumers, thus increased sales.
The growth of the Perry Ice Company grew gradually hence the stable performance due to different stages learning must collaborate with a company that is equally good or close to it. If the national brand has growth potential as the Perry Ice Company, both companies are likely to grow at a faster rate and more effectively. Alternatively, if the company potential does not match that of Perry Ice Cream Company growth will be slow, thus reduced profit. Partnering also leads to reduced competition or gets rid of healthy competition.
The fact that a marketing channel bridges the gap between the producer and the consumers. It is important to consider the cost of each marketing channel, as some are more costly than others. Social media would be an effective marketing channel for Perry Ice Cream Company. Most of the consumers use social media platforms; for example, Instagram and Facebook would be major platforms to advertise ice cream. TV commercials would be an effective channel for marketing as it will capture a bigger number of people in a short period. By use of easy to remember and understand words is enough for even a two-year-old baby to come to know of the ice cream and want to taste it (Ryan, & Barretta, 2018). Marketing channels make the products move faster to consumers as well as creating awareness of a company’s product or in case of introduction of a new product in the market. An efficient market channel ensures that there is a good relationship between the producers and the consumers by fully representing the producers as well as the consumers by reporting any complain of a product from a consumer to the producers, in this case, the Perry Ice Company.
Both the margin and drayage proposals are of benefit to the company in different ways. In on the margin proposal, the company benefits from every sale that is made on the national ice cream brand. This further explains that the Perry Company benefits even when consumers buy the other brand of ice cream. In case of a change in pricing, for example, a reduction both companies reduce prices thus reduced profits to each company. On the other hand, in the drayage proposal, the Perry Ice Company gets to be paid a fee from every distribution and handling of the other company’s products (Ryan, & Barretta, 2018). The Perry Ice Company has expertise in delivering and storage of its products as discussed above. I would recommend they use the margin proposal as the company will benefit even when their product is not consumed due to different consumers’ tastes and preferences. Furthermore, it possible for the other company to set their trucks and on the said temperatures and prefer to take on warehousing and distribution themselves in future.
Reference
Ryan, K. S., & Barretta, P. G. (2018). Perry’s ice cream distribution strategy and strategic alliances: The 800-pound gorilla. SAGE Publications: SAGE Business Cases Originals.