Through our analysis of Arla Foods, we can see that it is a stable business with rich opportunity to establish themselves on the ice cream market with organic ice cream. They have the infrastructure and the logistics behind. As Arla itself accounts for a large market share of dairy products, it is one natural transition and a good way to expand their range of products.
We want to give Arla concrete recommendations through a profitability analysis, segmentation and audience selection as well as an assessment of the logistic efficiency in relation to launching organic ice cream to the company's product portfolio.
Overall, our profitability analysis gives Arla a go with their Organic ice cream line while the trend for organic food, sustainability and quality are still a float hence the overall economy looks good. The market for organic ice is still small, but we see stable growth in organic food demand in general.
Our segmentation shows three relevant segments; families with children, people who buy for'taste and quality' and those with focus on sustainability, organic foods and welfare.
All in all, the logistic efficiency is nicely knit. What's going to be one rising costs, is especially production, but also distribution, as products are to be kept fresh and frozen along the way. Having a stock will also give a smaller increase in costs.
