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Ice cream wars are heating up
http://www.sina.com.cn 2003/04/23 10:59  Shanghai Daily

  As summer draws near, the local ice cream business has become an icy battlefield with manufacturers vigorously pushing forward new products and promotions in anticipation of grabbing a major share of the market.

  The city's ice cream consumption volume is predicted to reach 80,000 tons this year, a 5 percent increase from 2002, according to the Shanghai Frozen Food Association.

  Currently, there are around 276 ice cream products sold in the city. About 121 are new products, 43.8 percent of the total.

  Altogether, five brands - Wall's, Bright, Yili, Nestle and Datang - dominate 85 percent of the local market.

  "The local ice cream market will surely see heated competition in the coming weeks," said Feng Fusheng, vice secretary of the Shanghai Sugar Products Association. "The city's demand is relatively stable while all manufacturers are making laborious efforts. It will be a real battle to see who emerges as the dominant manufacturer."

  Wall's, the world's leading ice cream manufacturer, is spending 150 million yuan (US.09 million) in domestic advertising. With a brand new trade mark, the company wants to be more "aggressive" in its marketing.

  "Shanghai is a fashion leader in every respect, in-cluding ice cream," said Peter Ter-Kulve, chairman of Wall's (China) Co Ltd. "We see the city as our real home."

  He said the company had a 30 percent share of the market last year.

  Ter-Kulve added Wall's had increased its distribution points with more visibility in department stores and the opening of mini ice cream bars around the city.

  Domestic producers, meanwhile, have also exerted themselves to ensure market position.

  Bright, a popular local brand that was second to Wall's last year, created an ice cream packaged in a mini plastic wine bottle. "Both the taste and package are origi-nal," said Sun Jingrong, sales manager at Shanghai Yimin Food Co, producer of Bright.

  Yili and Mengnu, two Inner Mongolia-based companies, are relying on creative promotions and a low-price strategy to lure consumer. Yili has created a lucky draw for visiting Disneyland and some 19 out of its 25 new products are priced at 1.5 yuan.




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