Marketing And Demand Potential

Marketing Demand and Potential

ÐŽ§Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. Market potential is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.ЎЁ (Kotler, 2001, pg. 63).

This paper will focus on the potential of opening a new ice cream parlor in Chicago, Illinois. The ice cream parlor would be unique in that when the consumer enters this parlor he/she can create his/her own ice cream creation by deciding on the flavor of premium ice cream and what type of treat to mix it with. These ÐŽ§treatsЎЁ include a variety of fresh fruit, nuts, chocolates, candy pieces, and traditional toppings. The consumer will be given all of his or her selections and directed to a see-thru mixer. During this step, the consumer would pour in all the ingredients and watch his/her creation in the making. My theory is this process would be extra special for children. The mixed treat would then be served in a special cone or container. It the consumer decides to eat at the parlor, special old-fashioned ice cream glasses and bowls will be used.

History of Ice Cream

The love of ice cream goes back to 1776, when the first ice cream parlor was opened in New York City. Also, Dolley Madison, wife of U.S. President James Madison, served ice cream at her husband's Inaugural Ball in 1813. Fast forward to 2003 and America continues a love affair with ice cream. The following are some facts from the website, MakeIceCream.com, about Americas consumption of ice cream.

„X Annual sales of ice cream in the United States exceed $3 billion.

„X The United States produces more ice cream than any other country; about 13 quarts a year per capita.

„X Each American consumes a yearly average of 23.2 quarts of ice cream, ice milk, sherbet, ices and other commercially produced frozen dairy products.

„X More ice cream is sold on Sunday than any other day of the week.

„X Ice cream consumption is highest during July and August. July is National Ice Cream Month.

„X Children ages two through 12, and adults age 45 plus, eat the most ice cream per person.

„X Ninety percent of all households purchase ice cream.

„X The top five states that produce the most ice cream are California, Indiana, Ohio, Illinois, and Michigan.

Market Demand for an Ice Cream Parlor

The targeted area for a new ice cream parlor is in an area of Chicago known as the Beverly/ Morgan park community. The Beverly Hills/Morgan Park community of Chicago is known as "the Ridge.ЎЁ The area, lying 30 to 60 feet above the rest of the city on a ridge formed by glaciers, is now distinguished by the quality of its residential architecture. The community displays examples of all American house styles developed since 1844.

This community is known as a family orientated community with a diverse, well-educated population, good public and private schools, and historical homes. The community is comprised of zip codes 60643 and 60655. According to the 2000 U.S. Census, this area has a total of 20,707 family households. Of the households in zip code 60643, 22.3 percent of them have children between the ages of 0-14 years of age and 38.3 percent adults age 45 and over. In zip code 60655, includes 21.9 percent children between the ages 0-14 and 34.8 percent adults age 45 and over. If we go back to our consumption of ice cream data, we see that children ages two through 12, and adults age 45 and over, eat the most ice cream. This creates a great market demand for an ice cream parlor in this area.

Market