What is the “optimal solution” for selling ice cream?

As the weather gets hotter, cooling products such as ice cream will also return to people's horizons. So, if you are the owner of a convenience store, how would you purchase and sell products such as ice cream? What kind of marketing strategy is the best solution for this business? The author of this article summarizes TA's solution, let's take a look.

In the hot summer, ice cream takes center stage again.

Ice cream is a typical "seasonal product" with high demand in summer and low demand in winter.

Therefore, many businesses hope to use ice cream to stimulate sales in the summer and maximize seasonal revenue.

Today, let's simulate a small business:

Suppose you are the owner of a supermarket or convenience store and have a budget of 100,000 yuan to purchase ice cream. How would you allocate the budget?

1. How to allocate the budget?

Generally speaking, high-end ice cream has innovative flavors, exquisite packaging, and good quality, with relatively high sales prices and profit margins; however, the consumer group is relatively niche, sales volumes are low, and there is a high risk of inventory capital backlogs.

Mass-market ice cream has ordinary flavors, simple packaging, and acceptable quality, with relatively low sales prices and profit margins; but its consumer base is relatively broad, sales volumes are high, and market competition is also relatively fierce.

Then, we can adopt different procurement strategies, such as:

1. High-end ice cream: can be purchased in small quantities and multiple times to avoid taking up too much inventory funds and space;
2. Popular ice cream: You can buy it in large quantities at one time and use wholesale discounts to reduce purchasing costs.

Let’s do a simple calculation.

Assuming the estimated sales volume ratio of premium ice cream to mass-market ice cream is 3:7, the profit margin ratio is 2:1, and the inventory turnover ratio is 1:2, then we can allocate the budget roughly like this:

1. Purchasing budget for high-end ice cream = 100,000 x 3/7 x 2/1 x 1/2 = 42,900
2. Budget for purchasing popular ice cream = 100,000 x 4/7 x 1/2 x 2/1 = 57,100

Formula Explanation

First, allocate the budget according to the estimated sales volume: high-end ice cream accounts for 3/7, and mass-market ice cream accounts for 4/7. Mass-market ice cream sells more and should receive more budget;

Then, two influencing factors are selected for weighting, namely profit margin and inventory turnover rate. The profit margin represents how much profit can be made from the product, and the inventory turnover rate represents how fast the product can be sold.

Different formulas can be listed according to different decision-making ideas.

In other words, we can first use 57,100 yuan to purchase popular ice cream in one go to meet mass consumption needs; then use 42,900 yuan to purchase high-end ice cream in batches to increase sales profits.

Of course, this is just for the convenience of calculation. In real life, our decision-making process is much more complicated, and we need to consider factors such as product shelf life, changes in consumer preferences, and market competition.

2. How to set prices?

Generally speaking, there are three approaches to pricing.

We assume that the cost of ice cream A is 5 yuan per stick, and see what the differences are when using these three pricing methods?

① Cost-based approach:

Based on the cost of ice cream, the price is increased according to a certain profit ratio to ensure profitability.

For example, if we purchase ice cream A at a cost of 5 yuan per stick, and adjust the price according to a 50% profit margin, we can set the price to 7.5 yuan.

② Value-based approach:

That is, setting prices based on what customers are willing to pay may allow us to make more profits.

For example, we originally planned to set the unit price of ice cream A at 7.5 yuan, but the survey found that customers are willing to pay 8 yuan for this ice cream, so we set the price to 8 yuan.

③ Competition-based approach:

That is, setting prices based on competitors’ pricing for similar ice creams to improve product competitiveness.

For example, our competitors price ice cream A at 7 yuan. Taking into account that this product has no special premium space, in order to seize a higher market share, we price ice cream A at 6.5 yuan to attract more price-sensitive customers and achieve small profits but quick turnover.

We can see that different market strategies will determine different pricing methods. A simple summary is as follows:

If you are not sure which pricing strategy to adopt, you can also conduct an A/B test:

That is, offering different prices to different customers and measuring the impact on sales, revenue, and profits.

For example, we can divide customers into two groups, A and B.

We provided ice cream at 7.5 yuan per stick to customers in Group A and ice cream at 6.5 yuan per stick to customers in Group B, and compared the results.

This way, we can find out which price maximizes profitability and customer satisfaction.

We can also adopt the strategy of "price discrimination" for different customers:

That is, charging different customers different prices based on their willingness to pay.

For example, we also divide customers into two groups, A and B.

We provide Group A customers with coupons that give them a 10% discount on their purchase, while Group B customers are charged full price.

This way, we can adjust prices accordingly based on the elasticity of demand for each group.

3. How to sell?

Because ice cream is a typical "seasonal product" , it is very important to quickly process inventory.

1. Place the ice cream freezer in a conspicuous place

The main purchasing motivation for ice cream consumers is "instant gratification" , and they prefer to buy it quickly at nearby convenience stores to satisfy their craving for cooling off.

Therefore, when we enter a convenience store, we usually see ice cream refrigerators placed near the checkout counter or the door, so that we can see them when we pay or pass by the store, and consider taking them home.

2. Save the freshest ice cream for the end

FIFO (First in First out) is a way to manage ice cream inventory, which means "first in, first out" . Products with earlier production dates are sold first, and then products with later production dates are sold.

In the refrigerators of convenience stores, we often see that the store clerks "hide" the freshest ice cream at the bottom and put the relatively less "fresh" products at the top. This method can help us better handle inventory while ensuring that the products are not expired.

3. Provide special offers or services

We can study the peak purchasing times for customers.

For example, in a convenience store near an office building, the peak time for customers to buy ice cream may be between 2pm and 5pm;

In convenience stores near residential buildings, the peak time for customers to buy ice cream may be from 6 to 10 after get off work and on weekends;

In convenience stores near tourist attractions, the peak time for customers to buy ice cream is generally during the weekend when the tourist area has the largest passenger flow.

Therefore, you can take advantage of this peak period of impulse buying of ice cream and offer some special discounts or services, such as buy one get one free, half price for the second piece, free samples, etc., to increase sales.

We can also launch some themed or limited ice cream activities based on festivals, such as a Valentine's Day double package, a Children's Day half-price package, or special combinations such as ice cream + toys, ice cream + chocolate, ice cream + balloons, etc.

4. Provide online ordering service

We can expand our sales scope by providing online ordering services. Starting an online business is not limited to moving the product catalog to food delivery platforms such as Meituan or your own mini-programs, but you can also provide special ordering services:

For example, we can work with surrounding companies to provide bulk ice cream ordering discounts for their birthday parties, employee welfare activities, etc.

For example, we can cooperate with surrounding cafes and restaurants to provide special services such as after-meal desserts;

For example, we can provide seasonal discounts for family orders and offer nearby residents benefits such as points redemption for ice cream.

4. Final Thoughts

Ice cream is a summer product, so its peak sales season is relatively short.

But it also has strong explosive potential:

• It can meet consumers' seasonal needs and improve their satisfaction and loyalty;
• You can take advantage of seasonal market opportunities to increase sales and profit margins;
• It can increase the diversity and freshness of products and attract consumers' attention and interest;
• It can be bundled with other products in the store to increase the added value and competitiveness of the products.

Different business strategies and different marketing methods determine whether it is an ordinary passer-by or the most beautiful thing in summer.

How to sell ice cream? Everyone has a different answer.

Maybe this is the charm of doing business.

Author: Vinky, WeChat public account: Sanyanliangyu