SUBMITTED BY :AMRENDRA SINGHRITESH MEHRAGIRISH SINGHRAHUL KUMARHARSHVARDHAN
THE BEGINNING OF NEW ERAIndian contribution to the modern world isabsolutely great.One of the contribution in the desert category”the kulfi”KULFIKulfi is a popular South Asian, ice cream made withboiled milk typically from buffalo. Kulfi differs fromwestern ice cream in that it is richer in taste andcreamier in texture.
It is made by boiling milk until it is reduced tohalf .then sugar is added and the mixture foranother 10 minutes. Then flavouring with dryfruit etc. then kulfi is put into moulds andfrozen. As well kulfi is also served withfalooda.Now , ice age – the healthy ice creamparlor bring the new generation of icecream.
QUALITY SEGMENTVarious factor contribute to the quality segment,such as price ,brand positioning ,product packaging, quality of ingredients.There are various variants of ice cream:•Super premiumit has high fat and it is high quality ingredients•Premium ice creamit has low overrun and higher fat content thenregular ice cream.•Regular ice creamSell for a lower price than a premium ice creamprice
Company profileName: ice age-the healthy ice cream parlorDate of launch: 1/02/2011Investment:Total capital investment required - 20croreBorrowed capital(loan from sbi bank) - 5croreTotal partner investment - 15crore
BUSINESS STRATEGYOur business strategy will include thedetermination of the most beneficial productmarket in term of establishing itself in thisnew product segment.
The model used for preparing the marketing strategy by ICE AGE Ltd. , in the Indian market1.Product range2.Internal analysis3.External analysis4.Competitors analysis5.Environment analysis6.Marketing strategy7.Future plans8.conclusion
•The first growth vector will involves gaining penetration withthe existing product-market Ice Age Ltd. will attempt toattract customers from competitors through its strategicpositioning and will establish strong brand equity.•The second growth vector will involves product expansionwhile staying in the current market. Ice Age Ltd. will thenoffer a new product. It will be aimed not only for the existingmarket but also for the price conscious segment.•The third growth vector will apply the same products to thenew markets.•The fourth growth vector will be to diversify into newproduct markets. We shall concentrate on the second growthvector and study the strategy with respect to the Ice Creammarket.
INTERNAL ANALYSISDuring internal analysis the ice age should take care of the following things.•Raw material requirement•Power supply•Labor requirement•Working force•Capital•Working capital•Internal rules and regulations•Proper management•Proper material handling
External analysisIce Age Ltd.. has decided to enter this marketwith the basic idea of tapping the middle andupper middle class which had establisheditself as a huge tapped market in theperception of a lot of national andmultinational players who were then tryingforages into the Indian market.
Competitor analysis•Consumer mindset-The consumers always have a differentloyalty status for different brands. Sometimes they buy somebrand due to the price or sometimes due to the features.Studying the consumer’s mindset is of vital importance asperception of individuals at the buying stage of variousbrands is unpredictable and ever changing.•Market share-market share helps us know the currentmarket leader and market follower so that our company candevelop an efficient market strategy.
swott analysis-the swott analysis help us know thecompany having better strength ,more opportunityon the other hand company having more ofweakness and threats 35 30 25 Nirulas 20 Baskins robbbins 15 10 Gyanis 5 others 0 1st QtrThe above diagram represents the sales of the famous Ice Cream parlors in Delhi and their sales before Ice Age entered the market
Environment analysis1. High initial cost - high initial cost includes cost of product development ,market research ,test marketing etc. to create awareness and develop new brand and its expenditure such as advertisement, free sample and product promotions. launch cost are as high as 50-100% of revenue in first year.2. Market research –it includes problem definitions , research design, collection of data, field work ,data analysis, report prepare, follow up recommendation.
3. Brand equity - Brand equity refers to theintangible asset in the form of brand names. Theconsumers loyalty for a particular brand is due tothe perception that the product has distinctivelysuperior and consistent quality, satisfies his/ herspecific needs and provides better value for moneythan other competing brands.
The major problems faced while marketing in the Indian market:1. Underdeveloped People and Underdeveloped Markets:The number of people below poverty line has not decreased in anyappreciable manner. Thus underdeveloped people and consequentlyunderdeveloped market by and large characterize the Indian markets.2. Many Languages and Dialects:The number of languages and dialects vary widely from state tostate, region to region and probably from district to district. Themessages have to be delivered in the local languages and dialects.Even though the numbers of recognized languages are only 16, thedialects are estimated to be around 850.3. Different way of thinking: -There is a vast difference in the lifestyles of the people. The kind ofchoices of brands that an urban customer enjoys is different from thechoices available to the rural customer. The rural customer usuallyhas 2 or 3 brands to choose from whereas the urban one has multiplechoices. The difference is also in the way of thinking. The ruralcustomer has a fairly simple thinking as compared to the urbancounterpart.
• Strengths:Less fixed cost requiredHealthyNo side effectsLess consumption of sugarLess consumption of fatsReduces chances of illness like diabetesUseful for health conscious peopleTasty with healthvariety
•Weaknesses: Slightly high in price due to use of special products•Opportunities: Introduction of new flavors Easy in achieving break even point Prices can be reduced in short run•Threats: competition from existing Ice Cream parlors offeringsugar free ice creams•Trend: taste and preference of the consumer good quality packaging so that it attract consumer
Marketing mixProduct Ice Age Ltd… introduces Ice Age Ice Creams –The Healthy Ice Cream Parlor which brings to you anew generation of ice creams. There are many choices in today’s ice creamcase to suit a wide variety of consumers taste.There is plenty of information on food labels, butwhat does it really mean? Where Ice Age doesstands?? Ice cream is a frozen food made from amixture of dairy products, containing at least 10%milk fat.
Reduced fat" ice cream contains at least 25%less total fat than the competitor referencedproduct."Light" ice cream contains at least 50% less totalfat or 33% fewer calories than the competitorproduct ."Low fat" ice cream contains a maximum of 3grams of total fat per serving"Nonfat" ice cream contains less than 0.5 gramsof total fat per serving.
Introduction of new product in the market•Completely fat free ice cream•98.99% sugar free ice cream•Eco-friendly•Healthy•Zero side effects•Ice creams for all age groups•Total health conscious product•Blend to suite the taste buds with health in mind•More then thirty Variety of flavors for the first time in sugar free andfat free concept
Top 10 Flavors1. Vanilla,2. Chocolate,3. Butter pecan,4. Strawberry5. Punjabi delight6. Chocolate chip,7. French vanilla,8. Cookies and cream,9. Vanilla fudge ripple,10. Cherry,
PriceThe pricing strategy adopted by Ice Age Ltd.is PENETRATION PRICING because it is atotal new brand, which is entering amarket, which is already facing immensecompetition. And breaking this competitionand attracting new requires quality productat low price. Hence our product will be pricedlow which will be economical and willencourage new buyers. Hence we haveadopted the penetration pricing method forcapturing market share and establishingourselves in the market.
After considering all the factors i.e. costof production, transportation cost, storecharges, etc… and after analyzing this datathe manger coated the price list according tothe material requirement of the product andthe making charges with considering allother of the store also.According to our manager the cost of perscoop of ice cream will Rs. 30 to 50 whichwould earn the company a profit of 20% oncost.
After deep research and marketsurvey it was found out that thecompany will meet its break evenpoint of production within 2 year ofits expected sales of 50000 unitsper month.
PlaceIce Age Ltd… will be establishing its marketing throughoutDelhi. Ice Age ice creams being an entirely new product inthe market will initially operate only in Delhi till furtherexpansion. The segmentation of Ice Age ice creams is done onthe basics of “Demographic segmentation” and“psychographic segmentation”. Keeping this segmentationin mind the management has taken steps to open its shops atthe following places in Delhi:
•Rajori Garden•New Delhi railway station•Select City, Saket•Connaught place•South campus and north campus•Kashmiri Gate metro stationThe main production of all the products willbe done at the main unit based at “Azadmarket” and then will be transported to all itsshops at different places all over Delhi.
PromotionWe will give all the retailers/direct-dealers a goodprofit margin than our competitors are providingthem but not at the initial stage because we arefocusing to attract our target market usingdiversified means of promotions and advancedtechnology to our customers at reasonable price.We will also give them incentives for vouching forour product at a later stage as we settle down in themarket. Hence we have decided not to go for pushpromotion strategy at present but instead we havedecided to go for pull promotion strategy.
•Television advertisements: Advertisements topromote and market our product will be shown onleading television channels. Major music and familychannels will promote Ice Age Ice Creams as theywill reach out to the youth as well as all age groups.Star, Zee, Sony , Doordarshan, M Tv etc will be ourmain promoters.•Radio: Radiois the medium with the widestcoverage. Studies have recently shown high levelsof exposure to radio broadcasting both within urbanand rural areas, whether or not listeners actuallyown a set. Many people listen to other peoplesradios or hear them in public places. So radioannouncements will be made and advertisementswill be announced on the radio about the productfeatures and price, qualities, etc.
•Print Ads: Daily advertisements in leadingnewspapers and magazines will be used topromote the product. Leaflets at the initialstage will be distributed at railwaystations, malls, college areas and variousother locations.•Workshops and seminars: Workshops andseminars will be held in colleges to makepeople aware about the company andproduct features, its affordability and vastdistribution network.
•Banners: Hoardings, banners, will bedisplayed at clubs, discs, outside theatresand shops to promote our range of flavors.•Booklets and pamphlets: Booklets will bekept at ice cream parlors for the customer toread. These booklets will provide informationabout our company; the products offeredwhich suits the customers need according totheir taste.
Future Plans research and market survey it After deepwas found out that the company will meet itsbreak even point of productionconcept in theIce Age Ltd… is a entirely new within 1 yearof its expected sales of 50000 units perthissegment of frozen deserts, because ofmonth. the management has decided thatreasoncurrently there would only be 7 outlets of thecompanies ice cream parlor through outDelhi. As the company progresses in 10 to 12months the management has lots of plansabout the future expansion of the healthyeating concept through-out state, through-out the country and then through-out theworld…..
•Give franchise to reputed dealers through-outDelhi.•To merge with “ Big bazaar” and open our icecream outlets at all Big bazaar outlets.•To slowly start a manufacturing unit first inMumbai, Goa, Madras, Poona and Calcutta.•Slowly capture all aspects of healthy eating i.e.introduction of healthysnacks, juices, sweets, cakes, chocolates, etc….•One of the dreams of the company of Ice Age IceCreams is to spread the concept of healthy eatingthrough-out the S.A.A.R.C countries.
conclusionIn today’s world of ice creams Nirula’s, baskin and robbins, Gyanisice cream etc… are the leading ice cream parlors in Delhi. Theircombined sale figures through-out the month is about 1,50,000units. Ice Age ice creams being on a starting stage, will have agood advertising strategies, sales promotions, offers to attractmore customers and to make them more familiar to our brand.Due to our new technique of production and distribution, evenafter entering the market on platform basis and investing more onthe special inputs our cost nearly 5% more than the cost of ourcompetitors, but with the concept of healthy eating we accept oursales to be around 50,000 to 60,000 units per month.
Due to our special fat freeand sugar free ice creamsall age groups will be ableto enjoy the same old tasteof ice creams but withgreat care of health.