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20 ice+cream+project

  1. 1. Group Members4206 Phinsy Chirayath4212Aaron D’souza4226Fizzah S.J4235Rahul Mahapatra4246Shruti Saraf4254 Justin D’costa
  2. 2. India’s contribution to the modern world may not be signed in numbers, but whatevercontribution made worth wise is absolutely great.One of the contributions in the desert category “THE KULFI”KulfiKulfi is a popular South Asian, ice cream made with boiled milk typically from water buffalo.It comes in many flavors, including pistachio, malai, mango, cardamom (elaichi), and saffron(kesar). Kulfi differs from western ice cream in that it is richer in taste and creamier in texture.As well, where western ice creams are whipped with air or overrun, kulfi contains no air; it issolid dense frozen milk.It is made by boiling milk until it is reduced to half. Then sugar is added and the mixture isboiled for another ten minutes. Then flavorings, dried fruits, cardamom, etc. are added. Themixture is then put in moulds and frozen. One can eat kulfi plain as is or it can be garnishedwith ground cardamom, saffron, or pistachio nuts. As well, Kulfi is also served with Faloodavermicelli noodles.But since the kulfi could not become world famous, with the concept of kulfi, ice-cream wasstarted in 1981 in India. Then onwards it has been one big journey……. on the road.Now, Ice Age – The Healthy Ice Cream Parlor brings to you the new generation of IceCreams….
  3. 3. The Evolution of Ice CreamIce creams origins are not known to reach back as far as the second century B.C., although nospecific date of origin nor has inventor been undisputable credited with its discovery. We knowthat Alexander the Great enjoyed snow and ice flavored with honey and nectar. Biblicalreferences also show that King Solomon was fond of iced drinks during harvesting. During theRoman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners into the mountainsfor snow, which was then flavored with fruits and juices.Over a thousand years later, Marco Polo returned to Italy from the Far East with a recipe thatclosely resembled what is now called sherbet. Historians estimate that this recipe evolved intoice cream sometime in the 16th century. England seems to have discovered ice cream at the sametime, or perhaps even earlier than the Italians. "Cream Ice," as it was called, appeared regularlyat the table of Charles I during the 17th century. France was introduced to similar frozendesserts in 1553 by the Italian Catherine de Medici when she became the wife of Henry II ofFrance. It wasnt until 1660 that ice cream was made available to the general public. TheSicilian Procope introduced a recipe blending milk, cream, butter and eggs at Caf Procope, thefirst caf in Paris.Ice Cream for AmericaThe first official account of ice cream in the New World comes from a letter written in 1744 bya guest of Maryland Governor William Bladen. The first advertisement for ice cream in thiscountry appeared in the New York Gazette on May 12, 1777, when confectioner Philip Lenziannounced that ice cream was available "almost every day." Records kept by a Chatham Street,New York, merchant show that President George Washington spent approximately $200 forice cream during the summer of 1790. Inventory records of Mount Vernon taken afterWashingtons death revealed "two pewter ice cream pots." President Thomas Jefferson was saidto have a favorite 18-step recipe for an ice cream delicacy that resembled a modern-day BakedAlaska. In 1812, Dolley Madison served a magnificent strawberry ice cream creation atPresident Madisons second inaugural banquet at the White House.Until 1800, ice cream remained a rare and exotic dessert enjoyed mostly by the elite. Around1800, insulated ice houses were invented. Manufacturing ice cream soon became an industryin America, pioneered in 1851 by a Baltimore milk dealer named Jacob Fussell. Like other
  4. 4. American industries, ice cream production increased because of technological innovations,including steam power, mechanical refrigeration, the homogenizer, electric power and motors,packing machines, and new freezing processes and equipment. In addition, motorized deliveryvehicles dramatically changed the industry. Due to ongoing technological advances, todaystotal frozen dairy annual production in the United States is more than 1.6 billion gallons.Wide availability of ice cream in the late 19th century led to new creations. In 1874, theAmerican soda fountain shop and the profession of the "soda jerk" emerged with the inventionof the ice cream soda. In response to religious criticism for eating "sinfully" rich ice cream sodason Sundays, ice cream merchants left out the carbonated water and invented the ice cream"Sunday" in the late 1890s. The name was eventually changed to "sundae" to remove anyconnection with the Sabbath.Ice cream became an edible morale symbol during World War II. Each branch of the militarytried to outdo the others in serving ice cream to its troops. In 1945, the first "floating ice creamparlor" was built for sailors in the western Pacific. When the war ended, and dairy productrationing was lifted, America celebrated its victory with ice cream. Americans consumed over20 quarts of ice cream per person in 1946.In the 1940s through the 70s, ice cream production was relatively constant in the UnitedStates. As more prepackaged ice cream was sold through supermarkets, traditional ice creamparlors and soda fountains started to disappear. Now, specialty ice cream stores and uniquerestaurants that feature ice cream dishes have surged in popularity. These stores andrestaurants are popular with those who remember the ice cream shops and soda fountains ofdays past, as well as with new generations of ice cream fans.According to legend, Marco Polo brought the secrets of ice cream with him from the Orient,together with other sundry savories. There is, however, no proof of that, although there is someevidence that the Chinese indulged in iced drinks and desserts, which gives some weight to theMarco Polo theory.The Chinese did, however, teach Arab traders how to combine syrups and snow, to make anearly version of the sherbet. Arab traders proceeded to show Venetians, then Romans, how tomake this frozen delight. The Emperor Nero was quite fond of pureed fruit, sweetened withhoney, and then mixed with snow--so much so that he had special cold rooms built underneaththe imperial residence in order to store snow. In the 1500s, Catherine de Medici brought theconcept of the sorbet to the French, who were soon to make a great improvement on it.As you will have noted, the above are frozen desserts, not ice cream. That invention awaitedthe development of the custard, then the discovery that freezing it would create a delectabledessert. This notable event occurred in 1775 in France, and was shortly followed by the
  5. 5. invention of an ice cream machine, which did a much better job of creating a light and fluffyfrozen custard than beating by hand could do.Thomas Jefferson, who imitated Nero in having a special cold room for storing snow, providesus with the first recipe for ice cream found in the United States. Not to be outdone, GeorgeWashington invested in one of the ice cream machines.Until 1851, ice cream (or, more frequently, cream ice) was solely made at home. But an intrepidman from Baltimore, named Jacob Fussell changed all that by opening the first ice creamfactory.Near the turn of the century, the ice cream soda was created, although by who seems to be inquestion--either James W. Tuff or Robert Green. It does seem to have been done by accident,however--a scoop of ice cream falling in a glass of flavored soda water. At any rate, the drinkbecame a national craze, and many a girl and boy went courting over an ice cream soda. Somany, in fact, that many municipalities passes laws forbidding the sale of soda water onSunday. Quickly afterwards, the sundae was invented--it contained the ice cream, syrup, andwhipped cream of the soda, but without the evil influence of soda water. Numerous variationsexisted.The next ice cream craze with the 1904 Louisiana Purchase Exposition in Saint Louis. CharlesMenches was doing a lively business selling scoops of ice cream in dishes, all the way up to thepoint that he ran out of dishes. Frustrated, but determined to still find a way to make a profit,he lighted upon his friend Ernest Hamwi, who was selling a wafer-like cookie called zalabia (aSyrian treat). The combination proved irrestible.
  6. 6. HISTORY OF THE ICE CREAM CONEFor over a century, Americans have been enjoying ice cream on a cone. Whether its a wafflecone, a sugar cone or a wafer cone, what better way to enjoy a double scoop of your favoriteflavor?Making Its AppearanceThe first ice cream cone was produced in 1896 by Italo Marchiony. Marchiony, who emigratedfrom Italy in the late 1800s, invented his ice cream cone in New York City. He was granted apatent in December 1903.Although Marchiony is credited with the invention of the cone, a similar creation wasindependently introduced at the 1904 St. Louis Worlds Fair by Ernest A. Hamwi, a Syrianconcessionaire. Hamwi was selling a crisp, waffle-like pastry -- zalabis -- in a booth right nextto an ice cream vendor. Because of ice creams popularity, the vendor ran out of dishes. Hamwisaw an easy solution to the ice cream vendors problem: he quickly rolled one of his wafer-likewaffles in the shape of a cone, or cornucopia, and gave it to the ice cream vendor. The conecooled in a few seconds, the vendor put some ice cream in it, the customers were happy and thecone was on its way to becoming the great American institution that it is today.A Business Is BornSt. Louis, a foundry town, quickly capitalized on the cones success. Enterprising peopleinvented special baking equipment for making the Worlds Fair cornucopia cones.Stephen Sullivan of Sullivan, Missouri, was one of the first known independent operators inthe ice cream cone business. In 1906, Sullivan served ice cream cones (or cornucopias, as theywere still called) at the Modern Woodmen of America Frisco Log Rolling in Sullivan,Missouri.At the same time, Hamwi was busy with the Cornucopia Waffle Company. In 1910, hefounded the Missouri Cone Company, later known as the Western Cone Company.As the modern ice cream cone developed, two distinct types of cones emerged. The rolled conewas a waffle, baked in a round shape and rolled (first by hand, later mechanically) as soon as itcame off the griddle. In a few seconds, it hardened in the form of a crisp cone. The second typeof cone was molded either by pouring batter into a shell, inserting a core on which the cone was
  7. 7. baked, and then removing the core; or pouring the batter into a mold, baking it and thensplitting the mold so the cone could be removed with little difficulty.In the 1920s, the cone business expanded. Cone production in 1924 reached a record 245million. Slight changes in automatic machinery have led to the ice cream cone we know today.Now, millions of rolled cones are turned out on machines that are capable of producing about150,000 cones every 24 hours.
  8. 8. FROM THE COW TO THE CONE How Ice Cream Is MadeEverybody has a favorite flavor or brand of ice cream, and the debate over whose ice cream isthe best rages on each year. While each manufacturer develops its own special recipes, ice creamproduction basics are basically the same everywhere.The most important ice cream ingredients come from milk. The dairy ingredients are crucial indetermining the characteristics of the final frozen product. Federal regulations state that icecream must have at least 10% milk fat, the single most critical ingredient. The use of varyingpercentages of milk fat affects the palatability, smoothness, color, texture and food value of thefinished product. Gourmet or super premium ice creams contain at least 12% milk fat, usuallymore.Ice cream contains nonfat solids (the non-fat, protein part of the milk), which contributenutritional value (protein, calcium, minerals and vitamins). Nonfat dry milk, skim milk andwhole milk are the usual sources of nonfat solids.The sweeteners used in ice cream vary from cane or beet sugar to corn sweeteners or honey.Stabilizers, such as plant derivatives, are commonly used in small amounts to prevent theformation of large ice crystals and to make a smoother ice cream. Emulsifiers, such as lecithinand mono- and diglycerides, are also used in small amounts. They provide uniform whippingqualities to the ice cream during freezing, as well as a smoother and drier body and texture inthe frozen form.These basic ingredients are agitated and blended in a mixing tank. The mixture is then pumpedinto a pasteurizer, where it is heated and held at a predetermined temperature. The hot mixtureis then "shot" through a homogenizer, where pressure of 2,000 to 2,500 pounds per square inchbreaks the milk fat down into smaller particles, allowing the mixture to stay smooth andcreamy. The mix is then quick-cooled to about 40°F and frozen via the "continuous freezer"method (the "batch freezer" method) that uses a steady flow of mix that freezes a set quantityof ice cream one batch at a time.During freezing, the mix is aerated by "dashers," revolving blades in the freezer. The small aircells that are incorporated by this whipping action prevent ice cream from becoming a solidmass of frozen ingredients. The amount of aeration is called "overrun," and is limited by thefederal standard that requires the finished product must not weigh less than 4.5 pounds pergallon.
  9. 9. The next step is the addition of bulky flavorings, such as fruits, nuts and chocolate chips. Theingredients are either "dropped" or "shot" into the semi-solid ice cream after it leaves the freezer.After the flavoring additions are completed, the ice cream can be packaged in a variety ofcontainers, cups or molds. It is moved quickly to a "hardening room," where sub-zerotemperatures freeze the product to its final state for storage and distribution.
  10. 10. ICE CREAM LABELING - WHAT DOES IT ALL MEAN?There are many choices in todays ice cream case to suit a wide variety of consumer tastes. Thereis plenty of information on food labels, but what does it really mean? Here, the InternationalIce Cream Association sheds some light on how ice cream and related products are labeled.Labeling DefinitionsThe U.S. Food and Drug Administration (FDA) sets standards of identity for many foods sothat consumers will get a consistent product, no matter what brand or type they buy. For icecream, FDA permits the use of nutrient descriptors such as "light," "reduced fat" and "low fat"so that consumers know exactly what theyre selecting in terms of nutritional content. TheseFDA standards follow the federal Nutrition Labeling and Education Act (NLEA), whichgoverns all food labeling.Here are some of the terms consumers are seeing in the supermarket, and exactly what thoseterms mean:Ice cream is a frozen food made from a mixture of dairy products, containing at least 10%milk fat."Reduced fat" ice cream contains at least 25% less total fat than the referenced product(either an average of leading brands, or the companys own brand.)"Light" ice cream contains at least 50% less total fat or 33% fewer calories than thereferenced product (the average of leading regional or national brands.)"Low fat" ice cream contains a maximum of 3 grams of total fat per serving"Nonfat" ice cream contains less than 0.5 grams of total fat per serving.
  11. 11. Quality SegmentsIn addition, there are commonly used marketing phrases that describe ice cream products interms of quality segments, such as "super premium," "premium" and "economy." Several factorscan contribute to a products quality segment, such as price, brand positioning, productpackaging, quality of ingredients and the amount of overrun (air) in the product. Overrun refersto the amount of aeration the ice cream undergoes during its manufacture that keeps themixture from becoming an inedible frozen mass. Overrun is governed by federal standards inthat the finished product must not weigh less than 4.5 pounds per gallon."Super-premium ice cream tends to have very low overrun and high fat content, and themanufacturer uses the best quality ingredients."Premium" ice cream tends to have low overrun and higher fat content than regular icecream, and the manufacturer uses higher quality ingredients."Regular" ice cream meets the overrun required for the federal ice cream standard."Economy" ice cream meets required overrun and generally sells for a lower price thanregular ice cream.
  12. 12. Company profile:Name: Ice Age The Healthy Ice Cream ParlorDate of Launch: 20th September 2006Promoters: Justin D’costa Phinsy Chirayath Rahul Mahapatra Shruti Saraf Aaron D’souza Fizzah S.JProduct: Sugar free and Fat free healthy Ice Creams. Health conscious desert.Proposed Flavors: World famous Vanilla and 20 different mouth watering flavors.Project: Manufacturing and selling of healthy sugar free and fat free Ice Creams.Specially made for health conscious and sweet tooth people.
  13. 13. Head of department/ management: Justin D’costa : Finance Phinsy Chirayath : Public Relation Rahul Mahapatra : Marketing Shruti Saraf : Product Testing Aaron D’souza : Human Resources Fizzah S.J : Outlet managerInvestments: Total capital investment required: 7 crore Borrowed capital (loan from IDBI bank): 3 crore Total partners investment: 4 crore Each partners capital: 70 lakhs All the six promoters and administrators of Ice Age Ltd... will be equalpartners and the profits sharing ratio between them will be equal.
  14. 14. Introduction. Founded in Mumbai, Maharashtra, Ice Age Ltd.. company is setting up an Ice Creammanufacturing and selling parlor. The project will have great significance in the present daycontext of increasing weight and illness among the youth as well as adults due to increasing fatand sugar intake due to increasing content of sweetener in the Ice Creams and juices. The manufacturing of all types of ice creams will be done at its production site and then willbe transported to its parlors established in the heart of the city. Ice Age Ltd.. is entering theIndian market with an aim of establishing its brand as a necessity of the Indian buyers. The company will follow a strategic positioning approach for the target market. Ice Age Ltd..has kept into account the income and behavioral factor of the Indian buyers while designingthe products. It is important for the company to understand the consumer behaviour before itgoes into such a market. The Indian consumer for the first time will have a premium productwhich is eco-friendly, healthy and affordable.Business strategyOur business strategy will include the determination of the most beneficial product market interm of establishing itself in this new product segment. The most important factor for thesuccess of Ice Age Ltd. brand is the perception of the consumer and to what extent it can builda positive image in the consumer’s mind. The intensity of the business environment, thesustainable competitive advantage of a quality product will give it a strong base to build themarket.It is important for us to adopt a different strategy for the Indian market since it is composed ofquality buyers as well as those who will buy for their family. Thus, we shall introduce somenew strategies so as to establish our self in the Indian market and develop a strong customerbase.
  15. 15. The Model used for preparing the marketing strategy by Ice Age Ltd.. in the Indian Market Product Range Internal Analysis External Analysis Competitors Analysis Environment Analysis Marketing Strategies Future Plans Conclusion
  16. 16. The first growth vector will involves gaining penetration with the existing product-market IceAge Ltd. will attempt to attract customers from competitors through its strategic positioningand will establish strong brand equity.The second growth vector will involves product expansion while staying in the current market.Ice Age Ltd. will then offer a new product. It will be aimed not only for the existing marketbut also for the price conscious segment.The third growth vector will apply the same products to the new markets.The fourth growth vector will be to diversify into new product markets. We shall concentrateon the second growth vector and study the strategy with respect to the Ice Cream market.
  17. 17. According to the recent studies, most of the newly launched product or services fail dueto improper analysis of their internal and external needs. A company should most effectively and efficiently take care of all the internal mattersand needs. Since internal analysis is so use full and the life cycle as well as pricing is totally dependedupon this analysis, Ice Age Ltd.. has taken proper and fully effective steps in analyzing all theneed and requirements of the company.During internal analysis the promoter should take care of the following things: • Raw material requirement • Power supply • Labour requirement • Working force • Capital • Working capital • Internal rules and regulations • Proper management • Proper material handling
  18. 18. The Indian market with its vast size and demand base offers great opportunities to marketers.Two-thirds of countries consumers live in rural areas and almost half of the national income isgenerated here. It is only natural that rural markets form an important part of the total marketof India though the urban market is increasing drastically. Our nation is classified in around450 districts, and approximately 630000 villages, which can be sorted in different parameterssuch as literacy levels, accessibility, income levels, penetration, distances from nearest towns,etc.The rural bazaar is booming beyond everyones expectation. This has been primarily attributedto a spurt in the purchasing capacity of farmers now enjoying an increasing marketable surplusof farm produce. In addition, an estimated induction of Rs 140 billion in the rural sectorthrough the governments rural development schemes in the Seventh Plan and about Rs 300billion in the Eighth Plan is also believed to have significantly contributed to the rapid growthin demand. The high incomes combined with low cost of living in the villages have meant moremoney to spend. And with the market providing those options, trends and tastes are alsochanging.
  19. 19. Thus Ice Age Ltd.. has decided to enter this market with the basic idea of tapping the uppermiddle class which had established itself as a huge tapped market in the perception of a lot ofnational and multinational players who were then trying forages into the Indian market.NEED OF COMPARISION ℑ Consumer Mindset The consumers always have a different loyalty status for different brands. Sometimes they buy some brand due to the price or sometimes due to the features. Studying the consumer’s mindset is of vital importance as perception of individuals at the buying stage of various brands is unpredictable and ever changing. ℑ Market Share The market share of the players in the two wheeler auto market needs to be studied to know which company is in the booming stage and which company is in its closure stage. Also the advertisement and promotional share needs to be studied. Thus, market share helps us know the current market leader and market follower so that our company can develop an efficient marketing strategy for its product range after analyzing the current market player’s position. ℑ SWOT Analysis The SWOT Analysis i.e. the Analysis of the Strengths, Weaknesses, Opportunities and Threats of the company products and its competitors at a glance. It needs to be compared to get an overall analysis of all the major companies and to know the
  20. 20. company having better strengths, more opportunities and on the other hand the company having more of weaknesses and threats. 45 40 35 natural 30 baskin and 25 robbins 20 gelato 15 10 others 5 0 1st QtrThe above diagram represents the sales of the famous Ice Cream parlors in Mumbai and their sales before Ice Age entered the market 35 30 25 natural 20 ice age 15 gelato baskin and robbins 10 others 5 0 1st Qtr
  21. 21. This diagram represents the sales pattern of all the Ice Cream parlors in Mumbaiincluding Ice Age Ice Cream Parlor after one year from the launch of Ice AgeLtd... (Estimated)High initial launch costThere is a large front-ended investment made in new products including cost of productdevelopment, market research, test marketing and most importantly its launch. To createawareness and develop franchise for a new brand requires enormous initial expenditure isrequired on launch advertisements, free samples and product promotions. Launch costs are ashigh as 50-100% of revenue in the first year and these costs progressively reduce as the brandmatures, gains consumer acceptance and turnover rises. For established brands, advertisementexpenditure varies from 5 - 12% depending on the categories. It is common to give occasionalpush by re-launches, which involves repositioning of brands with sizable marketing support.Market researchCustomers purchase decisions are based on perceptions about brands. They also keep onchanging with fashion, income and changes in lifestyle. Unlike industrial products, it isdifficult to differentiate products on technical or functional grounds. With increasingcompetition, companies spend enormous sums on product launches. Market research and testmarketing become inevitable. The business rests on the two aspects that are brand equity anddistribution network.Marketing driven
  22. 22. In relative terms, marketing function has greater importance in the Ice Cream industry. Theplayers have to reach out to mass population and compete with several other brands. Theperceived differences are greater than the real differences in the product.Brand equityBrand equity refers to the intangible asset in the form of brand names. The consumers loyaltyfor a particular brand is due to the perception that the product has distinctively superior andconsistent quality, satisfies his/ her specific needs and provides better value for money thanother competing brands. A successful brand generates strong cash flow which enables theowner of the brand to reinvest a part of it in the form of aggressive advertisement/ promotionto reinforce the perceived superiority of the brand. The worth of a brand is manifested in theconsumers insistence on a particular brand or willingness to pay a price premium for thepreferred brand.Distribution networkIn this sector, one of the most critical success factors is the ability to build, develop, andmaintain a robust distribution network. Availability near the customer is vital for widerpenetration as most products are high value products. It takes enormous time and effort tobuild a chain of stockiest, retailers; dealers etc and establish their loyalties. There are entrybarriers for a new entrant as a new product is typically slow moving and has lesser consumerdemand. Therefore dealers/ retailers are reluctant to allocate resources and time. Establishedplayers use their clout to inhibit new entrants. However, when a product offers a strongbreakthrough, equity build up rapidly and so does the distribution network.The major problems faced while marketing in the Indian market:
  23. 23. a. Underdeveloped People and Underdeveloped Markets: The number of people below poverty line has not decreased in any appreciable manner. Thus underdeveloped people and consequently underdeveloped market by and large characterize the Indian markets.b. Many Languages and Dialects: The number of languages and dialects vary widely from state to state, region to region and probably from district to district. The messages have to be delivered in the local languages and dialects. Even though the numbers of recognized languages are only 16, the dialects are estimated to be around 850.c. Prevalence of spurious brands and seasonal demand: - For any branded product there are a multitude of ‘local variants’, which are cheaper, and, therefore, more desirable to mass.d. Different way of thinking: - There is a vast difference in the lifestyles of the people. The kind of choices of brands that an urban customer enjoys is different from the choices available to the rural customer. The rural customer usually has 2 or 3 brands to choose from whereas the urban one has multiple choices. The difference is also in the way of thinking. The rural customer has a fairly simple thinking as compared to the urban counterpart.
  24. 24. Theconcept is to make the product different from those of its competitor. When we look at theIndian Ice Cream market we see that the leader’s naturals have constantly maintained itsmarket leadership by constantly differentiating on the basis of new flavors.And coming up with line extensions with regular frequency. The only alternative for Ice AgeLtd. to survive in this industry will be to differentiate itself. This differentiation could be onthe basis of the marketing mix. (Product, Price, Promotion, Place) Thus, as per the differentfactors of marketing mix 4 Different strategies are made to market in the developing cities inIndia.
  25. 25. “Ice Age” – the healthy ice cream parlor offers a wide range of sugar free and fatfree ice creams. The ice creams are specially made keeping in mind all the healthconscious people as well as youth and people who suffer from illness like diabetes. Ice Age is a healthy ice cream parlor which targets the higher middle class andrich class of the society. Due to the variety of flavors and the specialty of being sugar free and fat freemakes the Ice Age Ice Creams more popular among the fitness and health consciouspeople. Ice Age targets the market where people are ready to buy healthy junk food due totheir taste buds and the fact that Ice Age Ice Creams are totally fat free and sugarfree with the same original taste.Hence Ice Age Ice Creams targets the market where people from age group 1 year to80 years can enjoy their favorite ice cream keeping in mind health conscious people,diabetic people, young people, etc…
  26. 26. Segmentation variables Several variables differentiate consumers who prefer different kinds ofDesserts, such as frequency of consumption, price sensitivity, relative importance of calories vs.taste, consumption occasion (at home, at work, at a social event, during recreation or at arestaurant), and desired serving size. The two most important variables are probably pricesensitivity and the taste-calorie tradeoff.The reason that price sensitivity is especially important is that some consumers will pay highprices for a product of high quality. Therefore, one might be able to make large margins sellingto that market. On the other hand, there is a large market that will not buy desserts that arepriced too high; therefore, some of the manufacturers will want to provide value-priced frozendesserts that may sacrifice quality somewhat. Consumers today tend to be increasingly healthconscious, and many will therefore want to limit the amount of calories in the desserts theyconsume. On the other hand, desserts are consumed for pleasure, and other consumers areunwilling to sacrifice the taste provided by calorie-rich desserts. There are also certain peoplewho have high metabolisms or engage in strenuous activity, leaving them with less worry aboutweight gain. Frequent or “heavy” users of frozen desserts would a great target, but this groupis not readily identifiable and reachable—these consumers are not likely to have distinct mediahabits or to frequent particular stores, for example. Serving size preference is an importantissue, but is addressed already to some extent by price sensitivity.
  27. 27. Segments Based on Combinations of VariablesPrice sensitivity is clearly a matter of a degree, with each consumer being somewhere on thecontinuum from extremely price insensitive to extremely sensitive. However, it seems reasonableto divide consumers into insensitive, value-conscious, price sensitive, and highly price sensitivegroups. In terms of the taste-quality dimension, reasonable categories might be taste dominated,balance seekers, and calorie “misers.” With four levels of price sensitivity and three levels oftaste-calorie tradeoffs, twelve combinations emerge. The more important segments will bediscussed. “Price Insensitive Indulgers” are consumers who take their dessert experiencesseriously and will let neither price nor calories get in the way of their desserts. These consumerswant high quality ingredients and tend to be very brand conscious. Because their high level ofinvolvement, these connoisseurs will often exchange tips with each other on what to try. Theycan be quite unforgiving to the brand if they have a bad experience. Often, they buy fromspecialty stores, such as bakeries, but may also indulge in super-premium ice cream. The“Dessert Pragmatists” represent a large group of consumers who enjoy good desserts but areconcerned about both price and quality. They are willing to pay more money for a good dessert,but will tend to switch brands if their favorite dessert is not on sale. They care about taste andwill not buy a low fat concoctions without taste. On the other hand, they tend to avoid highfat ice-creams. They tend to buy branded products and pay attention to calorie contents on thecontainers.“Value Gluttons” are concerned about price but are less concerned about calories. A dessert hasto be relatively inexpensive for them to buy it. They therefore often buy regional and storebrands. They buy ice cream and other sweets frequently and eat large portions.“Sophisticated Waist liners” are greatly concerned about their figures and dread calories. Thisgroup predominantly consists mostly of women. Some are affluent while others are willing tomake financial sacrifices to stay healthy. This group enjoys sophistication in selecting highquality products and is very status conscious. Often, this group will prefer small serving sizesof rich desserts, and desserts are often consumed in a social setting. This group tends to shop inupscale supermarkets and in convenience stores.“Budget Conscious Realists” consist of consumers who are very price sensitive and aremoderately concerned about calories. Typically, this group includes modest income families,large families, or families headed by a single parent. Parents are concerned about the amount of
  28. 28. calories that they and their children consume, but money is limited, so they tend end up buyingwhat is less expensive. This group tends to buy what is on sale, generics, or store brands.Strengths: • Less fixed cost required • Healthy • No side effects • Less consumption of sugar • Less consumption of fats • Reduces chances of illness like diabetes • Useful for health conscious people • Tasty with health • Variety • Eco-friendlyWeaknesses: • Slightly high in price due to use of special products
  29. 29. Opportunities: • Introduction of new flavors • Easy in achieving break even point • Prices can be reduced in short runThreats: • Lot of competition from existing Ice Cream parlors offering sugar free ice creams
  30. 30. Ice Age Ltd… introduces Ice Age Ice Creams – The Healthy Ice Cream Parlorwhich brings to you a new generation of ice creams.There are many choices in today’s ice cream case to suit a wide variety of consumerstaste. There is plenty of information on food labels, but what does it really mean?Where Ice Age does stands?? Ice cream is a frozen food made from a mixture of dairy products, containingat least 10% milk fat. "Reduced fat" ice cream contains at least 25% less total fat than thereferenced product (either an average of leading brands, or the companys ownbrand.) "Light" ice cream contains at least 50% less total fat or 33% fewer caloriesthan the referenced product (the average of leading regional or national brands.) "Low fat" ice cream contains a maximum of 3 grams of total fat per serving "Nonfat" ice cream contains less than 0.5 grams of total fat per serving.
  31. 31. • 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• Variety of flavors for the first time in sugar free and fat free concept• More than 30 different flavors to choose from• Same taste
  32. 32. Ice Age Ltd… will be establishing its marketing throughout Mumbai. Ice Age icecreams being an entirely new product in the market will initially operate only inMumbai till further expansion.Ice Age ice creams being fat free and sugar free requires some extra indegrients andproducts which increases the cost of the ice cream by 15 – 20 %. The segmentationof Ice Age ice creams is done on the basics of “Demographic segmentation” and“psychographic segmentation”. Keeping this segmentation in mind the managementhas taken steps to open its shops at the following places in Mumbai: • Bandra (west) • Pedder road • Inorbit mall (Malad) • Atrea mall (Worli) • R mall (Mulund)The main production of all the products will be done at the main unit based at“Vasai” and then will be transported to all its shops at different places all overMumbai.
  33. 33. Push promotion strategy involves getting the retailers/dealers to vouch for your product bygiving them larger profit margins and giving them incentives for the number of sales of yourproduct that are made from their shops/showrooms.Pull promotion strategy involves promoting your product on a very large scale and making itvisible on the market, thus raising the customers curiosity about the product and henceinducing them to buy it.We will give all the retailers/direct-dealers a good profit margin than our competitors areproviding them but not at the initial stage because we are focusing to attract our target marketusing diversified means of promotions and advanced technology to our customers at reasonableprice. We will also give them incentives for vouching for our product at a later stage as wesettle down in the market. Hence we have decided not to go for push promotion strategy atpresent but instead we have decided to go for pull promotion strategy. ℑ Television advertisements: Advertisements to promote and market our product will be shown on leading television channels. Major music and family channels will promote
  34. 34. Ice Age Ice Creams as they will reach out to the youth as well as all age groups. Star, Zee, Sony and Doordarshan etc will be our main promoters.ℑ Radio is the medium with the widest coverage. Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural areas, whether or not listeners actually own a set. Many people listen to other peoples radios or hear them in public places. So radio announcements will be made and advertisements will be announced on the radio about the product features and price, qualities, etc.ℑ Print Ads: Daily advertisements in leading newspapers and magazines will be used to promote the product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various other locations.ℑ Workshops and seminars: Workshops and seminars will be held in colleges to make people aware about the company and product features, its affordability and vast distribution network.ℑ Banners, neon signs: Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and shops to promote our range of flavors.ℑ Booklets and pamphlets: Booklets will be kept at ice cream parlors for the customer to read. These booklets will provide information about our company; the products offered which suits the customers need according to their taste.
  35. 35. The pricing strategy adopted by Ice Age Ltd. for its two wheeler electronic bikes isPENETRATION PRICING because it is a total new brand, which is entering amarket, which is already facing immense competition. And breaking thiscompetition and attracting new requires quality product at low price. Hence ourproduct will be priced low which will be economical and will encourage newbuyers. Hence we have adopted the penetration pricing method for capturingmarket share and establishing ourselves in the market.After considering all the factors i.e. cost of production, transportation cost, storecharges, etc… and after analyzing this data the finance manger Mr. JustinD’costa coated the price list according to the material requirement of the productand the making charges with considering all other of the store also.According to Mr. Justin D’costa the cost of per scoop of ice cream will Rs. 35which would earn the company a profit of 20% on cost.
  36. 36. After deep research and market survey it was found out that the company willmeet its break even point of production within 1 year of its expected sales of 50000units per month.Ice Age Ltd… being one of its kinds, having a variety of ranges in sugar free andfat free ice creams, the management decided to launch such a unique product in theheart of the country: Mumbai.Since the first manufacturing and selling unit of the company is set up andfunctioning in Mumbai, the product launch was also held in Mumbai.The launch of Ice Age Ice Creams Parlor was given to FountainHead Promotionand Event Pvt.Ltd… The launch was held at “Ra: lounge” at phoenix mills on20th September 2006. All the party event, guest list and management and co-ordination of the launch were taken care by Mr. Akash Deep Sen. the seniorexecutive of the FountainHead Promotion and Event Pvt.Ltd…To promote our product in an entirely new market and since our product is entirelya new concept in the market Mr. Akash Deep Sen. Arranged an excellent guest list.The guests invited on the launch were basically top role models, ramp models, bestdoctors who promote healthy eating, film stars, high profile diabetations, healthconscious people on small as well as big screen of bollywood and top gym owners.All the guests were asked their opinions on the new concept of healthy eating.Their opinion was a treasure for our company which would be help full duringfurther expansion and customer satisfaction.
  37. 37. Ice Age Ltd… is a entirely new concept in the segment of frozen deserts, becauseof this reason the management has decided that currently there would only be 5outlets of the companies ice cream parlor through out Mumbai. As the companyprogresses in 3 – 4 months the management has lots of plans about the futureexpansion of the healthy eating concept through-out state, through-out the countryand then through-out the world….. • Give franchise to reputed dealers through-out Mumbai. • To merge with “Yoko Sizzlers” and open our ice cream outlets at all Yoko sizzlers outlets. • To slowly start a manufacturing unit first in Pune, Goa, Madras, Delhi and Calcutta. • Slowly capture all aspects of healthy eating i.e. introduction of healthy snacks, juices, sweets, cakes, chocolates, etc…. • One of the dreams of the promoters of Ice Age Ice Creams is to spread the concept of healthy eating through-out the S.A.A.R.C countries.
  38. 38. In today’s world of ice creams, Naturals, Baskin and Robbins, Gelato, etc… arethe leading ice cream parlors in Mumbai. Their combined sale figures through-outthe month is about 1,50,000 units. Their advertising strategies, sales promotions,offers, etc… are not on a continuous stretch because these parlors are in the marketfor sometimes……Ice Age ice creams being on a starting stage, will have a good advertisingstrategies, sales promotions, offers to attract more customers and to make themmore familiar to our brand. Due to our new technique of production anddistribution, even after entering the market on platform basis and investing moreon the special inputs our cost nearly 15% more than the cost of our competitors, butwith the concept of healthy eating we accept our sales to be around 50,000 to60,000 units per month.Due to our special fat free and sugar free ice creams all age groups will be able toenjoy the same old taste of ice creams but with a dash of health.