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Individual Assignment

Topic: Ice Cream Industry in Bangladesh


Course: Strategic Management
Course Code: MGT 601
Section – 1



Prepared For: Dr. M. Nazmul Amin Majumdar
Prepared by: Mohammed Fahad
Student ID: 12164007



MBA Program, School of Business
BRAC University
Date: 13 July’14

Introduction:
History and Current position:
The first branded ice cream, Igloo, was introduced in 1964 in the national region, which was
later nationalized right after the liberation of Bangladesh.
Later during the early 80’s it was acquired by Abdul Monem Ltd. This is when Polar entered the
market creating the first rivalry.
After 10 years since privatization, Igloo got to be the market leader after conducting heavy
promotional campaigns. Since then it has retained its position among all major domestic and
foreign brands in the market.
Description of the industry:
Market structure:
National ice cream market is worth around TK 6.5 billion, of which 85% constitutes the branded
ice cream makers and the rest of the 15% are the non-branded producers.
Major players in the market:
The major players in the industry that make up the 70% of the total market are:
 Igloo / Mi Amore– Abdul Monem Ltd.
 Polar – Dhaka Ice Cream Ltd.
 Kwality – Kwality Food Products Ltd.

Recently the market witnessed the emergence of a new brand in the market – Bellissimo, under
Kazi Foods Ltd. The brand is targeted towards the upper middle class population in the city.
Other brands serving the outskirt areas around the city are:
 Milk Vita – Bangladesh Milk Producers Cooperation Union Ltd.
 Savoy – Sena Kalyan Shangstha

These two brands are in same strategic group selling competitive-priced brand ice cream -
aiming to raising revenue for a cooperative fund.
15% of the total current market is occupied by the non-brand ice cream makers operating in the
suburb and rural regions.
Apart from domestic ice cream makers there are other foreign brands in market like -
Anderson’s, Monvenpick, Buskin-Robbins, and Haagen-dazs.
Products and services:
All these manufacturers either sell ice creams in ice cream parlors or takeaway – single or family
packs through traditional distribution channels.
Consumer segments:
There are two main consumer segments:
1. Middle and upper middle class craving for branded and premium branded ice creams.
2. Working class who are satisfied with the lower priced non-brand ice creams.

Major Challenges and Future Outlook:
One of the challenges is coping with the bargaining power of the suppliers. Since most of the
ingredients of ice cream are imported from abroad – it has a strong impact in pricing the end
product.
The biggest challenge in the industry is the “Entry Barriers” in the branded segment. It requires a
huge investment for machineries and technologies necessary for the complex process of ice
cream manufacturing.
Moreover the infrastructure is also not strong enough in the distribution channel.
Conclusion:
The ice cream industry is still at growing stage. Only with proper investment and strategy the
industry can be quite attractive for a business.

References:
 Parvez, Sohel. "Brand war heats up in ice cream market." The Daily Star. The Daily Star, 17 Apr.
2013. Web. 12 July 2014. <http://archive.thedailystar.net/beta2/news/brand-war-heats-up-in-
ice-cream-market/>.
 Miah, Robin. "Evaluation of entry ice cream business for Unilever Bangladesh ltd." BRAC
University Institutional Repository, 2 Sept. 2013. Web. 12 July 2014.
<http://dspace.bracu.ac.bd/bitstream/handle/10361/795/06204032.pdf?sequence=14>.
 "Assignment Point - Solution for Best Assignment Paper." Report on Ice Cream Companies of
Bangladesh. AssignmentPoint.com, n.d. Web. 12 July 2014.
<http://www.assignmentpoint.com/business/marketing-business/report-on-ice-cream-
companies-of-bangladesh.html>.