A Business Plan on

Ice Cream Parlor

Cream Dream
In Bangladesh Context

Yeasir Hasan Malik

 Table of Contents
1. EXECUTIVE SUMMARY .......................................................................................................................... 5

2. INTRODUCTION OF THE REPORT .............................................................................................................. 8

2.1 Origin of the report ............................................................................................................................. 8

2.2 Objective of the plan........................................................................................................................... 8

2.3 Scope ................................................................................................................................................... 9

2.4 Methodology....................................................................................................................................... 9

2.5 Limitation ............................................................................................................................................ 9

COMPANY IN BRIEF ..................................................................................................................................... 11

3.1 Background ....................................................................................................................................... 11

3.2 Introduction to the service ............................................................................................................... 12

3.3 Vision................................................................................................................................................. 14

3.4 Mission Statement ............................................................................................................................ 14

3.5 Business objective ............................................................................................................................. 15

4. THE VENTURE .......................................................................................................................................... 16

4.1 Name and address of the project ..................................................................................................... 16

4.2 Location of business .......................................................................................................................... 16

4.3 Legal status ....................................................................................................................................... 17

4.4 The size of business........................................................................................................................... 17

4.5 Statement of financing need............................................................................................................. 18

4.6 Scope of Operations.......................................................................................................................... 18

5. AN INDUSTRY OVERVIEW........................................................................................................................ 19

5.1 Characteristics of ice-cream retail industry ...................................................................................... 19

5.2 Why some ice-cream business does well.......................................................................................... 19

5.3 Keys to success .................................................................................................................................. 20

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 5.4 SWOT Analysis of Business................................................................................................................ 21

5.5 Environment scanning ...................................................................................................................... 22

5.5.1 The Legal and Political Environment .......................................................................................... 22

5.5.2 Technological Environments ...................................................................................................... 23

5.5.3 The Social and Demographic Environment ................................................................................ 24

5.5.4 Economic Environments ............................................................................................................ 26

5.5.5 Natural Environments ................................................................................................................ 27

5.5.6 Threats of existing competitors ................................................................................................. 29

Other forces of competition ................................................................................................................... 32

Competitive strategy............................................................................................................................... 32

6. ORGANIZATION STRUCTURE ................................................................................................................... 33

6.1 The organization structure................................................................................................................ 33

7. OPERATIONAL PLAN ................................................................................................................................ 34

7.1 Distribution and Storage ................................................................................................................... 34

7.2 Resource requirement ...................................................................................................................... 34

7.3 Logistics ............................................................................................................................................. 36

7.4 Utilities .............................................................................................................................................. 37

7.5 Production......................................................................................................................................... 37

7.6 The menu .......................................................................................................................................... 37

7.7 Suppliers............................................................................................................................................ 38

7.8 Facilities............................................................................................................................................. 38

7.9 Hours of Operation ........................................................................................................................... 39

7.10 Employee Training .......................................................................................................................... 39

7.11 Bill-collection process ..................................................................................................................... 39

7.12 Controls ........................................................................................................................................... 39

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8. MARKETING PLAN ................................................................................................................................... 40

8.1 MARKET ANALYSIS - Long term prospects and trends ...................................................................... 40

8.2 The Market ........................................................................................................................................ 40

8.3 Target marketing strategy................................................................................................................. 42

8.4 Demand analysis ............................................................................................................................... 42

8.5 The Marketing Mix ............................................................................................................................ 45

8.5.1 The product .................................................................................................................................... 45

8.5.2 Price ............................................................................................................................................... 50

8.5.3 Physical facility ............................................................................................................................... 52

8.5.4 Promotion ...................................................................................................................................... 52

9. FINANCIAL PLAN...................................................................................................................................... 56

9.1 Sales forecasting ............................................................................................................................... 56

9.2 Ongoing costs .................................................................................................................................... 57

9.3 Important Assumptions .................................................................................................................... 61

10. CONCLUSION ......................................................................................................................................... 61

11. Reference .............................................................................................................................................. 62

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 1. EXECUTIVE SUMMARY

The main items for sale will be hand dipped ice cream and yogurt cups/cones, sundaes finished
with a variety of toppings such as hot fudge, caramel, butterscotch or fruit, banana splits shakes
malts, and ice cream sodas and floats. Most of these items will be consumed immediately on
the premises. The ice cream store will also sell ice cream cakes, traditional gourmet cakes,
birthday cakes, and Cola products. The store provides extensive indoor seating for the food
court customers and a kid’s corner with a small indoor playing ground for children. In addition
to hand-dipped ice cream sales, the Shop anticipates doing a material business in the sale of
both ice cream cakes and gourmet traditional cakes and birthday cakes. These cakes will be
displayed for immediate sale at all times during business hours and can also be produced in
quantity on a special order basis for caterers and parties.

Revenue will be primarily from the sale of hand-dipped ice cream and related products
consumed. The store will be located in Dhanmondi. The store’s primary customers will be
young people from the surrounding locality as well as shoppers who converge in the area from
other parts of the town and who will have hand dipped ice cream and other products on an
impulse basis during their shopping trip, or as a dessert treat upon completing a meal from
nearby restaurants. The store owners also anticipate that over the long run many patrons will
make the shop their primary destination due to name recognition and product quality.

Project costs are projected to be Tk 3000000 which includes advances and prepayments,
equipment purchases, opening inventory, and working capital needs.

Products will be fresh daily and have a maximum shelf life of 3 days. Products will be displayed
in glass cabinets. If a product is to be eaten at the store, it will be served on a glass plate. If it is
to be taken home, the product will be placed into a bakery box, which bears the Cream Dream
logo. Cream Dream will implement a strong advertising and promotion strategy. The store will
mainly use the following promotional tools: Billboards in areas of competitors, newspaper
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advertisements; sponsorship of community events; use of discount coupons. The store will be
kept extremely clean and well stocked at all times. Glass counters will be used as well as clearly
viewable kitchens to allow customers to view all steps in the preparation process. The store
layout is important, as it will play a major role in influencing the patrons’ perception towards
the physical state of the store. For example, the kids’ corner will be placed somewhere where it
will be visible to the customers from the shop front. This will primarily attract the attention of
passers by like children. The reasons why these marketing strategies have been chosen are that
these types of marketing strategies are relatively cheap and are within the budget. They were
also chosen on the belief that they are an informative and effective way of promoting the
business, in order to enhance the business’s success.

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 Part – A

2. INTRODUCTION OF THE REPORT

2.1 Origin of the report

BBA academic program is the building up of the theoretical knowledge about business
administration which is the base of practical knowledge. Project work is an attempt to provide
business students an orientation to a real life business situation in which we can observe and
evaluate the use and applicability of the theoretical concepts which were taught in the
classrooms. This report is the out come of the work.

2.2 Objective of the plan

The purpose of this business plan is to outline the parameters under which the principals will
pursue the construction, development, and operation of an Ice-cream shop. The business plan
will
 Describe the business and service
 Analyze the ‘ice-cream shop’ market
 Analyze human resource and logistics requirement
 Define “Cream Dream” target market
 Analyze the marketing plan in terms of assessing the store’s competitive prospects,
identifying the pricing objectives and methods and the distribution channel of the
product and finally analyze the effectiveness of its promotional strategy
 Analyze the type of organization, including forms of ownership, and management
structure
 Create a financial plan for the business, including sales forecasts, financial statements
and cash flow projections
 Assess the level of risk to be faced, including contingency plans

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2.3 Scope
The business plan will for a five year period from 2012 -2017. Here only Dhaka has been
considered as the possible market and target market is only residents of Dhanmondi area. The
business plan also tries to focus on the internal as well as the external forces that will influence
the set up of an ice-cream parlor in Dhanmondi. Only the parlors located in Dhaka were
identified to gain an insight to the parlor business.

2.4 Methodology
The business plan has been prepared mainly based on primary research. The primary research
is based on the interviews of the managers of ice-cream parlors such as Igloo Gelateria, Club
Gelato, and MovenPick, American Soft Ice Cream, Rainbow, and other persons related to the
ice-cream business. The questionnaire was basically open-ended and the information was both
quantitative and qualitative.

Informal Focus Group Discussion was conducted among ten people, consisting of students as
well as other people. The respondents were within the age group of 16-35 and different income
groups. In-depth interviews with potential customers were also conducted in order to get an
overview of their perception and come up with the market characteristics and opportunities
related to it.

Secondary research has been used but not to such an extent. The secondary data from books,
Internet, and journals was used to gain more detailed information about starting a venture.

2.5 Limitation
 The business plan consists of data that covers only some of the areas of Dhaka city.
 The business plan has been prepared mainly based on primary data and any inaccurate
information given by the respondent may distort the plan.

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 A proper scanning of the environment may not be possible due to lack of experience
and ability.
 The analysis may not be very accurate since only a few parlors have been studied.
 The estimated budget costs, pro forma financial statements as well as inventory and
sales may not be completely accurate.

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 PART – B

COMPANY IN BRIEF

3.1 Background
This business plan has been written on the instructions of Professor MD. Al-Emran. The name of
the “Ice-Cream shop” is Cream Dream. The name is in keeping with the ‘ultra-modern’ image of
the store such that it appeals to the target group- which mainly includes children, young
adolescents-both in their early and late teens, and adults below 30 years of age. Since people in
this age group have a predilection for fun and parties, they tend to welcome unusual
experiences and prefer exotic tastes, grandeur, and loudness. This is exactly what Cream Dream
promises to deliver. Starting from its flavor, amenities to the exquisite atmosphere, Cream
Dream parlor intends to make its mark in ice-cream selling business.

Modern living has created new demands for the younger, upscale
population. As living styles of people in Dhaka city are changing, more
and more people in the middle and upper-income range now consider
eating out as a recreational part of their day-to-day life. Dhaka is now
teeming with fast-food joints, Chinese-Italian-Thai-Indian restaurants;
Ice-cream shops- all of which are popular hang-out places for the younger population. As living
standards improve and the metropolitan life continues to prosper, the retail food industry will
account for a greater proportion of consumer spending. To take advantage of this burgeoning
market, a large number of ice-cream parlors- offering a varied assortment of services have
already sprouted in different parts of Dhaka city.

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 3.2 Introduction to the service
The name of the ice cream parlor is “Cream Dream”. This parlor will
be promoted as an ice-cream boutique. The ice creams offered here
will be the highest quality with not only the typical ice cream flavors
such as chocolate and strawberry but also include imported flavors-
including tropical and Mexican flavored syrups- that cannot be
found in other ice-cream parlors. The wide diversity of ice creams
will distinguish Cream Dream from the other ice-cream parlors and suppliers.

Though there are certain ice-cream parlors operating in city, very few meet the customers’
expectations. Some may offer delicious ice creams but lack the proper environment; some
provide the setting but not the taste. Cream Dream will provide a unique blend of quality, fun,
and flavor. There will be a music system and spacious sitting arrangements with magazines and
newspapers.

Cream Dream will obtain its supply from a local company and hence will be promoting product.
Cream Dream also plans to provide games arcade for the young people. This will provide more
entertainment for the customers and an additional earning for Cream Dream. There will also be
a Kid's Corner offering a colorful maze of tubes, slides, and tunnels. Kids can climb, crawl, and
swing within the indoor playground.

The main items for sale will be hand dipped ice cream and yogurt cups/cones; sundaes finished
with a variety of toppings such as hot fudge, caramel, butterscotch or fruit, banana splits shakes
malts, and ice cream sodas and floats. Most of these items will be consumed immediately on
the premises. Cream Dream provides extensive indoor seating arrangements. Included among
the different imported tropical and Mexican flavored syrups that will be sold are: Wild
Watermelon, Pine Colada, Pink Lemonade, Guava Grape, Cherry Jubilee, Root Beer, Kiwi,
Strawberry, Blue Bubble Gum, Orange Mango, Raspberry Red, Luscious Lime, Bodacious
Banana, Tamarind, Melon, and Papaya. There will be other flavors available as well such as
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Spearmint, Black Cherry, Cinnamon, Blueberry, Peach, Red
Apple, Tutti-Frutti, Coconut, Cola, Green Apple, Tangerine, and
Vanilla. Also, more commonly found low-end products to be
sold will include ice cream in vanilla and chocolate flavors.

It is important to note that in our health conscious society,

many are moving to healthier alternatives. Normal soft serve contains 4.5-6.5% fat on average,
while Low Fat alternatives contain less than 1% fat. They also contain much less calories per
serve than regular Full Cream Soft Serve and are therefore classified as ‘Low Calorie’. Low
calorie cones, sundaes & shakes can be sold at a premium price. The product cost per serve
may only be 8-10 taka more expensive than the high fat alternatives. These will be sold as: Plain
sundaes & cones; Flavored sundaes & cones.

In addition to hand-dipped ice cream sales, the chain

anticipates doing business in the sale of both ice cream cakes
and gourmet traditional cakes and birthday cakes. These cakes
will be displayed for immediate sale at all times during
business hours and can also be produced in quantity on a
special order basis for caterers and parties. The Shop will have
two 3-foot wide, 4-shelf display cases for cakes. One 3-foot
display will be for frozen ice cream cakes, and the other will be
refrigerated for display of traditional gourmet cakes and gourmet birthday cakes.

Other products will include soft drinks (Sprite, Coke, Mountain Dew, Fanta and Diet-Coke), and
cappuccino.

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3.3 Vision
Cream Dream hopes to become the most popular ice-cream parlor within the first year of its
incorporation. It hopes to attract the most number of customers compared to any other ice-
cream parlor in the city. Cream Dream also plans to open two more branches in Dhaka city
(Gulshan and Uttara) by the end of 5 years and two outside Dhaka in Chittagong and Sylhet
within the next 10 years.

3.4 Mission Statement

The goals and objectives of Cream Dream are as follows:
"To deliver a quality product in a consistent, courteous, and timely basis in order to have the
customer return again for another satisfying, delicious treat; while at the same time earning a
reasonable return on the initial investment”

For an organization to be successful, the organization must ensure that the customer continues
to return to purchase the product, again and again. One way to ensure repeat business is to
provide consistency in both the product and service. Cream Dream product speaks for itself; the
service the shop provides will be a function of training, evaluation, and retraining in order to
deliver the service as courteously and in a timely manner. In order to earn a reasonable return
on the investment, along with the ability to repay debt, strict cost-control measures will be
implemented. These measures will include proper and prudent purchasing practices,
maximization of product distribution through strict adherence to weights, amounts and recipes
(portion control), effective utilization of personnel, and the constant search for ways to reduce
the cost of sales of our products without sacrificing quality and service.

The business will take care of its employees; that is, they will be paid well and given a share of
profits. The people will be paid according to their skills and abilities. In addition, each employee
will have the option of company-sponsored training courses. The store considers its customers
as its most important asset, and relies on them for feedback. The store will gladly accept all in-

14
store suggestions and test them for results. Cream Dream has a plan and its goals are clear: To
create a fun, entertaining, and respectful environment that generates sales of ice-cream and
beverages.

3.5 Business objective

Cream Dream Parlor will have these business objectives during
its first three years of operation:

 Cash break-even by the end of its first year of

operations
 Cash reserves before taxes of about Tk 500000 by the
end of its second year of operations.
 To be able to establish an environment that is both
friendly and pleasant to staff members and customers.
 To expand the business within the food industry
 To increase the number of stores by the end of the third year of operation

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 4. THE VENTURE

4.1 Name and address of the project

Name of the venture: Cream Dream

The reasons why this name was selected are that it will appeal to the target audience, easy to
remember as it is eye-catching and unique. Furthermore, the name will appeal to the store’s
target audience: children between the ages of 6 – 25 years.

The position strategy of Cream Dream will be that a trip to the ice cream shop should be fun
and memorable. All communication of Cream Dream will highlight this concept in the tagline
"Party in a Cone!" By focusing on entertainment, Cream Dream can create a party atmosphere
that will resonate in teenagers and college-age young people.

4.2 Location of business

Location is one of the most important factors that contributes to and distinguishes the success
of a business. The owners had various options in deciding on the location. However, a number
of factors played a dominant role in influencing their decisions. The predominant factors taken
into account in deciding on the location are:

 Upscale commercial business district (office and residential mix)

 High visibility location, near restaurants and theaters (popular tourist areas)
 Strong foot traffic counts, evening and weekend traffic
 Airports, Theme Parks, Hotel/Resorts, Universities

The owners of Cream Dream have chosen to establish their ice cream business in a place which
experiences a high volume of traffic on a daily basis.

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 Furthermore, the location of the business must be situated in a
place that is accessible and to target consumers. Cream Dream
Parlor will be a startup ice cream parlor located in a rented space
at Dhanmondi 8/A Dhaka. In recent years this location has grown
in popularity with food shops. It is adjacent to the classy
restaurants and fast food shops: Al Baik, The Bistro, Spinach,
Broccoli, and Fokhruddin Biriani House. Besides, it will attract
not only residents but also a large number of people who
frequent nearby schools, universities, offices, and shoppers. The exterior shop front
presentation and originality of ice cream will also appeal to them, as it is different from the
typical ice cream parlors.

4.3 Legal status

Cream Dream will follow the legal obligations of single ownership. Initially, the chain will begin
operation in Dhaka City. It will after some years expand and set up branches in Chittagong and
Sylhet.

4.4 The size of business

The size of the business is determined based on certain factors such as volume of business,
number of employees, financial resources, ownership, or control of materials, facilities, sales
territory, and nature of business activity etc.

In Cream Dream, the number of people employed will not be more than ten. The capital
invested will be about 30 lakh taka. The business is independently owned and operated. The
sales territory is not widespread and its business volume is also not that massive. Hence
considering all the mentioned factors, it can be concluded that ‘Cream Dream’ is a small
business concern.

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4.5 Statement of financing need
The finance for the project will be provided by the entrepreneurs. A loan of Tk1000000 will be
required. The owner will bear the remaining cost of the project. The total startup capital
estimated for the project is Tk300000.

4.6 Scope of Operations

Cream Dream will operate initially only in Dhaka. It aims to attract the locals mainly residents of
Dhanmondi, Mohammadpur, Jhigatola, Mirpur. The Cream Dream parlor will offer dessert
items: ice-cream and light beverages. The relationship with the suppliers is very important for
Cream Dream. This is due to fact that the parlor does not produce its own ice-cream or
beverages and is highly dependent on the local manufacturers of those items. The staffs
employed have to be well qualified as the business is basically service related.

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 5. AN INDUSTRY OVERVIEW

5.1 Characteristics of ice-cream retail industry

 It is service-oriented
 It is a monopolistically competitive industry with every firm facing a downward sloping
demand curve- since there are many competitors; the demand for the services of each
firm is highly elastic.
 Relatively low entry barriers. Though establishment costs are considerably high they are
not significantly high to deter new entrants.
 Low degree of technological sophistication
 There is some scope for Economies of scale in particular for those with high fixed costs

5.2 Why some ice-cream business does well

Though the location of a retail ice-cream business is the
single most important element for its success - or lacks of
it - there are other reasons why some ice-cream shops
may not be doing well:

Lack of an effective marketing strategy: If one does not

know how to attract customers when one first opens and
how to sell ice-cream, ones revenues may be greatly reduced; it may take longer to return the
investment and it will be harder to build a great number of loyal daily customers, which is the
base of any successful ice-cream parlor business.

Improper shop design and equipment layout: In most shops, the work area is not designed for
speed and efficiency of service, so it takes much longer to prepare the drinks, the customers are
inconvenienced by waiting longer than needed, the sops sell less in a given time period, tire
their employees sooner and irritate their customers.
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Poor taste of the product: If the customers do not like the taste of the ice cream and espresso
based drinks because of faulty preparation techniques (not equipment or coffee), they either
won't order it again or won't come back. Not having a true standard of product taste
comparison, most of the owners, managers, and employees of coffee bars/ice-cream parlors in
this country have never tasted a properly prepared "cappuccino" or a waffle cone!

5.3 Keys to success

The keys to success are:
 It will offer the largest variety of ice-cream and
dessert items available in town. Product quality will be
high including a large variety of tropical flavored syrups.
 Business will be located on a major city highway,
next to several housing
 Developments, schools and universities,
community centers, shopping malls, plazas (Anam Rangs Plaza, Rifles Square, Meena
Bazar, Shop n save) and along major restaurants.
 Business has the potential for expansion into other prosperous areas of the city.
 The area attracts a very large traffic from different parts of Dhaka city
 The store will offer loss leaders and other promotions that bring customers into the
store, to buy goods and to generate awareness of promotional events.
 The business will provide for the satisfaction of 100% of customers. As customers are
very valuable, the shop will design a customer care plan to manage complaints,
implement employee and customer feedback, manage supplier accounts, and predict
future conflicts.
 Establish long-term relationships with great distributors

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5.4 SWOT Analysis of Business
Strengths
 The business is situated in a popular location- right in the heart of Dhanmondi shopping
vicinity.
 The employees of the business are well trained, experienced and qualified.
 The product is unique and original made from the highest quality ice cream.
 The business’ dedication to the customers need through quality customer service.
 Wide diversity of flavors along with special items for health conscious people.

Weaknesses
 Will not be able to offer enough parking space.
 The capital is limited to the contribution of the owner and the bank loan. Initial
financing will not be difficult due to solid credit and the low inventory depreciation rate,
but ongoing financing will be more difficult to obtain.
 Dependent on external source for supply for ice cream.
 Very high rental.
 High establishment costs.
 Likely to be considered as high-priced.

Opportunities
 The business will be able promote itself as a dessert joint for the nearby restaurants.
 The market is far below saturation level and most of the competitors do little
advertising. Most local competitors do very little in the way of marketing. This would
give Cream Dream the opportunity to develop the market.
 As ice cream parlors are popular, chances of expansion is higher.
 Lots of schools and universities proving close proximity to target market.

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Threats
 Located near major competitors.
 New fast-food outlets can emerge nearby.
 Social changes within the consumer market such as health conscience attitudes.

5.5 Environment scanning

All business enterprises operate in a broader environment with forces and trends that shape
opportunities and poses threats. The companies need to identify these “non-controllable”
forces and respond to them accordingly. Identification of these forces will help the companies
to deal with different kind of situations and reap as much benefit possible. The following
external forces have considerable influence on any organization’s system. And a change in any
one of them can cause changes in one or more of the others. One thing that is common among
these forces is that they are subject to change and at an increasing rate. These forces are
largely uncontrollable by management; but they are not totally uncontrollable. A company may
be able to influence its external environment.

5.5.1 The Legal and Political Environment

The political and legal environment refers to the nature of relationship between various areas
of government and the business organization and hence affects the stability in which
organizations can effectively plan and operate. The legal environment includes public policies,
laws, government agencies, and pressure groups that influence
and regulate various organizations and individuals in society,
important areas include patents, trade marks, trade licences and
taxes. High rate of tax rate may discourage an investor whereas a
tax holiday or subsidy may encourage the investor to start that
business. The tax imposition will be income tax at the rate of
25% and 15 % VAT will be charged on the products sold

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The political scenario of Bangladesh is not very promising for business ventures due to the
occurrence of regular ‘hartals’. The stores are kept closed during hartals in fear of vandalism.

The legal environment does not impose specifically any constraint on the ice cream business.
The entrepreneurs will obtain a trade license to operate the parlor. Cream Dream will be
following the Employment of Labor (Standing Orders) Act 1965 and also the Environment
Conservation Act of 1995. Cream Dream also aims to follow the existing food regulation laws of
the country and will maintain the international standard of food quality in absence of adequate
local laws. Bangladesh also requires that every restaurant or food shop acquire the following
licenses:
 Environmental License – issued by the Directorate General of Environment (DGE)
 Sanitary License – issued by the Department of Public Health of the Dhaka City
Corporation (DCC).

5.5.2 Technological Environments

Manufacturing of ice-creams does not require very high levels of technology. Ice cream parlor
such as Cream Dream will provide its service from manufactured ice cream, the involvement of
technology is quite low. The few equipments or tools that will be used by the ice cream parlor
are:
 Cone manufacturing machine
 Machine to produce soft ice cream
 Coffee manufacturing machine
 Refrigeration system
 Ice cream scoops
 Video-game machines
 Electronic cash register

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The use of technology in the manufacturing of cones, soft ice cream and coffee has reduced the
time of preparation. Proper refrigeration system is a necessity; otherwise the frozen
components will melt or deteriorate in terms of quality. The use of electronic cash register will
reduce the time and paperwork on part of the cashier.

The ice cream parlor offers frozen desserts and beverages such as coffee, soft drinks (canned
and fountain) etc. All the items require constant supply of electricity to run the machines,
specially the refrigerator and preserve the condition of the food items. If the ice creams soften
and re-freeze, the ice crystals, which affects the taste. Hence, the lack of stable power supply
may affect the parlor tremendously. As load-shedding is a common problem, unstable power
supply is likely to have some influence on the business’s performance.

The unstable supply of electricity or constant fluctuation of the voltage may also cause damage
to the equipment used for parlor. To overcome the damaging effect of inefficient electricity
supply, the entrepreneurs are often compelled to obtain expensive substitutes such as UPS and
generators. Purchase of such items will increase the start-up costs of the parlor which may lead
to an increase in price.

5.5.3 The Social and Demographic Environment

Any business venture is much affected by the demographics and the values of the society
within which it operates. The ice cream parlors present in Bangladesh are not so advanced and
maybe considered to be in their infant stage. The existing diverse array of social phenomena
often plays a significant role in influencing the growth of business enterprises.

National Culture
The wide availability of media and globalization has a major impact on lifestyles and business of
Bangladesh. The younger generation of Bangladesh is more willing to accept the changes and
adopt the newer ways of living. It identifies eating out in restaurants and parlors as new sources

24
of entertainment. The price of ice creams is quite low in the ice cream parlors which attract
customers.

Demography
Demography refers to the measures of various characteristics of the people and social groups
who make up the society. Population structure, education, migration are some examples of
demographic characteristics.

Population structure
The most populous age group in Bangladesh at present is 18- 45. This population structure
provides a promising future for the different modern food sectors such as fast food shops and
ice-cream parlors. This age structure is more open to new ways of living. They are fun loving
and facilitates the adoption of modern ways which will promote the parlor business. Currently,
children drive a large part of the ice cream industry. Households with children are the lead
consumers of ice cream and this number is growing at an increasing rate. The preferences of
consumers vary according to age and gender. According to consumer research children and
teenagers from high-income households eat more types of ice-cream products.

Level of education
The literate group of Bangladesh is increasing due to several factors. Government of
Bangladesh has realized the importance of education and has taken several steps to improve
the literacy rate in the country. Personal initiatives are taken by parents to send their children
to school.

Education not only increases the knowledge base of a person but also helps in the overall
improvement of a person’s thinking pattern and in building character. It makes it easier for
people to appreciate different lifestyles, creates interest in trying out exotic items. The parlor
business that was almost negligible ten years back, at present holds a potential future, with

25
improvements in education level playing a contributory role in increasing adaptation among the
younger age groups.

5.5.4 Economic Environments

The overall condition of the economic system in which the country operates comprises the
economic environment. The economic environment is comprised of purchasing power, gross
income, disposable income, discretionary income, prices, savings, credit availability, and
general economic conditions. The general state of the economy-rapid growth, slow growth,
recession, or stagflation- influences the willingness of consumers to spend on luxury items. A
business unit can be much affected by employment, government revenue, balance of
payments, inflation, and interest rate.

Improvements in living standards

The income level of Dhaka city is growing at a staggering rate and there is an unprecedented
increase in the demand for luxurious products among people in the middle and high income
range. As industrial activity is on the rise and since employment is also increasing, the demand
for luxuries like premium ice-cream products is also likely to increase.

Employment Generation
Ice-cream parlors fall within the service sector and is also labor dependent. However, the
existing ice cream parlors in Bangladesh are small in size and do not employ huge number of
employees. Each ice-cream parlor may employ a maximum number of ten people hence the
number of labor absorbed here is very less. Parlors which have more than one branch employ
greater number of people. The emergence of numerous ice cream parlors in recent years
resulted in an increase in employment in this sector.

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Foreign exchange earnings
Most of the popular ice-cream parlors such as Move-n-Pick, Andersen’s, Club Gelato; etc
imports ice-cream either in manufactured form or the ingredients. This causes outflow of
currency. However, as Cream Dream will depend only on locally produced ice cream and very
few imported machineries, it will have negligible effect on the foreign exchange earnings.

Devaluation of Currency
Devaluation of the currency has a negative impact for certain ice-cream parlors as it increases
the cost of import. Most of the popular ice cream parlors face an increase in the cost of
production as they import the ice cream, either in the form of ingredients or prepared form.
The owners try to overcome the cost effect by charging higher price for the ice-cream. Hence,
parlors such as Cream Dream may face considerable difficulty in keeping prices competitive
considering that most of the items will be imported.

Government
The government does not offer any sort of economic incentive such as tax holiday for the ice-
cream parlors. The companies have to pay income tax and VAT of 15%. They also have to pay
the tax if they import materials from other countries. Moreover, the infrastructure base
regarding power supply is still poor. The parlors are forced to purchase UPS and generators to
prevent the huge wastes that it might otherwise endure. The parlors could have avoided the
increased cost if government had tried to provide a solution to the load-shedding problem.
Government can also help by providing small amounts of loan that will help the parlors to carry
out their own ice cream manufacturing plant or research and development work. This may
come as a part of government initiative to promote small and medium enterprises.

5.5.5 Natural Environments

Shortage of raw materials
Some of the flavors include natural ingredients such as nuts, fruits etc. Shortage of these
resources locally will increase the cost of production, as they will then have to be imported.

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Cream Dream employees will be kept informed about the shortage of water in the country and
hence avoid the wastage of water during washing and cleaning.

Anti-pollution pressures
Cream Dream will try to avoid those activities such as littering of wastes that damage the
natural environment. It will also try to promote product recycling by using recyclable paper
wrappings and paper napkins.
Competitive Environment
The market structure for ice-cream stores is monopolistic in
nature. Demand depends on brand loyalty of respective
customers and considering the potential of entry of new
entrants is high, the market is likely to become more
competitive. The ice cream parlors are quite competitive. There
is competition mainly from foreign firms, especially from Move-n-Pick, Club gelato; Andersen’s
who have been offering delicious ice-cream at high prices.

The customer’s buying characteristics play a significant role in determining the level of
competition among the parlors. Some customers prefer those places whose past performance
and the quality of the ice- creams have impressed them. Hence, even though the cost is very
high, customers still tend to go to those parlors. The price-sensitive customers mainly go to
parlors that ask for low prices. Some consumers believe that foreign products are better than
the domestic ones and prefer the foreign expensive ice-creams.

Some restaurants and fast food shops offer ice-cream along with their main menu but usually
they have very poor quality and taste. The difference is that the parlors offer a wider range of
ice-cream products. Customers often taste the different ice creams in various parlors and then
usually go for the lower price of similar quality of products.

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In addition to other ice-cream parlors, Cream Dream will be facing competition from any store
that sells ice-cream and beverages- anything that may be considered to be in the category of
desserts. Most ice-cream parlors offer basically two to three lines of food products:
 Ice cream and related products
 Beverages (coffee, slush, soft drinks etc)
 Pastry or other desserts (optional)

The items offered in ice cream parlors are often similar. The flavors are same such as chocolate,
strawberry, pistachio etc. The syrups are imported and
many varieties will be used to add exclusiveness to the
product. Hence, differences do exist in the taste and
also the type of sundaes and toppings offered by each
ice cream parlor. Some of the sundaes can also be
prepared based on the preference of the customer.
Other points of differentiation will be emphasized like in
terms of quality, quantity, arrangement, toppings, price, and surrounding environment.

5.5.6 Threats of existing competitors

There are several ice-cream parlors operating in Dhaka at present. The size of ice-cream parlors
is usually small. Some of the parlors operating currently in Dhaka city are:

BASKIN ROBBINS
The US-based Allied Domecq International's Baskin Robbins is an American ice cream chain has
four branches in Dhaka providing tasty and high quality ice cream. Baskin-Robbins has
developed over 1,000 flavors of ice cream, sherbet, sorbets, and ices. Since it started operation,
their mission was to create delicious ice cream concoctions with loads of ingredients and
fanciful names. From the initial concept of 31 flavors - one for every day of the month - Baskin-
Robbins has become the largest chain of ice cream stores in the world. The branches are

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located in Mohakhali, Gulshan Avenue (next to American Fried Chicken), Shantinagar, and
Dhanmondi. Though they claim to offer wide variety of ice cream, very few are actually
available.

CLUB GELATO
One of the Dhaka's classy ice cream parlors, Club Gelato serves authentic Italian ice cream. It
offers a wide range of flavors using the finest ingredients made from fresh milk and processed
under hygienic conditions. Flavors range from milk based ice creams to fresh fruity ones. They
also have an array of scrumptious fine pastry. The interior of the parlor is neat with an elegant
design and stylish environment. However, the price is comparatively higher than any other ice
cream parlors.

RAINBOW
Situated in Dhanmondi and Gulshan, this local parlor provides good ice cream for all ages.
Popular with teenagers in the area, it also has a gifts corner. Rainbow has as many as 22 flavors
to offer and specials such as the Chocoholic – a combination of chocolate ice cream and syrup.
It has been operating for a very long time and hence has gained in popularity with consumers.

SCOOPS ICE CREAM PARLOR

Situated in Uttara at the Bailey complex, Scoops makes its own ice cream in eight flavors from
plain chocolate to mixed fruit. It's one of very few quality ice cream parlors in the area.

IGLOO GELATERIA
This is an outlet opened up by the popular Igloo ice cream company of Bangladesh. They
provide many of their own flavors with catchy names such as the Ecstasy Waffle.

MOVENPICK
Move-n-Pick is a premium ice-cream brand of the Move-n-Pick Foods based in Switzerland. It is
one of the first foreign ice cream chains to be opened in Dhaka. The ice cream comes in from
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their corporate factory in Singapore. Move-n-Pick has three ice cream parlors set up in Dhaka.
The first parlor was set up a few years back in Gulshan 2. The other two parlors are both
located in Dhanmondi.

AMERICAN SOFT ICE CREAM

It provides machine-made soft ice cream with a choice of chocolate, vanilla, or mixed flavors.
They also offer a variety of other drinks besides the ice cream. It is situated in Gulshan and
Dhanmondi. Location-wise, Cream Dream is expected to face stiff competition from American
Soft Ice-Cream, mainly because of the price-range of the ice-cream scoops served in the parlor.
The parlor can offer ice-cream at very low prices because of low overhead costs. However,
since variety is limited and because the seating arrangement is considerably congested, Cream
Dream is likely to be at an advantage over American Soft Ice-Cream.

ANDERSEN’S of Denmark
Andersen is not a separate ice-cream parlor but a part of Chicken King- a fast food shop. It
imports the ice cream from Denmark. The prices are high and provides around twenty-flavors.
There are at present two branches in Dhaka, one in Gulshan and the other in Uttara.

DOLCEVITA
Situated in Banani and Dhanmondi, a premier in ice- parlors in Dhaka, it provides quality ice
cream at a modest price. The Banani branch has a cyber café adjoining it for customers to have
ice cream and browse the web at the same time.

HAPPY JOES
A newly set low-price establishment in the vicinity with limited range of ice-cream scoops.

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Other forces of competition
Threat of new entrants
The amount required for setting up an ice-cream store differs depending on the size of the
firms and its production plan. The parlor business is comparatively small and the start up cost is
usually quite low if the parlor does not manufacture its own ice cream. Legal barrier is low since
only a trade license needs to be acquired. The level of technology is low. As the investment is
quite low, it possesses low exit barrier.

Threat from related products - which may be substituted for ice - cream
Substitute products limit the profit potential of an industry be because they limit the prices that
firms in an industry can charge. In case of the ice-cream business there are infinite numbers of
substitutes- sweetshops, department stores selling chocolates, restaurants offering dessert
items on their menu and hence the seller can have little control over prices.

Competitive strategy
Cream Dream will initially consider only the parlors near its location in Dhanmondi as its
competitors. There are at present over half a dozen ice-cream parlors. Some of them do offer
good quality ice cream at competitive price. Although this presents an obvious challenge in
terms of market share, it also indicates the presence of a large, strong potential.
The newest competitors have to make their successful entry based on an innovative concept or
novelty. Cream Dream will not only focus on the taste and quality of its ice creams but its
uniqueness will also include the innovative sundaes; all being offered at a modest price. Its
menu will comprise almost all the flavors that any ice-cream fan can think of.

The aggressive plans also include providing several sugar-free flavors for the diabetic; bigger
sized scoops, and the wonderful ambience, lounge, availability of magazines and offering
entertainment (video games). All these will provide an advantage to create a good market share
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before the competition can adjust or similar concepts appear. Each of the competitors may
offer one or more of the factors identified as requirements of the customers but Cream Dream
will focus on all the attributes catering to their need. Once the customers of Cream Dream have
tried its ice-cream, their experience will be reinforced by friendly and efficient service in a
homely atmosphere.

6. ORGANIZATION STRUCTURE

6.1 The organization structure

The organization structure refers to the ways in which the organization’s activities are divided,
grouped, and coordinated between managers and employees. The structure is based on the
organizational design and has to be appropriate to the strategy of the organization Cream
Dream is a small business concern at present. It has a very limited line of products and needs to
make efficient use of its resources. Based on its size and product offerings, the organization will
adopt functional organization structure, which is the most basic and logical form of structure.

The structure will provide a slim management structure. There is one Managing Director who is
also being responsible for financial aspect of the business. There are one general manager who
is responsible for will look into administration, marketing side and human resource.

In Cream Dream, the senior-ranking managers are responsible for the operations of the entire
organization. The chain of command is being maintain, that is who reports to whom. This will
ensure better supervision of the employees through proper guidance and control.

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 7. OPERATIONAL PLAN

7.1 Distribution and Storage

Ice-cream is an item which requires careful handling and proper refrigeration system otherwise
the frozen components deteriorates in terms of quality. Hence the process of distribution and
storage of the ice cream is very important. Cream Dream initially plans to bring in its supply of
its products to the parlor every month (presumably within the first week of every month). The
local ice cream and the beverage supplier are the vital parts of the distribution process of
Cream Dream. However, the store will also require importing many of its ingredients to be
imported as well to live up to its promise of offering consumers with a lavish mouth-watering
treat. The ice cream supplies will be sent by the supplier in ice-cream trucks, which have
refrigeration systems installed to keep the ice cream at a specific temperature while delivery. It
will be the responsibility of the management to avoid all sort of conflicts-vertical or horizontal-
between the suppliers and Cream Dream. The distribution system of Cream Dream is very
simple, starting from the manufacturer and ending in the customers. The waiters will serve the
ice creams to the customers in the parlor. The
company plans to provide quality service by using
trained staffs.

The ice-cream will be kept in large refrigeration system

in the parlor. The stock will be used maintained using
the FIFO system (First in First Out). The stock will be
kept for a maximum of three months. The time and
amount of stock that will be ordered will be forecasted based on the sales of the previous
months.

7.2 Resource requirement

The business will start its operation in Dhanmondi. The area available for the parlor is 1600
sq.ft. The monthly rent will be Tk 40000 and 500000 has to be paid in advance to the owner of
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the premise. This would be a major drain on the financial resources of the business. It would
also raise fixed costs thus subjecting the business to a high level of risk. It will take
approximately one and a half month to decorate the place for the parlor.

Ice-cream dip freezers

Dip freezers display 4, 8, 12 or 16 flavors in 3-gallon cans.
Parlors usually use a combination of dippers depending on
how many flavors they want to display. As far as display and
storage goes, the 8-can dipper displays 8 flavors and stores 4
underneath for a total capacity of 12 cans. The 12-can stores 8
for a total of 20, and the16-can stores 12 for a total of 28.
There are a few variables that need to be taken into account
when determining the right combination of dip freezers for a
parlor. The first is the space limitation as well as the planned layout. Next is finding out the
available flavor variety offered by the company.

In most cases, a parlor's variety of flavors should be somewhere in the 24-48 range. A section of
the parlor will be equipped to set up the game zone. Another section will be set aside for the
kids’ corner. The rooms will have colorful walls and be brightly illuminated to attract the
customers. The glass counter will display the different colored and multi-flavor ice-cream.
There will be seating arrangement for 25 people. Trendy music will be played at the
background.

A glass shelf displaying the beautiful crockery (bowls and glasses) will be kept behind the
counter. There will be a separate section for storage that will be separated by partition.

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7.3 Logistics
The logistic refers to the factors such as equipments, fixtures etc that are needed for Cream
Dream to operate. Lists of such items are given below.
Furniture and Fixture
Tables 8
Chairs 30
Display counters 1
Air conditions 2
Sofa sets 2
Magazines racks 2
Toys for children 5

Equipment and Machinery

Ice cream dip freezers 2
Coffeemaker 1
Cash Register 1
Cone Manufacturing machines 2
Fountain Machine 2
Refrigerator for drinks 1
Soft ice cream maker 1
Video game machines 3

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7.4 Utilities
The utilities that will be needed:
 Electricity
 Water
 Telephone
 Security maintenance

7.5 Production
Cream Dream will not prepare its own ice-cream. It will obtain its supplies from a local
company. It will only prepare the waffle cones using the cone maker. Cream Dream will
basically present scoops and sundaes that may be prepared in front of the customer or the
customer may sit down at one of the 25 seats in the room and get full service from a waiter
after placing the order.

Cream Dream will provide coffee, milk shakes and soft drinks.
The soft drinks will also be obtained from the local beverage
companies. Strict standards of sanitation, quality production,
and presentation will be maintained.

7.6 The menu

The Cream Dream will offer a collection of different flavors of ice-cream along with certain
special flavors that are not currently available in other parlors. It will also offer the fructose-
based ice-cream for the diabetic and health conscious customers. The goal is to create the
image of enjoyable fun flavors.

The sundaes will be made up of different combination of flavors. Some of the sundaes can be
served according to the customers’ preference with flavors, number of scoops and toppings of

37
their choice. The toppings will include chocolate sauce, strawberry sauce, wafer rolls, nuts, and
fruits.
The different types of sundaes will be:
 Single Scoop Sundae
 Double Scoop Sundae
 Waffle Cone Sundae
 Chocolate Cone sundae

7.7 Suppliers
Cream Dream would require suppliers for the following products:
 Beverages: Coca Cola, Sprite, Fanta
 Water: Mum (Partex Beverages)
 Ice-cream (Frosty Ice cream Factory, Igloo Ice cream Factory, Dhaka, Bangladesh)

The ice-cream and the beverages will be obtained from local companies. The cones and coffee
will be prepared on the premises. The equipment used for preparing these items will have high
standards of sanitary efficiency and will be cleaned regularly. The food will be bought on a two-
month basis and stored in refrigerators in the storage section. Supplies for toppings, cone
ingredients, coffee, and beverages will be bought on a monthly basis. As the ice-cream is not
manufactured by the parlor, the operations require very low level of technology.

7.8 Facilities
The premise at Dhanmondi will be the only point of sale at present. The license and other
papers will be all kept in order. Equipment and room furnishings will be purchased and
installed. Customers prefer freshly baked cones and the equipments make it easy to serve giant
waffle cones.

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7.9 Hours of Operation
The parlor will be kept open 7 days a week. The service will begin from 9: 30 a.m. and end at
08:00 p.m. The parlor will have to be kept closed on days of strikes and May Day. No
consideration on festival days will be given and the parlor will operate throughout the year as
more sales take place on such events.

7.10 Employee Training

Employees will be trained not only in their specific operational duties but also the philosophy
and applications of the concept of the venture. The staffs involved with preparing the scoop will
be given knowledge about the different ice cream flavors and the quantity of ice cream served
in each scoop or sundae.

7.11 Bill-collection process

The operational activities are very simple in the ice cream parlor. The customer places the order
that is prepared according to the recipe. Each sundae has a fixed combination of flavors and will
be prepared according to the recipe. The waiter then serves the item. The bill is collected
before the patron leaves the store. The supervisor would ensure that the other staffs (waiters,
guard, and server) are carrying out their work efficiently to achieve the goals of the
organization.

7.12 Controls
Cream Dream places a big emphasis into the quality and integrity of its products. They will
constantly be tested for its own high standards of freshness and purity. Costs and inventory
control will be handled by the computer system and checked daily by management.

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 8. MARKETING PLAN

A marketing plan is probably the most important but least thought about aspect of a business.
It is the part of a company’s business plan that outlines the marketing strategy for the company
and its products.

8.1 MARKET ANALYSIS - Long term prospects and trends

The population and local businesses in Dhanmondi are increasing at a rapid rate. The location
has been identified as a prime center for business activity especially in case of ventures related
to food industry. Several high quality restaurants and almost all the top ice-cream parlors are
located near the suggested location for Cream Dream.

Eating out has been chosen as a form of entertainment by the city dwellers as there is a lack of
proper source of entertainment. People visit fast-food shops and ice-cream parlors more than
they did few years back. They celebrate parties and this is now a widespread accepted way of
enjoyment. Ice cream parlors are also chosen nowadays as an informal meeting place.

Market analysis is favorable toward the ice cream business within Dhaka. Ice cream is a popular
indulgence, and people, mostly young people are willing to spend money for such a treat. Since
Dhaka is catching up with Western trends it is reasonable to project that ice-cream business will
be prospering in the coming decade and people will demand more variety and premium quality.
It is also important to bear in mind that people are also becoming increasingly health conscious
and hence quality and health should be the main criteria for positioning Cream Dream.
Marketing “healthy” and “premium” ice cream will provide more options for the customers.

8.2 The Market

Identification of the market segments is important for any business enterprise so that it can
decide on its target market and create a more fine-tuned offering. This also helps to have a
40
clearer picture of its competitors. The customer base will come from two major segments: Local
population - The target market will include mainly the residents of Dhanmondi, Mohammadpur,
Jhigatola, and shonkor. Furthermore, educational Institutes– there is more than 25 schools and
universities in the surrounding areas.

The food concept and product image of Cream Dream will attract 2 different customer profiles:
More and more young people have developed interest in eating at places such as fast-food
shops and ice-cream parlors.

Curious individuals who pass by and are attracted by the wonderful smells coming from inside
are also potential customers. They will flow in and out all day, and are likely to peruse the
store’s magazine rack for hours. This customer base is most lucrative, and is most likely to buy
an ice cream before or after their short day hikes. These individuals have not visited the store
before and are likely to make impulse purchases during their first visit. Most of these inquisitive
people who are curious and open-minded about new things; through marketing, publicity, and
word-of-mouth, people will seek out a new experience and learn that ice creams can be
different, healthy, tasty, fun, convenient, and inexpensive.

Cream Dream will target all segments of the metropolitan population: though its main focus will
be on children and teenagers. The purchase of hand-dipped ice cream and related products is
basically an impulse-type purchase by a consumer relating to one of the following stimuli:
 Passing by the Shop on the way to another destination,
 Visual contact with the Shop’s signs,
 Observing someone else consuming one of the Shop’s products,
 The final course (dessert) after a meal has been consumed elsewhere (considering there
are many fast-food restaurants in the vicinity)

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8.3 Target marketing strategy
The business will especially attract customers wanting a variety of new, creative and original
ice-cream flavors that cannot be found in any normal supermarkets and ice-cream parlors.
Another reason why the owners of Cream Dream have selected this target market is that they
will be able to access a much wider market by extending the product line as well depth of their
offerings and generally become more profitable through the greater sales. Thus, the success
rate of the business will be enhanced.

However, most specialty target market will be considered the youth of this generation including
teenagers and young adults. The customer group also includes young couples with several kids.
This is because the youth are early adopters of exotic food products, and they like to
experiment and tend to follow trends. Also, an alternative reason why the main target market
will be youths is that ice cream is popular within this age group, as it is fun and most
importantly delicious.

However, the secondary target market will be aimed at the older generation of today such as
parents, adults and health-conscious people, either to buy the ice cream for themselves or for
their children. This segment will also be attracted, as there will be items to cater their needs
such as coffee. The health conscious people will also be attracted as certain flavors will be
glucose-free to meet the demand of people suffering from diabetes and obesity.

8.4 Demand analysis

There are several factors that influence the demand of a product of an industry. The factors
linked to the ice cream industry are:

Seasonality of demand
Seasonality refers to the distribution of business activity throughout the year. Seasonal
industries have a disproportionate amount of activity in one part of the year and

42
correspondingly less in the others. Many people have this notion that ice cream parlors face the
problem of seasonal demand and are able to do only 10% of their year's business in the winter
months.

However, according to Mr. Gomes, the manager of Club Gelato, ice creams may face a seasonal
demand in shops or supermarkets but not when provided in an ice cream parlor. He explains
that during winter people may avoid buying ice cream boxes available in the shops, but the
customers of ice cream parlor come not only for the ice cream but also to spend their time.
Lack of entertainment place in Dhaka causes the customers to come to the parlor and have
good time. However, the sale of ice cream may be a bit less during the winter than the other
seasons. Nevertheless, as the country experiences 9-months of tropical summer heat, the
demand for ice-cream in general remains fairly consistent throughout the rest of the year.

Competition
Even though the business will specialize in normal ice cream, it will also offer the option of milk
shakes and other types of ice creams such as sorbets, soft serve, and sundaes. This way, the
business will be able to cater for a wider range of customers, satisfy their individual tastes, and
fulfill their satisfaction of ice cream. Many ice cream parlors only offer ice cream and this does
not comply with everyone’s wishes.

Cream Dream will be the new, modern, ice cream store that is situated conveniently in
Dhanmondi where it can be easily accessed. The business will have a neat and creative exterior
shop front that attracts the attention of passers by, particularly children due to the repetitive
color schemes and animated characters that the business will employ. The color scheme will
consist of pastel colors like pink, purple, and white. In addition, the business will provide a
happy and comfortable atmosphere that is different from other businesses within the ice cream
industry. There will be background music for customers to enjoy whilst being served and the

43
waiting line would not be long, as the business will employ sufficient staff to handle the
customers. This will especially be beneficial for families with children. The business will also
incorporate a self-service component where it will enable children to create their own toppings.
This offer can be used with any product purchased. It will appeal to children as it is fun and they
will be able to "make" their own ice cream.

Another factor feature that will distinguish Cream Dream from other ice creameries is the range
of sizes. The ice cream will be served in a variety of sizes ranging from sundae cups, both large
and small to cater for a wider range of customers, as well as the choice of either a waffle or
wafer cone.

Thus, the business’ pricing strategy, range of types of ice cream, exterior and interior store
presentation and large range of sizes will mainly be the principles that will distinguish Cream
Dream from other competitors.

There are currently about 30 ice cream parlors operating in Dhaka some having branches in two
or more locations. The most popular parlors such as Club Gelato, MovenPick, etc are all foreign
franchises. The parlors have been around for some years and are more experienced than new
ventures. Hence, Cream Dream is expected to face tough competition from the other ice cream
parlors. Also customers of ice-cream parlors tend to be quite loyal and do not change their
preferences very easily, which may create a problem for Cream Dream Parlor. There are three
major ways in which advantage can be created over the competitors: product identity and
quality, high employee motivation and good sales attitude and innovative options.

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 8.5 The Marketing Mix

8.5.1 The product

Ice Cream and Related Products
Cream Dream Parlor will sell ice cream, yogurt, and sorbet products: vanilla, chocolate, Brazilian
Coffee Crunch, Strawberry Surprise, and other ice cream and yogurt flavors; ice cream and
yogurt sandwiches; blueberry and other sorbets; and a variety of Italian-style ices including
lemon and lime. Lemon ice will be a featured product with its distinctive, sharp lemon flavor.
The parlor and café features delicious treats and coffee prepared fresh daily from the finest
ingredients available. From ice cream and frozen custard to milk shakes and smoothies to
coffee and cakes, all will be offered under one roof. The parlor even features low-calorie ice
cream, so even dieters can enjoy frozen treats.

The main items for sale will be hand dipped ice cream and yogurt cups/cones; sundaes finished
with a variety of toppings such as hot fudge, caramel, butterscotch or fruit, banana splits shakes
malts, and ice cream sodas and floats. Included among the different imported tropical and
Mexican flavored syrups that will be sold are: Wild Watermelon, Pine Colada, Pink Lemonade,
Guava Grape, Cherry Jubilee, Root Beer, Kiwi, Strawberry, Blue Bubble Gum, Orange Mango,
Raspberry Red, Luscious Lime, Bodacious Banana, Tamarind, Melon, and Papaya. There will be
other flavors available as well such as Spearmint, Black Cherry, Cinnamon, Blueberry, Peach,
Red Apple, Tutti Frutti, Coconut, Cola, Green Apple, Tangerine, and Vanilla. Also, more
commonly found low-end products to be sold will include ice cream in vanilla and chocolate
flavors.

The customers will be given the option to make their own ice-cream and this will particularly
appeal to the children. Once they have selected their desired flavor, the ice cream will then be
scooped onto a frozen marble slab, where their choice of fruits, nuts, and candies will be
blended in, until the whole mixture is pile high on the fresh waffle cone of their choosing.

45
The shop also doing there business by selling ice cream cakes, gourmet traditional cakes and
birthday cakes. These cakes will be displayed for immediate sale at all times during business
hours and can also be produced in quantity on a special order basis for caterers and parties. The
Shop will have two 3-foot wide, 4-shelf display cases for cakes. One 3-foot display will be for
frozen ice cream cakes, and the other will be refrigerated for display of traditional gourmet
cakes and gourmet birthday cakes.

Flavors
Cream Dream aims to provide a wide range of ice cream flavors. The ice cream flavors will
include the typical ice-cream flavors such as chocolate and strawberry and also unique flavors
that cannot be found in normal supermarkets and ice-cream parlors.

Many companies have introduced and are marketing ice cream that has a lower carbohydrate
content to meet the demand for the newest diet craze. Customers are also now able to find
reduced-fat, fat-free, and no sugar added varieties at many local ice cream parlors.

The newest trend in the ice cream industry is the mix-in or “create your own” craze. Consumers
are looking at indulging themselves when they go out for ice cream. They are looking for an
environment that caters specifically to them, while making them feel special at the same time.
Instead of going to the grocery store, customers customize their ice cream experience selecting
specific types of ice cream in an ice cream shop, order a specific flavor, and then, add things to
it. Candy bars, cookies, brownies, and fruit are the typical add-ins that is seen in most stores.
The parlors then mix the creation together and spice it up with toppings. Ice cream shops are
also beginning to make more ice cream on site rather than buying it from a supplier. Freshly
made ice cream is a huge draw to customers.

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Customers can taste the difference in old vs. new ice cream and also in the different ingredients
that are used. They are more into eating a higher quality product that is fresh and made
specifically with them in mind.

Beverages and Other Products

Coffee, tea, and related beverages will be purchased from a local wholesale food distributor.
Other products will include soft drinks (Sprite, Coke, Mountain Dew, Fanta and Diet-Coke), and
cappuccino.

Special ice cream suitable for diabetic and obese people for diabetics, prepared with fructose
(fruit sugar which is easily digested) rather than regular sugar, will also available. Other items
such as coffee, sorbets, and sundaes will also be offered. The ice creams will be the products
that will distinguish Cream Dream from other ice-cream parlors and suppliers.

Cream Dream will also have a games corner. Here two games arcade machine will be kept with
the latest and most popular games. This will attract the customers and will help to bring in a
greater pool of customers.

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List of possible flavors:

No. Name Description Presentation

1 Almond joy Chocolate ice cream with

almonds.

2 Banana Fresh banana ice cream.

3 Banana Chocolate chip Banana ice cream with

chocolate chips.

4 Blueberry Blueberry ice cream.

5 Blueberry White chip Blueberry ice cream with

white chocolate chips.

6 Boring White Chip Vanilla ice cream with dark

chocolate chips.

7 Butter Almond Buttery ice c ream

With chopped roasted
almonds.

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8 Butterscotch Vanilla Vanilla ice cream with swirls
of butterscotch.

9 Caramocha Coffee-chocolate ice cream

with caramel swirl.

10 Cherry Chocolate Chip Black Bordeaux cherries and

chocolate chips

11 Chip Frenzy Vanilla ice cream with white,

caramel

12 Chocolate Almond Chip Chocolate ice c ream with

almonds and chocolate chips

13 Chocolate covered pretzel Vanilla ice cream with tons of

choc covered pretzels.

14 Chocolate covered Chocolate and strawberry ice

strawberry cream.

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15 Strawberry Strawberry ice cream

16 Tutti Frutti Mixed fruits

Positioning
This is fundamentally to appeal the customer’s so that they can see all the different types and
flavors. This generally means that a popular ice cream such as Butter Scotch will be positioned
next to a not-so-popular ice cream such as Tutti-Frutti, whereby the customer will take it into
account.

8.5.2 Price
The majority of the business’ sales will come from ice cream. Prices will be comparable for
standardized traditional flavors like vanilla, chocolate and higher prices will be charged for the
multiple flavored and delicious varieties. Once the initial outlay is recovered, the store will
lower prices for most of its offerings. High prices will be required to be charged for offering the
imported flavors and items that require a significant proportion of imported ingredients.
However, customer feedback and ratings is being analyzed, measured so that the popular items
can be chosen. Managers make decisions as to whether any item will be kept for the next 3
months will be based on customer feedback. This will not only ensure that unprofitable items
are not included in the product line and at the same time it will ensure that the offerings are
compatible with the tastes and preferences of the customers.

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Product costs and mark ups (i.e. sales price)
Product cost formula
Variable costs per unit + 90% of variable costs per unit = retail price

The prices of all ice-cream products that Cream Dream will offer are determined by using the
formula stated above. The reasons for this formula are that the business aim is to fulfill the
customers’ satisfaction and at the same time ensure that the business can maintain profits. In
order to completely achieve this, the parlor will be offering ice-cream at reasonable and
affordable prices and that will not only satisfy the customer but also the business requirements
(i.e. profits). Although, 90% may seem a lot, the profitable margins are minimal. It can be noted
this is mainly to cover the excessive fixed cots of the company. The Cream Dream business may
however find its growth to be slower in the initial years mainly due to its high prices. Thus, take
for example, a scoop of a delicious ice-cream with a waffle cone. Its cost price is Tk 13.

Variable costs per unit + 90% of variable costs per unit = retail price
Tk 13+ 90% * 13 = Tk 24.7

Thus, the pricing strategy is reasonable, affordable and fulfils the customers’ satisfaction of low
costs, and delicious high quality ice-cream. The business will generally increase sales through
the use of promotional plans such as free giveaways, coupons, requesting a free taste test and
so forth.

Representative prices are as follows: Tk 50 for a single scoop of ice cream, Tk 90 for a double
scoop of ice cream (both single and double scoops include a cone or cup), Tk 115 for a double
scoop in a chocolate waffle cone. While these initial prices are fairly compatible with the pricing
of other ice cream stores and parlors. Volume costs include Tk 20 per scoop of ice cream, Tk 5
per 5 ½ oz. plastic cups, Tk 2 per plastic spoon, Tk 5 per sugar cone, Tk 15 per chocolate waffle
cone.

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 8.5.3 Physical facility
The store will be making use of colorful bags, boxes, and
containers to attract curious passer-bys. Moreover, the parlor will
use additional scents to make their store extremely fragrant. The
windows will be decorated to provide a welcoming atmosphere
and entice passers-by to stop in.

The managers of Cream Dream plans to promote the business through the use of:

Music: The use of music within the store will attract people’s attention and retain it, especially
if it is their favorite type of music.

Seating: Seating within the store will provide accompanying customers with comfort whilst they
wait. Also, it will be beneficial for parents whilst they supervise their children whilst they
"make" their ice cream.

Bonuses for the Customers: This essentially means that by distributing free promotional
coupons and samples, the store can increase the popularity of the business. It will attract
customers, as the coupons will be distributed near the location of the business, where they will
be persuaded to visit the store to receive their free promotional samples.

To increase the popularity of the business, Cream Dream will provide game zone. It will attract
customers, and the young people.

8.5.4 Promotion
Promotion is an attempt to influence the consumers. Cream Dream will design the promotional
mix based on the target market, the product, the stage of its life cycle and budget for
promotion. Its promotional mix will mainly include advertising and sales promotion.

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Advertising
Cream Dream will mainly use the print media (newspapers, magazines, and leaflets) for its
advertisement. The other expensive forms of advertisement such as television or radio
broadcast will be avoided. The advantage of using this media is that will enable the promotion
of the business to have a widespread circulation either within the area or city; depending on
which newspaper it is advertised in. As the business is located in Dhanmondi, and the
surrounding shops are very popular, people will be able to recognize the location of the
business easily. Newspapers used will be Daily Prothom Alo, Daily Star, and the Bangladesh
Observer etc.

Magazines are largely read by the public for enjoyment so the advertisement will appeal to
them. Newspaper such as The Daily Star and The Independent issue magazines that are popular
in target market and also contain special food and entertainment section is which the ads will
be placed.

Leaflets will be distributed to about 500 households (number based on cost calculation) along
with newspaper and in chosen regions based on the target market. It will accompany those
newspapers, such as the Daily Ittefaq, which have not been chosen for the ads. Rollout posters
will be hung on the front of the shops to attract more customers.

However, Cream Dream will only use this advertisement technique in its initial stages, two
month before starting its operation and two months after that, so that it can inform and
educate its potential customers. Later it will depend on ‘word of mouth’ of its existing
customers.

Cream Dream also plans to participate in fairs and exhibitions. Promoting the parlor through
the use of fairs and various events such as Food Festivals that is held annually in an effective
way in showing the customers what Cream Dream corner offers. Placing the business in such
competitions at these venues will demonstrate and display the amount of confidence the
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promoters have in their product, and also appealing to customers to buy the product. It will
show that the product is trustworthy and worth their value. The fairs will obviously have many
children and youth roaming the site that will be a great advantage to the business as the
targeted audience are from this age group. Food festivals will undoubtedly attract lovers of
food; thus, the parlor being promoted here will be of a great advantage.

Cream Dream Parlor will also be promoted with a variety of marketing methods: A grand
opening will be held with free samples of food products and drawings for distinctive hats, T-
shirts, and other clothing bearing the store’s logo.

According to a research conducted in India, most consumers talk about their favorite vanilla or
strawberry flavor and not their favorite brand of ice-cream. Hence the advertising campaign will
mostly stress on flavor rather than the brand. With the use of animation, the campaign has
assigned a character to each flavor, which speaks for them as they pose for a photograph.
These characters also feature in the kids’ corner and on special dishes and cups served to the
kids. The company also plans to give away free tattoos and labels with images of the various
ice-cream characters on them.

One way to draw customers into the shop is to offer “Buy One, Get One Free” coupons from
the local newspapers, direct mailings, or the Internet. Consumers are drawn to places where
things are advertised as being “Free”. Coupons are an easy way to determine just how affective
the advertising message is in the community. Then, once the consumer has entered the ice
cream shop, it may be possible to sell other products to them as well. Also, with coupons,
consumers are more likely to bring their family or friends along with them.

Another program that may be introduced for the ice cream parlor is the use of loyalty
programs. This program can be extremely effective in the ice cream market. It encourages
customers to come back to the store each time they have a desire for ice cream because they

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are trying to reach their free reward at the end. It is suggested that the number of visits
required for getting the reward.

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 9. FINANCIAL PLAN

9.1 Sales forecasting

As ice-cream is a seasonal dessert, with sales being dependent on the weather, the sales figures
vary throughout the year. Typically, sales of ice-cream would peak during the summer season
as this is when ice-cream is most popular and favorable. With 9-months of hot-weather and
with Dhaka city being relatively warmer, the slack period of 3-months in the winter need not be
a cause for concern. Hence sales will be low throughout the winter and in some occasion the
business is likely to incur a loss of profits.

Cream Dream aims to keep the customers satisfied. If a customer is unable to get the flavor of
ice cream he/she was looking for, then it is very detrimental to the sales and its image. Keeping
a high stock level may seem to be a better option but Cream Dream also has to be cost
efficient. Ice cream has to be stored in freezers and keeping large inventory will involve huge
costs as more freezers will be required as well as higher electricity costs will be incurred.

To be able to maintain the exact amount of inventory level, Cream Dream has to predict the
level of future demand and hence forecasting demand will be a very essential element in the
operations structure.

The demand for each flavor is different; thus forecasts have to be made separately for each
flavor to maintain the varying level of inventory for each flavor. Initially Cream Dream will
forecast its inventory based on its study of sales in competing parlors. To further enhance the
forecasting technique, the factors that have impact on the demand of ice cream need to be
determined and these have to be incorporated in the calculations.

After the operation has continued for one-year, Cream Dream will systematically combine its
historical sales data to present its forecasts. This forecasting method can either be the weighted
moving average or exponential smoothing. The ‘weighted moving average’ is an effective

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technique as it places greater weights on the most recent data that compensates for trend or
seasonality.

Demand for ice cream is unstable and is easily affected by several factors. During an economic
slump demand of ice cream will be one of the first to fall. During economic instability
consumers are reluctant to spend their money on luxury products such as super premium ice
creams. Cream Dream needs an efficient forecasting technique that will help in dealing with
high demand as well incurring a low inventory management cost.

9.2 Ongoing costs

The outgoing costs for the business, Cream Dream includes rent payments, wages, advertising,
insurance, repayments of installment for bank loan, bank charges, accountant fees, telephone
bills, electricity bills and wages.

Preliminary Expenses
Equipment: Basic equipment cost is estimated to be Tk 194000. This expense includes: dipping
cabinets, refrigerators, tempering freezer, display freezers, holding freezer, three-compartment
sink, ice machine, stove, and equipment installation.

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List of Machines and Equipment
Details Units Total Cost

Refrigerator for ice-creams 2 80000

Coffee Maker 1 2000
Cash register 1 10000
Cone manufacturing machines 2 4500
Refrigerator for beverages 1 18000
Soft ice-cream maker 1 6000
Crockery 1 12000
Video-game machines 3 90000
Tempering freezer 1 22000
Total 244500

Real Estate
The project will be accommodated in Dhanmondi. The monthly rent will be 35000 Tk and the
annual rent is Tk 420000. There will be an advance payment of Tk 1000000.

Fixtures
Fixture costs will total about Tk 150000 based on an estimate from OTOBI Fixtures Supply, Inc.
These costs will include purchasing tables, chairs, and removable self.

Security Deposit
Security and other deposits will include Tk 1000000 for taking possession of space.

Signs
Cream Dream Ice Cream will have extensive signage on the building-front. Signage and
installation will cost Tk 20000.

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Decorations and Improvements
This estimate was provided by a local contractor and includes floor and wall coverings, window
treatments, painting and decorating, window decorations, and miscellaneous minor
improvements.

Details Units Total Cost

Electrification 40000
False ceiling 30000
Lighting 40000
Floor 35000
Toilet 2 50000
Generator 1 45000
Paint 10000
Total 250000

Furniture
Details Unit Cost Total Cost

Tables 8 10000 80000

Chairs 30 1000 30000
Display counters 1 40000 40000
Glass Shelf 2 15000 30000
Cabinet 1 25000 25000
Air condition 2 45000 90000
Sofa set 2 35000 70000
Magazine racks 2 3000 6000
Toys for children 5 4000 20000
Total 361000

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Salary Expenses of the Year
Post No. of Employed Monthly Salary Annual Salary

Ice-cream arranger 2 4000 96000

Waiter 4 8000 384000
Accountant 1 10000 120000
Sweeper 1 3000 36000
Guard 1 5000 60000
Supervisor 1 15000 180000
(Bonuses) 50000
Total 926000

Utilities Expense
Particulars Cost (monthly) Annual Cost

Electricity bill 20000 240000

Water bill 5000 60000
Telephone bill 4000 48000
Total 348000

Promotional Expense
Print Media Monthly Cost

Newspaper Add 100000

Magazine Add 70000
Leaflets 10000
Total 180000

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Present Expense
License fee 3000
Decoration 250000
Unallocated expense 20000
Furniture 361000
Equipment 244500
Advance 1000000
Promotional Expense 180000
Total 2058500

9.3 Important Assumptions

Monthly sales are the largest indicator for this business. There are some seasonal variations
with the months of March through September being the highest sales months.

10. CONCLUSION
Cream Dream parlor will be successful. This business plan has documented that the
establishment of Cream Dream parlor is feasible. All of the critical factors such as industry
trends, marketing analysis, competitive analysis, management expertise, and financial analysis
support this conclusion. It has been demonstrated that both product and business has a unique
and appealing streak, which is capable of attracting customers. The marketing strategies,
staffing needs and other aspects of business being shown in the above business plan can show
that the future Cream Dream will undoubtedly be a successful small business. Cream Dream is
hoping to expand its business when it is financially capable. That is, expand the business to
other locations within the state and hopefully nationally. This is going to be achieved through
franchises.

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 11. Reference
 Natural Ice Cream The ice cream parlour which began as a small by Rohini Anupriya,
Yogesh Deora , Shubhada, Ankush Jadhav and Amit Vohra

 Project paper on Davis's Ice Cream

 http://www.cothivalebooks.com

 www.squidoo.com/icecramtruckbusinessplan

 www.wikipedia.com

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