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THE BEGINNING OF NEW ERA
Indian contribution to the modern world is absolutely great. One of the contribution in the desert category the kulfi KULFI Kulfi is a popular South Asian, ice cream made with boiled milk typically from buffalo. Kulfi differs from western ice cream in that it is richer in taste and creamier in texture.
It is made by boiling milk until it is reduced to half .then sugar is added and the mixture for another 10 minutes. Then flavouring with dry fruit etc. then kulfi is put into moulds and frozen. As well kulfi is also served with falooda. Now , ice age ² the healthy ice cream parlor bring the new generation of ice cream.
Various factor contribute to the quality segment, such as price ,brand positioning ,product packaging , quality of ingredients. There are various variants of ice cream: Super premium it has high fat and it is high quality ingredients Premium ice cream it has low overrun and higher fat content then regular ice cream. Regular ice cream Sell for a lower price than a premium ice cream price
Company profile Name: ice age-the healthy ice cream parlor Date of launch:6/12/2010 Investment: Total capital investment required - 7crore Borrowed capital(loan from sbi bank) - 2crore Total partner investment - 5crore
BUSINESS STRATEGY Our business strategy will include the determination of the most beneficial product market in term of establishing itself in this new product segment.
The model used for preparing the marketing strategy by ICE AGE Ltd. , in the Indian market 1.Product range 2.Internal analysis 3.External analysis 4.Competitors analysis 5.Environment analysis 6.Marketing strategy 7.Future plans 8.conclusion
The first growth vector will involves gaining penetration with the existing product-market Ice Age Ltd. will attempt to attract customers from competitors through its strategic positioning and will establish strong brand equity. The second growth vector will involves product expansion while staying in the current market. Ice Age Ltd. will then offer a new product. It will be aimed not only for the existing market but also for the price conscious segment. The third growth vector will apply the same products to the new markets. The fourth growth vector will be to diversify into new product markets. We shall concentrate on the second growth vector and study the strategy with respect to the Ice Cream market.
During internal analysis the promoter should take care of the following things.
Raw material requirement Power supply Labor requirement Working force Capital Working capital Internal rules and regulations Proper management Proper material handling
Ice Age Ltd.. has decided to enter this market with the basic idea of tapping the upper middle class which had established itself as a huge tapped market in the perception of a lot of national and multinational players who were then trying forages into the Indian market.
Consumer mindset-The consumers always have a different loyalty status for different brands. Sometimes they buy some brand due to the price or sometimes due to the features. Studying the consumer·s mindset is of vital importance as perception of individuals at the buying stage of various brands is unpredictable and ever changing. Market share-market share helps us know the current market leader and market follower so that our company can develop an efficient market strategy.
swott analysis-the swott analysis help us know the company having better strength ,more opportunity on the other hand company having more of weakness and threats
35 30 25 20 15 10 5 0 1st Qtr
Kwality walls kay cee nirula gyani
The above diagram represents the sales of the famous Ice Cream parlors in Delhi and their sales before Ice Age entered the market
1. High initial cost - high initial cost includes cost of product development ,market research ,test marketing etc. to create awareness and develop new brand and its expenditure such as advertisement, free sample and product promotions. launch cost are as high as 50-100% of revenue in first year. 2. Market research ²it includes problem definitions , research design, collection of data, field work ,data analysis, report prepare, follow up recommendation.
3. Brand equity - Brand equity refers to the intangible asset in the form of brand names. The consumer's loyalty for a particular brand is due to the perception that the product has distinctively superior and consistent quality, satisfies his/ her specific needs and provides better value for money than other competing brands.
The major problems faced while marketing in the Indian market: 1. Underdeveloped People and Underdeveloped Markets: The number of people below poverty line has not decreased in any appreciable manner. Thus underdeveloped people and consequently underdeveloped market by and large characterize the Indian markets. 2. Many Languages and Dialects: The number of languages and dialects vary widely from state to state, region to region and probably from district to district. The messages have to be delivered in the local languages and dialects. Even though the numbers of recognized languages are only 16, the dialects are estimated to be around 850. 3. Different way of thinking: There is a vast difference in the lifestyles of the people. The kind of choices of brands that an urban customer enjoys is different from the choices available to the rural customer. The rural customer usually has 2 or 3 brands to choose from whereas the urban one has multiple choices. The difference is also in the way of thinking. The rural customer has a fairly simple thinking as compared to the urban counterpart.
Strengths: Less fixed cost required Healthy No side effects Less consumption of sugar Less consumption of fats Reduces chances of illness like diabetes Useful for health conscious people Tasty with health variety
Weaknesses: Slightly high in price due to use of special products Opportunities: Introduction of new flavors Easy in achieving break even point Prices can be reduced in short run Threats: competition from existing Ice Cream parlors offering sugar free ice creams Trend: taste and preference of the consumer good quality packaging so that it attract consumer
Product Ice Age Ltd« introduces Ice Age Ice Creams ² The Healthy Ice Cream Parlor which brings to you a new generation of ice creams. There are many choices in today·s ice cream case to suit a wide variety of consumers taste. There is plenty of information on food labels, but what does it really mean? Where Ice Age does stands?? Ice cream is a frozen food made from a mixture of dairy products, containing at least 10% milk fat.
Reduced fat" ice cream contains at least 25% less total fat than the competitor referenced product. "Light" ice cream contains at least 50% less total fat or 33% fewer calories than the competitor product . "Low fat" ice cream contains a maximum of 3 grams of total fat per serving "Nonfat" ice cream contains less than 0.5 grams of total fat per serving.
Introduction of new product in the market Completely fat free ice cream 98.99% sugar free ice cream Eco-friendly Healthy Zero side effects Ice creams for all age groups Total health conscious product Blend to suite the taste buds with health in mind More then thirty Variety of flavors for the first time in sugar free and fat free concept
Top 15 Flavors
1. Vanilla, 2. Chocolate, 3. Butter pecan, 4. Strawberry 5. Punjabi delight 6. Chocolate chip, 7. French vanilla, 8. Cookies and cream, 9. Vanilla fudge ripple, 10. Praline pecan, 11. Cherry, 12. Chocolate almond, 13. Coffee, 14. Rocky road, 15. Chocolate marshmallow,
The pricing strategy adopted by Ice Age Ltd. is PENETRATION PRICING because it is a total new brand, which is entering a market, which is already facing immense competition. And breaking this competition and attracting new requires quality product at low price. Hence our product will be priced low which will be economical and will encourage new buyers. Hence we have adopted the penetration pricing method for capturing market share and establishing ourselves in the market.
After considering all the factors i.e. cost of production, transportation cost, store charges, etc« and after analyzing this data the finance manger coated the price list according to the material requirement of the product and the making charges with considering all other of the store also. According to our finance manager the cost of per scoop of ice cream will Rs. 35 which would earn the company a profit of 20% on cost.
After deep research and market survey it was found out that the company will meet its break even point of production within 1 year of its expected sales of 50000 units per month.
Ice Age Ltd« will be establishing its marketing throughout Delhi. Ice Age ice creams being an entirely new product in the market will initially operate only in Delhi till further expansion. The segmentation of Ice Age ice creams is done on the basics of ´Demographic segmentationµ and ´psychographic segmentationµ. Keeping this segmentation in mind the management has taken steps to open its shops at the following places in Delhi:
Rajori Garden New Delhi railway station Select City, Saket Connaught place South campus and north campus Kashmiri Gate metro station The main production of all the products will be done at the main unit based at ´Azad marketµ and then will be transported to all its shops at different places all over Delhi.
We will give all the retailers/direct-dealers a good profit margin than our competitors are providing them but not at the initial stage because we are focusing to attract our target market using diversified means of promotions and advanced technology to our customers at reasonable price. We will also give them incentives for vouching for our product at a later stage as we settle down in the market. Hence we have decided not to go for push promotion strategy at present but instead we have decided to go for pull promotion strategy.
Television advertisements: Advertisements to promote and market our product will be shown on leading television channels. Major music and family channels will promote Ice Age Ice Creams as they will reach out to the youth as well as all age groups. Star, Zee, Sony , Doordarshan, M Tv etc will be our main promoters. Radio: Radiois the medium with the widest coverage. Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural areas, whether or not listeners actually own a set. Many people listen to other people's radios or hear them in public places. So radio announcements will be made and advertisements will be announced on the radio about the product features and price, qualities, etc.
Print Ads: Daily advertisements in leading newspapers and magazines will be used to promote the product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various other locations. Workshops and seminars: Workshops and seminars will be held in colleges to make people aware about the company and product features, its affordability and vast distribution network.
Banners: Hoardings, banners, will be displayed at clubs, discs, outside theatres and shops to promote our range of flavors. Booklets and pamphlets: Booklets will be kept at ice cream parlors for the customer to read. These booklets will provide information about our company; the products offered which suits the customers need according to their taste.
After deep Future Plans research and market survey it was found out that the company will meet its break even point of productionconcept in the Ice Age Ltd« is a entirely new within 1 year of its expected sales of 50000 units perthis segment of frozen deserts, because of month. the management has decided that reason currently there would only be 7 outlets of the companies ice cream parlor through out Delhi. As the company progresses in 6 ² 8 months the management has lots of plans about the future expansion of the healthy eating concept through-out state, throughout the country and then through-out the world«..
Give franchise to reputed dealers through-out Delhi. To merge with ´ FoodBazaarµ and open our ice cream outlets at all FoodBazaar's outlets. To slowly start a manufacturing unit first in Mumbai, Goa, Madras, Poona and Calcutta. Slowly capture all aspects of healthy eating i.e. introduction of healthy snacks, juices, sweets, cakes, chocolates, etc«. One of the dreams of the company of Ice Age Ice Creams is to spread the concept of healthy eating through-out the S.A.A.R.C countries.
In today¶s world of ice creams, Kwality walls, Gyanis ice cream , Kay Cee ,Nirula etc« are the leading ice cream parlors in Delhi. Their combined sale figures through-out the month is about 1,50,000 units. Ice Age ice creams being on a starting stage, will have a good advertising strategies, sales promotions, offers to attract more customers and to make them more familiar to our brand. Due to our new technique of production and distribution, even after entering the market on platform basis and investing more on the special inputs our cost nearly 15% more than the cost of our competitors, but with the concept of healthy eating we accept our sales to be around 50,000 to 60,000 units per month.
Due to our special fat free and sugar free ice creams all age groups will be able to enjoy the same old taste of ice creams but with great care of health.
THANK YOU !