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Ice

Cream
Industry
Group members:
Maryam Javed
Fatima Jamil
Minhaj Khalid
M. Ismail
Rai M. Ibtisam
Introduction:

•Ice cream is a frozen desert.


•In Pakistan Hico was the first ice cream company
•Up till nineties there were only four

recognized ice cream brands


•Unilever’s Walls and Engro’s Omore

•Total installed capacity of ice cream


Major international and local competitors
in Pakistan’s Ice cream Industry
• Hico- The first ice cream company of Pakistan.
•Yummy ice cream- Operates in more than 70% of the

country and their average sales are Rs. 3 million per


day.
• Igloo ice cream- Ice cream full of fun
•Walls- Has about 60% of the total market share in

Pakistan.
• Omore- Company’s Turnover is about 751 Million

• Gourmet Ice cream- Low prices


Market Share

Walls Omore Igloo Other


Some of the new emerging
•competitors
Frozen Yogurt- A :healthy desert
•Kulfi- One of the traditional dessert
•Gelato- Manolo Gelato
•Frozi ice cream- All natural and healthy popsicles

•Some of the International brands competing in Pakistan’s


Ice cream Industry are:
-Baskin Robbins
-Haagen Daz
-Ben & Jerrys
Porter’s five forces
1. Threats of model
new entrance:
•A new a potential competitor entrance in an industry is a threat for the
existing companies.
•There are many barriers for new entrance like;
i.Required resources, technology, human resource and capital
requirements for starting the business.
ii.Product differentiation.
iii.Need to connect target market with your new brand.
2. Threats of substitute goods:
•The substitutes of ice cream are yogurt, pudding, kulfi, fruits and milk etc.
•Market distribution and market share of these products is very less.
•Lack of intensive promotion and advertising of these products in Pakistan.
•If they start effective marketing strategies, the level of competition and the
threats of substitute would be higher.
Porter’s five forces
3. Bargainingmodel
power of suppliers:
•The main ingredient of ice cream is milk
•Pakistan is the 4th largest milk producer in the world.
•Numerous suppliers are present here in Pakistan to provide with its basic
commodity.
•The purchasing of milk in large quantity and its availability in Pakistan.
•So the bargain power of suppliers is low here.
4. Bargaining power of buyers:
•Few market players that are very popular among people and
•Generating most of the revenue comes from them.
•The local ice cream parlors are not generating much sales.
•The here the buyers of ice cream industry have higher bargaining power as
compared to their suppliers.
Porter’s five forces
model
5. Rivalry of competitors:
•The competition level is high in this industry
•Major players of the industry are Walls, Omore, Igloo and Hico.
•All are trying to achieve higher position in the market.
•For the better future of this industry, the factor of competition
must be examined critically.
•They need to have effective marketing strategies to promote their
brand.
•For example Walls with highest chunk of ice cream industry.
•Other rivals in this industry also need to start doing effective
advertising through TV, radio, and social media etc.
PESTEL Analysis

Political
•Political condition of Pakistan has been very uncertain.
•Encouraged many foreign investors to invest in Pakistan

Economical
•New and different ice cream style caused attraction.
•Issue of MNCs.
Social
•Majority of Pakistani Population belongs to poor class.
•Price constrained ice creams for poor consumers
PESTEL
Analysis
Technological
•High technology machineries being used in the manufacturing units
•The supply chain of the daily product and the logistics improvement
Legal
•Follow regulation regarding sales taxes
•Retail prices of the ice cream increase

Environmental
•“Clean and green Pakistan” Campaign
•Packing of the ice creams
SWOT
Analysis
•For identification of strengths, weaknesses, potential opportunities
and threats

•External environment includes Opportunities and Threats analysis

•Internal environment includes Strengths and Weaknesses analysis


Internal
environment
Strengths Weakness

•Unique and wide range of flavors •The durability of ice-creams is


•Reasonable pricing limited and it melts easily
•Wide product range •Limited presence
•Good quality ice-cream together •Limited market share as it is
with good packaging is sold diluted by presence of many
•Demand for ice-cream is producers and sellers
always present
Targeting and
segmenting
•Ice cream Industry of Pakistan mainly targets children and families
as their marketing strategies and advertising are based on these
both.

•Mainly Ice cream industry segments its market on the basis of


two main demographic characteristics

•Demographic segmentation
•AGE
•INCOME
Other
Segmenting
Behavioral segmentation
• Occasions
• Benefits
• Usage rate

Psychographic segmentation
• Social class
• Life style type
• Personality type

Geographic Segmentation
Positioning
Ice cream industry

Low Quality

Price
High

Price
Low
High Quality
THANK
YOU!

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