ice age report

8/8/2019 Ice Age Report

1/18

NAME OF THE PRODUCT

GROUP MEMBERS:

NAME ID NO

Md. Zakir Hossain Antor 083739030

Md. Musfiqul Islam 083753030


2/18

Company profile:

Name: Ice AgeThe Healthy Ice Cream Parlor

Product: Sugar free and Fat free healthy Ice Creams. Health conscious desert.

Proposed Flavors: World famous Vanilla and 20 different mouth watering flavors.

Project: Manufacturing and selling of healthy sugar free and fat free Ice Creams.Specially made for health conscious and sweet tooth people.

Investments:

Total capital investment require:7 core

Borrowed capital (loan from HSBC bank): 3 core

Total partners investment start on production:4 core


3/18

Introduction:

Founded in Dhaka Ice Age Ltd. Company is setting up an Ice Cream manufacturingand selling parlor. The project will have great significance in the present day context of

increasing weight and illness among the youth as well as adults due to increasing fatand sugar intake due to increasing content of sweetener in the Ice Creams and juices.

The manufacturing of all types of ice creams will be done at its production site andthen will be transported to its parlors established in the heart of the city. Ice Age Ltd. isentering the Bangladesh market with an aim of establishing its brand as a necessity ofthe Bangladeshi buyers.

The company will follow a strategic positioning approach for the target market. IceAge Ltd. has kept into account the income and behavioral factor of the Bangladeshibuyers while designing the products. It is important for the company to understand the

consumer behavior before it goes into such a market. The Bangladeshi consumer forthe first time will have a premium product which is eco-friendly, healthy and affordable.

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 most important

factor for the success of Ice Age Ltd. brand is the perception of the consumer and to

what extent it can build a positive image in the consumers mind. The intensity of thebusiness environment, the sustainable competitive advantage of a quality product will

give it a strong base to build the market. It is important for us to adopt a different

strategy for the Bangladesh market since it is composed of quality buyers as well as

those who will buy for their family. Thus, we shall introduce some new strategies so as

to establish our self in the Bangladesh market and develop a strong customer base .


4/18

The model of marketing strategy by Ice Age Ltd.

Product Range

External Analysis

Competitors Analysis

Internal Analysis

Environment Analysis

Marketing Strategies

Future Plans

Conclusion


5/18


6/18

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.

Budget:

Name of Costs: Amount(tk.)

Land for factory and branch 1,00,00,000

Factory and branch building 1,00,00,000

Machine 3,00,00,000

Advertisement 50,00,000

Raw materials 25,00,000

Decoration 25,00,000

Vehicles 70,00,000

Insurance and Others 30,00,000


7/18

According to the recent studies, most of the newly launched product or servicesfail due to improper analysis of their internal and external needs.

A company should most effectively and efficiently take care of all the internalmatters and needs.

Since internal analysis is so use full and the life cycle as well as pricing is totallydepended upon this analysis, Ice Age Ltd. has taken proper and fully effective steps inanalyzing all the need and requirements of the company.

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


8/18

Competitor analysis

Competitors are the main threat for our company. So first we have to analysis

all competitors to establish our company. We have to give better and best

Quality to customer.

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 consumers mindset is of vital importance as perception of individuals at

the buying stage of various brands is unpredictable and ever changing.

Market Share

The market share of the players in the two wheeler auto market needs to be studied to

know which company is in the booming stage and which company is in its closure

stage. Also the advertisement and promotional share needs to be studied. Thus, marketshare helps us know the current market leader and market follower so that our company

can develop an efficient marketing strategy for its product range after analyzing the

current market players position.

SWOT Analysis

The SWOT Analysis i.e. the Analysis of the Strengths, Weaknesses, Opportunities and

Threats of the company products and its competitors at a glance. It needs to be

compared to get an overall analysis of all the major companies and to know the

company having better strengths, more opportunities and on the other hand the

company having more of weaknesses and threats.


9/18

0

5

10

15

20

2530

35

40

45

1st Qtr

natural

sub zero

others

The above diagram represents the sales of the famous Ice Cream parlors inBangladesh and their sales before Ice Age entered the market

0

5

10

15

20

25

30

35

1st Qtr

natural

ice age

sub zero

others

This diagram represents the sales pattern of all the Ice Cream parlors in Bangladeshincluding Ice Age Ice Cream Parlor after one year from the launch of Ice Age Ltd...(Estimated)


10/18

High initial launch cost

There is a large front-ended investment made in new products including cost of productdevelopment, market research, test marketing and most importantly its launch. Tocreate awareness and develop franchise for a new brand requires enormous initialexpenditure is required on launch advertisements, free samples and productpromotions. Launch costs are as high as 50-100% of revenue in the first year and thesecosts progressively reduce as the brand matures, gains consumer acceptance andturnover rises. For established brands, advertisement expenditure varies from 5 - 12%depending on the categories. It is common to give occasional push by re-launches,

which involves repositioning of brands with sizable marketing support.

Market research

Customers purchase decisions are based on perceptions about brands. They also keepon changing with fashion, income and changes in lifestyle. Unlike industrial products, itis difficult to differentiate products on technical or functional grounds. With increasingcompetition, companies spend enormous sums on product launches. Market researchand test marketing become inevitable. The business rests on the two aspects that arebrand equity and distribution network.

Marketing driven

In relative terms, marketing function has greater importance in the Ice Cream industry.The players have to reach out to mass population and compete with several otherbrands. The perceived differences are greater than the real differences in the product.


11/18

The differentiations concept is to make the product different from those of its competitor.When we look at the Bangladesh Ice Cream market we see that the leaders naturalshave constantly maintained its market leadership by constantly differentiating on thebasis of new flavors.

And coming up with line extensions with regular frequency. The only alternative for IceAge Ltd.to survive in this industry will be to differentiate itself. This differentiation couldbe on the basis of the marketing mix. (Product, Price, Promotion, Place) Thus, as perthe different factors of marketing mix 4 Different strategies are made to market in thedeveloping cities in Bangladesh.

Ice Age the healthy ice cream parlor offers a wide range of sugar free and fat freeice creams. The ice creams are specially made keeping in mind all the health consciouspeople as well as youth and people who suffer from illness like diabetes. Age IceCreams are totally fat free and sugar free with the same original taste.

Ice Age is a healthy ice cream parlor which targets the higher middle class and richclass of the society.


12/18

Segmentation variables

Several variables differentiate consumers who prefer different kinds ofDesserts, such as frequency of consumption, price sensitivity, relative importance ofcalories vs. taste, consumption occasion (at home, at work, at a social event, duringrecreation or at a restaurant), and desired serving size. The two most importantvariables are probably price sensitivity and the taste-calorie tradeoff.The reason that price sensitivity is especially important is that some consumers will payhigh prices for a product of high quality. Therefore, one might be able to make largemargins selling to that market. On the other hand, there is a large market that will notbuy desserts that are priced too high; therefore, some of the manufacturers will want to

provide value-priced frozen desserts that may sacrifice quality somewhat. Consumerstoday tend to be increasingly health conscious, and many will therefore want to limit theamount of calories in the desserts they consume. On the other hand, desserts areconsumed for pleasure, and other consumers are unwilling to sacrifice the tasteprovided by calorie-rich desserts. There are also certain people who have highmetabolisms or engage in strenuous activity, leaving them with less worry about weightgain. Frequent or heavy users of frozen desserts would a great target, but this group isnot readily identifiable and reachablethese consumers are not likely to have distinctmedia habits or to frequent particular stores, for example. Serving size preference is animportant issue, but is addressed already to some extent by price sensitivity.

Segments Based on Combinations of Variables

Price sensitivity is clearly a matter of a degree, with each consumer being somewhereon the continuum from extremely price insensitive to extremely sensitive. However, itseems reasonable to divide consumers into insensitive, value-conscious, pricesensitive, and highly price sensitive groups. In terms of the taste-quality dimension,reasonable categories might be taste dominated, balance seekers, and calorie misers.With four levels of price sensitivity and three levels of taste-calorie tradeoffs, twelvecombinations emerge. The more important segments will be discussed. PriceInsensitive Indulgers are consumers who take their dessert experiences seriously and

will let neither price nor calories get in the way of their desserts. These consumers wanthigh quality ingredients and tend to be very brand conscious. Because their high level ofinvolvement, these connoisseurs will often exchange tips with each other on what to try.They can be quite unforgiving to the brand if they have a bad experience. Often, theybuy from specialty stores, such as bakeries, but may also indulge in super-premium icecream. The Dessert Pragmatists represent a large group of consumers who enjoygood desserts but are concerned about both price and quality. They are willing to paymore money for a good dessert, but will tend to switch brands if their favorite dessert is


13/18

not on sale. They care about taste and will not buy a low fat concoctions without taste.On the other hand, they tend to avoid high fat ice-creams. They tend to buy brandedproducts and pay attention to calorie contents on the containers.

Value Gluttons are concerned about price but are less concerned about calories. A

dessert has to be relatively inexpensive for them to buy it. They therefore often buyregional and store brands. They buy ice cream and other sweets frequently and eatlarge portions.

Sophisticated Waist liners are greatly concerned about their figures and dreadcalories. This group predominantly consists mostly of women. Some are affluent whileothers are willing to make financial sacrifices to stay healthy. This group enjoyssophistication in selecting high quality products and is very status conscious. Often, thisgroup will prefer small serving sizes of rich desserts, and desserts are often consumedin a social setting. This group tends to shop in upscale supermarkets and inconvenience stores.

Budget Conscious Realists consist of consumers who are very price sensitive and aremoderately concerned about calories. Typically, this group includes modest incomefamilies, large families, or families headed by a single parent. Parents are concernedabout the amount of calories that they and their children consume, but money is limited,so they tend end up buying what is less expensive. This group tends to buy what is onsale, generics, or store brands.

Strengths:

Less fixed cost required

Healthy

No side effects

Less consumption of sugar

Less consumption of fats

Reduces chances of illness like diabetes


14/18

Useful for health conscious people

Tasty with health

Variety

Eco-friendly

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:

Lot of competition from existing Ice Cream parlors offering sugar free ice creams


15/18

Ice Age Ltd introduces Ice Age Ice Creams The Healthy Ice Cream Parlor whichbrings to you a new generation of ice creams.

There are many choices in todays ice cream case to suit a wide variety of consumerstaste. There is plenty of information on food labels, but what does it really mean? WhereIce 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 referenced product

(either an average of leading brands, or the company's own brand.)"Light" ice cream contains at least 50% less total fat or 33% fewer calories than thereferenced product (the average of leading regional or national brands.)"Low fat" ice cream contains a maximum of 3 grams of total fat per serving"Nonfat" ice cream contains less than 0.5 grams of total fat per serving.

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


16/18

Variety of flavors for the first time in sugar free and fat free concept

More than 30 different flavors to choose from

Same taste

Ice Age Ltd will be establishing its marketing throughout Dhaka .Ice Age ice creamsbeing an entirely new product in the market will initially operate only in Gulshan-2 tillfurther expansion.

Ice Age ice creams being fat free and sugar free requires some extra integrants andproducts which increases the cost of the ice cream by 15 20 %. The segmentation ofIce Age ice creams is done on the basics of Demographic segmentation andpsychographic segmentation. Keeping this segmentation in mind the management hastaken steps to open its shops at the following places in Dhaka:

Banani

Baily road

Baridhara

Mirpur

Uttara

The main production of all the products will be done at the main unit based at Gazipurand then will be transported to all its shops at different places all over Dhaka.


17/18

We will give all the retailers/direct-dealers a good profit margin than our competitors areproviding them We will also give them incentives

Television advertisements: Advertisements to promote and market our product will beshown on leading television channels. Like Channel I. We also distribute lift lets. Wewill arrange some concerts in different varsities like, North South University, AIUB, IUB,East West etc.

The pricing strategy adopted by Ice Age Ltd. for its two wheeler electronic bikes isSKIMMING PRICING because it is a total new brand, which is entering a market, so weare selling the product at high price but not more than our competitors.

After considering all the factors i.e. cost of production, transportation cost, storecharges, etc and after analyzing this data the finance manger Mr. Musfiqul Islamcoated the price list according to the material requirement of the product and the makingcharges with considering all other of the store also.

According to Mr. Musfiqul Islam the cost of per scoop of ice cream will BDT 70 whichwould earn the company a profit of 20% on cost.

After deep research and market survey it was found out that the company will meet itsbreak even point of production within 1 year of its expected sales of 50000 units permonth.


18/18

Ice Age Ltd is an entirely new concept in the segment of frozen deserts, because ofthis reason the management has decided that currently there would only be 5 outlets ofthe companies ice cream parlor through out Dhaka. As the company progresses in 3 4months the management has lots of plans about the future expansion of the healthyeating concept through-out state, through-out the country and then through-out theworld..

Give franchise to reputed dealers through-out Dhaka

To slowly start a manufacturing unit first in Chittagong and Sylhet.

One of the dreams of the promoters of Ice Age Ice Creams is to spread the concept ofhealthy eating through-out the S.A.A.R.C countries.

In todays world of ice creams, Naturals, Sub zero, Move n pick, etc are the leadingice cream parlors in Dhaka. Their combined sale figures through-out the month is about1,50,000 units. Their advertising strategies, sales promotions, offers, etc are not on acontinuous stretch because these parlors are in the market for sometimes

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 toour brand. Due to our new technique of production and distribution, even after enteringthe market on platform basis and investing more on the special inputs our cost nearly15% more than the cost of our competitors, but with the concept of healthy eating weaccept 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 enjoythe same old taste of ice creams but with a dash of health.

ice age report

Documents