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INTRODUCTION
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1. Introduction
1.1 Historical background of Polar Ice Cream
The polar brand of Ice Cream Came into being in 1987, Dhaka Ice Cream Industries limited pioneered in the first hygienically produced and packed Ice Cream in Bangladesh, with the important ingredients mostly from renowned manufacturer of Australia, European etc. Prime concern of Polar ice cream is the food safety to the valued consumers. With cold hubs in Dhaka, Gazipur, Chittagong, Comilla, Sylhet, Bogra, Rangpur, Rajshahi, Khulna and Jessore the distribution of Polar Ice Cream can be found almost everywhere in the country. For long distance delivery points we have commissioned freezer vans.
Number of Employees Company Website URL Year Established Ownership Type Main customer
1.3 Mission
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To become a unique organization by producing and selling quality products through continuous improvement and add value to the stakeholders
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1.4 Objective
The goal of Polar Ice Cream Company is: Good services to customers. Increase return on investment through more selling by quality products. To become the market leader.
1.5 Products
Polar has a lot of variation in designing its products. Products are basically categorized into main 5 categories. 1. 2. 3. 4. 5. Stick Ice Cream Cup Ice Cream Cone Ice cream Liter Container Ice Cream Cake
All of these categories have different tastes of products. Below is a chart of whole products available in these categories.
Liter Container
Regular (4) Premium (7)
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2. STP Marketing
STP marketing is a three-step approach to building a targeted marketing plan. The "S" stands for segmenting, the "T" for targeting and the "P" for positioning. Going through this process allows a business owner and marketing consultants or employees to formulate a marketing strategy that ties company, brand and product benefits to specific customer market segments.
Segmenting
Targeting
Positioning
Segmenting The segmenting step is essentially a brainstorming activity. First to list out all the potential market segments a company could target in a marketing campaign.
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Targeting When a company has multiple, distinct market segments, they typically need to customize marketing campaigns that appeal to each. Going through the STP process, the company selects which segment to target for upcoming campaign.
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Positioning Positioning is how a company aligns its brand or products in the target market. The goal is to offer something that is bigger, better or more valuable than your competitors to a particular market segment. Implementation Once a company has strategized using the STP process, the next step is to implement all marketing tasks to achieve intended goals. If they want to increase brand awareness within an emerging market, they would design commercials or ads that introduce their brand and develop an image. They may pick media commonly used by that target group. For instance, they would create print, radio, TV, magazine, Internet or other ads that promote their quality or value to customers.
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Clear identification of the segment Measurability of its effective size Its accessibility through promotional efforts, and Its appropriateness to the policies and resources of the company.
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Requirements of Market Segments In addition to having different needs, for segments to be practical they should be evaluated against the following criteria: Identifiable Accessible Substantial Unique needs Durable
A good market segmentation will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments.
Demographic (What)
Psychographic (Who)
Geographic (Where)
Market Segmentation
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Behavioral (How)
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1. Geographic segmentation The market is segmented according to geographic criterianations, states, regions, countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific with respect to region; in rainy regions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you can sell warm clothes. The following are some examples of geographic variables often used in segmentation.
Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions
2. Demographic Segmentation Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. As one might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process. Some demographic segmentation variables include:
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Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion Social class
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3. Psychographic Segmentation Psychographics is the science of using psychology and demographics to better understand consumers. Psychographic segmentation: Consumers are divided according to their lifestyle, personality, values. Aliens within the same demographic group can exhibit very different psychographic profiles. Some psychographic variables include:
4. Behavioral Segmentation In behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer. Some behavioristic variables include:
Benefits sought Usage rate Brand loyalty User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases
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Considering the end-users and sales agents/retailers needs in mind, Polar Ice Cream has divided its market into segments as shown in Table. Considered Variables Age Group Family Size Income Segmentation Baby Adult Small Large Low Medium High Students Family Corporate Types of Products Baby Ice Creams All Other Ice Creams Stick, Cup & Cone Ice Cream Liter Container, Cake Ice Cream Stick Stick, Cup, Cone, Liter Container Cone, Liter Container, Cake Ice Cream Stick, Cup, Cone Liter Container, Cake Ice Cream Liter Container, Cake Ice Cream
Social Class
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Targeting Broadly
Targeting Narrowly
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All the targeting approaches are described below: 1. Undifferentiated Marketing: Undifferentiated marketing refers to an approach when a firm produces only one product or product line and targets all of its customers with a single marketing mix. The other term used for this approach is mass marketing. In Mass Marketing, the market coverage strategy essentially ignores the market segment differences and goes after the whole market with one offer. This marketing approach attempts to sell through persuading a wide audience. Usually the idea is to broadcast the message with an aim to reach the largest number of people possible. Mass marketing focuses on media coverage such as radio, television and newspapers. The idea is to maximize the exposure to the product. Examples of mass marketing products are toothpastes, which are not made especially for one consumer group or segment and are sold in huge quantities. Other examples are furniture, artwork, automobiles, residential communities, cola drinks and personal computers. 2. Differentiated Marketing: The differentiated marketing refers to the approach of the firms, which produce numerous products with different marketing mixes. These products are designed to satisfy the smaller segments. In this approach, instead of marketing one product with a single marketing program the firm approaches the different consumer groups with products customized for each group. Most companies do this for specialization and to remain competitive. The differentiated marketing essentially requires market segmentation and incurs a higher production cost, inventory cost and marketing costs. 3. Concentrated marketing: The popular term for concentrated marketing is niche marketing. Another term for the same is "Focused Market". A niche market is a subset of the market on which a specific product is focusing. Each niche market essentially defines specific product features such as product design, price range, production quality and the demographics that is intended to impact. In niche marketing, the firm essentially focuses. Niche marketing chooses a small segment provided it's a profitable segment. This approach is most suitable to smaller firms, which have lesser resources.
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4. Micromarketing: This is the narrowest approach of targeting. It is most effective technique for small business users to sustain, build and grow their own brand. It targets the potential customer at the very basic and personal level.
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2.8 Positioning
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. A products position is the way the product is defined by consumers on important attributesthe place the product occupies in consumers minds relative to competing products. Choosing a differentiation and positioning Strategy for product The differentiation and positioning a task consists of three steps: identifying a set of possible customer value differences that provide competitive advantages upon which to build a position, choosing the right competitive advantages, and selecting an overall positioning strategy. The company must then effectively communicate and deliver the chosen position to the market.
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2. Choosing the Right Competitive Advantages After discovering several potential differentiations that provide competitive advantages a company must choose the one specific strategy on which it will build its positioning strategy. It must decide how many differences to promote and which ones.
How Many Differences can be promoted: Company should develop a unique selling proposition for each brand & stick to it. Each brand should pick an attribute & tout itself as number one on that attribute. Companies should position themselves on more than one differentiator. Companies should broaden their positioning strategies to appeal to more segments.
Which Differences to Promote: Important : The difference delivers a highly valued benefit to target buyers. Distinctive : Competitors do not offer the difference, or the company can offer it in a more distinctive way. Superior : The difference is superior to other ways that customers might obtain the same benefit. Communicable : The difference is communicable & visible to buyers. Preemptive : Competitors cannot the difference easily. Affordable : Buyers can afford to pay for the difference. Profitable : The Company can introduce the difference profitably.
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3. Selecting an Overall Positioning Strategy Value propositions (the whole cluster of benefits the company promises to deliver) represent the full positioning of the brand
More
Benefits
Same
Undifferentiated
Less
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4. Developing Positioning Statement: A statement that summarizes company or brand positioning it takes this form: To Our Is That (target segment and need) (brand) (concept) (point-of-difference)
5. Communicating and Delivering the Chosen Position Once company has chosen a position, the company must take strong steps to deliver and communicate the desired position to its target consumers.
Communicating
Company
Chosen Position
Product, Price, Place, Promotion
Delivering
Target Customers
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Distribution Channel
Convenient Price
Quality of Product
Variety in Product
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Communicating
Target Customers
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3.1 Product
Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Augmented Product
Delivery & Credit Brand Name Core
Actual Product
Features
Customer
Value Design
Warranty
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1. Core Product The CORE product is NOT the tangible physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly. 2. Actual Product The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual product is what the average person would think of under the generic banner of product. 3. Augmented Product The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be converted in to benefits for individuals.
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2. Actual Product Brand Name: Polar Features: Ice Cream with different taste and flavor Proper Extent of Ingredients Used Australian raw materials are used in production European technology used in packaging and distribution
Design or Flavors: Vanilla, Strawberry, Fruity, Doi, Kheer, Pista, Chocolate, Malai, Cake Packaging: Stick, Cup, Cone, Liter Container and Cake Quality Level: Regular and Premium
3. Augmented Product Polar Provides delivery of their products with their own van and also facilitate their customers with payment flexibility.
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Product mix consistency pertains to how closely related product lines are to one another--in terms of use, production and distribution. A company's product mix may be consistent in distribution but vastly different in use. For example, a small company may sell its health bars and health magazine in retail stores. However, one product is edible and the other is not. The production consistency of these products would vary as well.
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Vanilla Carnival Mango Chocodelight Strawberry Googly Caramel Chocolate Doi Kheer Pista
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PRODUCT MIX
Width
Chocobar Malai Crunchy Lolly Penguin Cool Shell Rocks Mango Lemon Orange
Carnival Chocodelight
Length
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Depth
Stick
Cup
Cone
Liter Container
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Branding Strategies
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Product Category
Existing New
Existing
Brand Name
New
Brands
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4.3 Conclusion
From an extensive marketing analysis of the ideas and marketing concepts at work in the operation of Polar Ice Cream, it is possible to obtain an insight to the essential marketing practices adopted by the company. Evidently by virtue of its unique product attributes, high quality, exquisite and mouth- watering varieties of ice creams, attractive and distinct packaging, Polar Ice Cream has been able to ensure marketing excellence and enhance its competitiveness.
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References
On Net References 1. 2. 3. 4.
http://www.polarbd.com/index.php
Print References 1. Principles of Marketing, 14th Edition, Philip Kotler & Gary Armstrong 2. Product Mix Strategies:FMCG in Indian Market, Mohankumar T.P. and Shivaraj B.
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