Professional Documents
Culture Documents
1.1
Objective
The initial concern of this paper work is to acquire knowledge about the Marketing Strategy of some ice-cream
companies in Bangladesh, i.e., specific strategies of those companies for target markets, positioning, the
marketing mix, and marketing expenditure levels.
1.2
Marketing Strategy
A marketing strategy, in broad terms, is the business approach for marketing its products/ services which
forms the basis for developing marketing plan.
A good marketing strategy provides specific goals and can include:
1.3
Report Organization
The introduction chapter describes the marketing strategy to meet the changing conditions in the industries
and to ensure long term survival.
The reminder of the paper is organized as follows:
Chapter 2 presents the background and marketing strategy of Igloo ice-cream company.
Chapter 3 presents the background and marketing strategy of Polar ice-cream company.
Chapter 4 presents the background and marketing strategy of Savoy ice-cream company.
Chapter 5 presents the background and marketing strategy of Milk-Vita ice-cream.
Chapter 6 discusses the achievement and lacking of marketing strategies of mentioned ice-cream companies
and concludes the work.
Igloo
2.1
Abdul Monem Limited is manufacturing and marketing Igloo ice cream, countrys leading ice cream brand.
Igloo is the pioneer ice cream brand in Bangladesh, having started its operation in 1964 in Chittagong.
Later, with the expansion of market, a new factory was established in Shampur Industrial Area, in Dhaka to
cater the market demand. Presently, Abdul Monem Limited used the state of the art-straight-line technology
for manufacturing the ice cream. Actually, Abdul Monem Limited is the first in the South East Asia to introduce
this technology. The facility is producing nearly 20,000 liters of ice cream each day that is distributed through
out the country.
2.2
SWOT Analysis
A Companys Strengths, Weaknesses, Opportunities and Threats can be determined by SWOT analysis.
SWOT analysis of Igloo is discussed below:
2.2.1 Strengths
The strengths of Igloo are:
1|Page
Committed to maintain the highest quality standard, through its continuous R&D activities and Quality Control
Department.
Competitive pricing.
Good packaging.
2.2.2 Weaknesses
The weaknesses are:
2.2.3
Opportunities
2.2.4 Threats
The threats are
Major ingredients, raw materials and packing materials of Igloo ice cream are procured from Australia, New Zealand,
and Denmark. Because of money devaluation Igloo has to pay more for importing and thus the product cost increases.
But with this high cost of production company can not always increase the retail price.
Because of the poor power supply of the country storing the production in fridge is hampering.
Some illegal companies are duplicating Igloos packaging.
2.3.1 Mission
Like any other business firm Igloo Ice Cream Company also specified their mission in following manner A
world of Great Taste, which has a direct relation with their activity.
2.3.2 Goal of Igloo Ice Cream Company
Igloo is committed to provide good relationship with its consumer by not only manufacturing the highest quality
product but also delivering the product by maintaining this high quality. To satisfy the ever changing needs of
the customer, Igloo is launching regularly new ice creams and introducing new flavors. And this commitment
has positioned Igloo as the market-leading brand by gaining the consumers trust as- A World of Great Taste.
2.3.3 Overall Marketing Strategy of Igloo Ice Cream
The marketing strategy of Igloo ice cream is based on the effective market segmentation
and determination of target market. Basing on this the organization sets its product, price, placement and
promotion strategy, which ultimately enable the company to achieve its goals.
2.3.3.1 Market Segmentation and Target Market
Igloo Ice Cream Company does the market segmentation; targeting and positioning to decide which
customers it will serve and how. By market segmentation it can increase its sales and profit. In this section,
Igloo Ice Cream Companys strategies of segmenting and targeting the market by identifying the customers
needs, designing and positioning of the product to fulfill the needs are discussed.
2.3.3.1.1 Market Segmentation
Igloo ice cream designs and produces their Ice Cream basing on the Customers income, age, status and
taste. Considering the income of consumer Igloo Ice Cream has divided its market into two segments.
1.
2.
Middle class.
3.
Upper class: For the upper class people, who have higher income, Igloo has delicious Double Sundae with different
types of flavors. Igloo also has exclusive ice cream cake, Igloo Vinnetta for the upper class people.
4.
Middle class: For middle class, Igloo has lots of products like Liter box of five flavors, Lolly, Kulfi, Cup ice cream, Ripple
cake, etc.
Considering the age and taste Igloo has divided the market in the following groups.
1.
Kids: For kids Igloo have some ice creams with fancy packaging like Snow Ball, Mango Magic. Igloo also produce
cartoon shaped ice cream, named Clown and very good looking Juicy with two flavors for the kids.
2|Page
2.
Young Generation: For the young people Igloo produce Macho, Mega, Single Sundae, etc. Igloo has introduced a heart
shaped ice cream Sweet Heart and it is a very sweet present for some ones love.
3.
Diabetic patient: Only Igloo has the offer of Diabetic Vanilla, Ice cream for diabetic patient.
4.
Chocolate lovers: For the chocolate lovers Igloo has the offer of Ego, Igloo Sandwitch, Igloo Nuggets, etc.
Comparing with other companies for the same kind of products it keeps the price same.
For the unique product of the company it tries to get higher profit
3|Page
Company gives some promotional offer with its products once in a year to the consumer and two times in a
year to the retailer.
POLAR
3.1 Overview of the company
Dhaka ice cream industries Ltd. introduced the first hygienically packed ice cream in Bangladesh in 1987. The
brand name Polar was thus born.
In the early days, the company started the ice cream business with a wide range of products and a variety of
flavors in Dhaka city. In 1988, the company started its distribution in the city of Chittagong, then Bogra, and
then covered city after city. Presently, Polar ice cream is available throughout Bangladesh. The company
today is one of the leading producers and distributors of ice cream in the country.
3.2 SWOT Analysis
SWOT analysis of Polar Ice Cream Company:
3.2.1 Strengths
3.2.2 Weaknesses
3.2.3 Opportunities
As Bangladesh is a tropical country so the demand of ice cream is very high and it is growing.
Cheap labor cost.
National income has been increased.
Market is developing day by day.
New market can be explored outside of the DhakaCity.
Less number of competitors.
Diversification opportunities exist.
3.2.4
Threats
4|Page
Market Segmentation
Table 3.1
Considered Variables
Age, Income
Children & Female
5|Page
3.4.3.1 Product
Polar Ice Cream Factory aims to make its products to fulfill the requirement of their target markets. They try to
position their products differently from other competitor. Polar is predicting a large variety of Ice creams. The
width of the product mix is very narrow.
Chocobar
Chocobar is one of the largest selling products in Ice Cream industry. Vanilla with chocolate coating stick.
Cone
The Ice cream paste is filled in a Cone shaped biscuit. The product is available in Vanilla and Mango flavor.
Chewy
The Ice Cream paste is filled in a 150 milliliters of cone shaped plastic cup. This is available in vanilla and
strawberry flavor.
1 Liter Family Pack
The Ice Cream paste is filled in a 1 liter plastic container. The product is mainly designed to be used by a
small or a large family. This is available in Vanilla, Mango and Strawberry flavor.
Crunchy
Polar has first introduced this ice cream Vanilla with crispy coating.
Vanilla Toffee
This ice creams outlook followed the Logo of Polar ice cream with vanilla and strawberry flavor.
Vanilla Strawberry
This ice cream has only Vanilla and Toffee flavor.
3.4.3.2 Price
The main objectives of pricing are:
Pricing Method:
First, it determines all the cost associated with the products and then adds up a standard markup, which is
normally 25% to 30% of the cost.
3.4.3.3 Placement (Distribution Channel)
Distribution channels play a vital role in successful marking of most of the products, especially consumer
products. Dhaka Ice cream (Polar) at present has four cold stores in Dhaka, Chittagong, Bogra, and Jessore,
in Bangladesh.
In Dhaka city, it distributes its ice creams directly to retail stores in freezer vans. Besides that, it has several
distributors at different points of the city. Distributors cover their individual areas where polar is not able to
supply directly in its freezer vans.
For storing and selling ice creams in retail stores, company arranges a deep freezer with the Polar logo and
canopy light box (upon request from the store owner.)
In addition to this distribution, Polar also undertake home delivery of ice creams for special occasions.
3.4.3.4 Promotion
Promotional Activities:
6|Page
Ecards
Ice creams recipes
Promotional Tools
The essential tools for promotion of Polar Ice Cream are advertising, personal selling,
Sales promotion and direct selling. These tools are mentioned below:
Advertisement
Billboards
Personal Selling
Poster
Publicity
Savoy
4.1 Overview of the company
Savoy Ice Cream is an enterprise of Sena Kalyan Sangstha (SKS). SKS is a welfare trust created by the
Government for Ex-Armed Forces and their dependents. SKS owns various industrials and other business
units. Savoy Ice Cream has started commercial operation since March 1995. For production of Savoy Ice
Cream, Italian Technology is followed. The main plant machinery had been imported from Italy. Different types
of ice Creams are produced and its about 1600 liter per day. But the project is too small comparing with the
competitors in terms of production capacity, variety, distribution facilities, storage capacity, investment etc.
4.2 SWOT Analysis
A Companys Strengths, Weaknesses, Opportunities and Threats can be determined by SWOT analysis.
SWOT analysis of Savoy Ice Cream Company is discussed below:
4.2.1 Strengths
The strengths of Savoy Ice Cream Company are:
4.2.2 Weaknesses
The weaknesses are:
4.2.3
Opportunities
4.2.4 Threats
The threats are:
7|Page
4.3.2 Objective
The goal of Savoy Ice Cream Company is:
The core of all those activities is to compete on value and this is the crux of Savoy Ice Cream Comanys
marketing strategy as well as market expansion and customers satisfaction. Other major supporting elements
are:
8|Page
Quality Product.
Variety of Product.
Affordable Price.
Less Promotional Activity.
Less distribution Channel.
Considered Variables
Age
Age, Income
Upper class
Middle class, and
Upper middle class.
9|Page
The Ice Cream paste is filled in 100 milliliters of plastic Cup along with a wooden spoon. This is easy to handle
and is highly used by different aged customer groups. This is also available in vanilla, Strawberry and Mango
flavor and with (Ripple) 100 milliliters Cup.
Liter Box (Normal, Ripple and Special)
The Ice Cream paste is filled in a 1,2 and liter plastic container. This is another largest selling product. The
product is mainly designed to be used by a small or a large family. This is available in three different
categories, i.e. normal (with Vanilla, Strawberry, Mango and Chocolate flavor) Special and in a Ripple pack.
Lolly
This product is designed to meet the demand of the lower income customer groups. It is available in Lemon
and Orange flavor.
One liter (Ripple) Ice Cream Cake
The product is very rich in quality. Different seasonal fruits are used to make it more delicious. This product is
mainly designed for the high-income customer group.
Parlour Ice cream.
This product is very high quality of Ripple/Special Ice Cream in some very rich flavor such as praline,
Pistachio, Coffee, Kulfi, Black Currant, Trite Fruity etc. is served with seasonal Fruits topping. The product is
designed for upper middle and high-class people. These are available only in Savoy Ice Cream parlour.
4.4.3.2 Price
Pricing objectives of Savoy Ice Cream:
Pricing Method
Pricing method normally means the route taken in fixing the price. Evidently, the pricing method must be
appropriate for achieving the desired pricing objectives. In pricing the product, Savoy Ice Cream follows costplus method. First, it determines all the cost associated with the products and then adds up a standard
markup, which is normally 25% to 30% of the cost.
4.4.3.3 Place(Distribution Channel)
The products of the Savoy Ice cream are sold through direct marketing system. Generally, through Institutions
and Sales centers it distributes directly to the consumers. This is the zero level channel of Savoy Ice cream. In
the direct system, refrigerated van and trolley vans distribute Ice Cream to the shop in different areas of
Dhaka City .
Although, the distribution channel network of Savoy Ice Cream is not much wider, as the refrigerated vans and
trolley vans are not sufficient as required to maintain a fair distribution network, now it is developing day by
day. There are some distribution outlets operated by Savoy Ice Cream Factory in Dhaka, Chittagong and
other cities. The outlets are carefully chosen basing on their performance and goodwill at local markets.
4.4.3.4 Promotion
This section deals with the marketing communications mix and expenditure of Savoy Ice Cream in promotion
campaign of varieties of Ice Cream. The target audiences of the promotion efforts are the potential buyers of
the product.
Communication Objectives
The target consumers are aware of the quality and taste. Thereby the customers go for comparative
evaluation with other quality products. Thereby, the communication objective of the Company is to remind the
customer about the quality and its unique features like continuous quality assurance, taste and varieties of
products.
10 | P a g e
11 | P a g e
5.2
SWOT Analysis
A Companys Strengths, Weaknesses, Opportunities and Threats can be determined by SWOT analysis.
SWOT analysis of Milk Vita is discussed below:
5.2.1 Strengths
The strengths of Milk Vita:
5.2.2 Weaknesses
The weaknesses are:
Company cannot provide refrigerator to the retail shop, where competitors are providing it at free of cost.
Narrow product line.
Poor packaging.
Poor distribution channel.
5.2.3
Opportunities
5.2.4 Threats
The threats are:
5.3.2 Objective
To satisfy the customer needs by utilizing most of the milk produced by countrys milk producing farmers.
To earn maximum profit through more selling by quality products.
To develop the companys existing facilities.
12 | P a g e
Income
Products of Milk Vita ice cream are mostly consumed by middle class, whose income level is low.
Area
In Dhaka City Milk Vita has market in Mirpur and Mohammadpur area. Outside of Dhaka, especially in the
rural areas Milk Vita ice cream has good market.
5.4.1.2 Target Market
The target market is the grouping of customers to whom the seller specifically aims its marketing efforts.
Generally Milk Vita ice cream sells its product to middle income people.
5.4.2 Marketing Mix
The marketing mix of Milk Vita Ice cream :
5.4.2.1 Product
Milk Vita Ice Cream aims to make its products to ensure the maximum use of the milk produced by milk
producing farmers of the country. The width of the product mix is very narrow. Company does not maintain
any research for product variation but it has quality control department. Milk Vita has seven types of ice
cream.
5.4.2.2 Price
Pricing objectives of Milk Vita Ice Cream:
6.2 Conclusion
Comparing to the market and other industries, Ice Cream industry is a small issue but a place where there is a
scope to exercise marketing policies in a new and innovative manner. There are many Ice Cream Factories in
13 | P a g e
our country. But among them very few are well known. Igloo, Polar, Savoy and Milk Vita are well known brand
of the country. All of these four companies have some strategies for their marketing. Igloos marketing strategy
is good comparing with others. But Polar, Savoy does not follow all of the strategies for marketing that a good
company should follow. Marketing Strategy of Milk Vita ice cream is very poor. It should improve it marketing
strategy for going further.
14 | P a g e