comparative study on ice cream industry

8/10/2019 Comparative Study on Ice Cream Industry

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INTRODUCTION

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 targetmarkets, 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:

A description of the key target buyer/end user.

Competitive market segments the company will compete in. Distribution channels.

The unique positioning of the company and its products versus the competition.

The reasons why it is unique or compelling to buyers.

Price strategy versus competition

Marketing spending strategy with advertising and promotion.

Possible research and development

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 2presents the background and marketing strategy of Igloo ice-cream company.

Chapter 3presentsthe background and marketing strategy of Polar ice-cream company.

Chapter 4presents the background and marketing strategy of Savoy ice-cream company.

Chapter 5presents 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 Overview of the company


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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:

Igloo is the market leader.

Goodwill of the company and brand image.

Strong distribution network as its product is available in every district and Upozilla of

Bangladesh.

Igloo is the only ISO 9001:2000 & HACCP certified ice cream Company in Bangladesh.

Varieties of products.

Continuously launching new and innovative delicacies.

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:

Decentralized management system.

Only managing director can take every decision.

Make delay for taking decision.

2.2.3 Opportunities

The opportunities are:

Demand of ice cream is very high and it is growing.

Market is increasing 15% per annum.


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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 topay 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 ishampering.

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 followingmanner 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 thehighest 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 brandby 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.


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1. Upper class, and

2. Middle class.

3. Upper class: For the upper class people, who have higher income, Igloo has deliciousDouble 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 goodlooking Juicy with two flavors for the kids.

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 diabeticpatient.

4. Chocolate lovers: For the chocolate lovers Igloo has the offer of Ego, Igloo Sandwitch,Igloo Nuggets, etc.

2.3.3.1.2 Target Market

The target market is the grouping of customers to whom the seller specifically aims its marketing

efforts. The careful selection and identification of target market is essential for

the market expansion and customers satisfaction. Generally Igloo ice cream sells its product to

higher income and middle income people.

2.3.3.2 Marketing Mix

The Marketing mix for the existing marketing system can be illustrate in terms of 4Ps of

marketing i.e., (1) Product (2) Price (3) placement or distribution Channel and (4) Promotion.The marketing mix of Igloo Ice cream is discussed below:

2.3.3.2.1 Product

Igloo offers the widest choice of ice cream to its discerning consumers, more than any other

competitor in the market. Igloo is offering more than fifty items, including normal premium andnovelty cup, stick and family pack items. Igloo has more flavors than anyone else in the industry

and is continuously launching new and innovative delicacies.

The brand name, the package, the labeling all go into build up the personality of its product.

Igloo aims to make its products to fulfill the demand of its target markets. Company tries to

position its products differently from other competitor. Every year Igloo launches at least two


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new products to satisfy ever changing needs of the customer. Igloo is predicting a large variety

of Ice creams.

2.3.3.2.2 Price

Pricing objective:

Pricing objective of Igloo is to survive in the market and get maximum profit.

Pricing method:

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

2.3.3.2.3 Place(Distribution Channel)

The distribution network is stretched all over the country with a long fleet refrigerated vans.

Firstly, the ice cream products are stored at the central warehouse of the factory, and from thereproducts are distributed to every district and upazilla.

Strictest cold chain maintenance during the distribution and selling of ice creams is ensured.

Retail shops are provided with attractive deep freezers to ensure proper storage and display ofproducts.

Igloo also operates through trolleys for extending its reach to consumers at the furthest points.

The trolleys are operated near schools, alleys, streets, Parks etc.

2.3.3.2.4 Promotion

Igloo ice creams main promotional strategy is to keep close to customers eyes.

Igloo has more than hundred trolleys in the country and these are very colorfully decorated with

Igloo umbrella and the puller wears specific uniforms. Trolleys play rhythmic music, whichattracts the people to buy it.

Igloo does the advertisements in led displays of the citys centre points, TV channels. They

have many billboards in different areas and road side signboards.

Igloo also arranges events in theme parks, schools.

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


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Dhaka ice cream industries Ltd. introduced the first hygienically packed ice cream in Bangladeshin 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 avariety 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 ofice cream in the country.

3.2 SWOT Analysis

SWOT analysis of Polar Ice Cream Company:

3.2.1 Strengths

Use Danish equipment and technology.

Production activities and quality control measures are supervised and managed by Danish

expert.

Raw materials are imported from Europe.

Steady growth of the organization.

Competitive pricing.

Product quality.

3.2.2Weaknesses

Narrow distribution channels. Few promotional activities.

Sales decrease in winter and rainy season.

Can not provide fridge to all retail shop.

Insufficient electricity supply.

Centralized management system.

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


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Increased price of raw materials.

Highly competitive market.

Uncontrollable situations like bad weather, irregular power supply, political violence,flood etc.

High cost involvement for automatic plant and for providing freeze to the retailer.

Consumers change their taste and flavor rapidly. Easy entry in the market for any supplier.

3.3 Polar Ice CreamAn overview from marketing perspective

3.3.1 Mission

Polar Ice Cream Company specified their mission in following manner Maintain the best

quality and supply as required by the consumer.

3.3.2 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.

3.4 Overall Marketing Strategy of Polar Ice Cream Factory

Basing on point of differentiation, effective market segmentation and determination of targetmarket the organization sets its product, price, placement and promotion strategy, which

ultimately enable the organization to achieve its goals.

3.4.1 Point of Differentiation

At present Polar Ice Cream Factory markets different types of Ice Cream. To support the market

expansion and customers satisfaction, it gives importance to some major aspects. And the

company always tried to be differentiated from others in all those places and those are shown in

figure.


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3.4.2 Market Segmentation and Target Market

In this section, Polar Ice Cream Factorys strategies of segmentingand targeting the market byidentifying the customers needs, designing and positioning of the product to fulfill the needs are

discussed:

3.4.2.1 Market Segmentation

The factors, which have been considered for segmenting, are

(1) Age and Income

(2) Children & Female.

Considering the end-users and sales agents/retailers needs in mind, Polar Ice Cream has divided

its market into segments as shown in Table.

Table

3.1 : Pol

ar IceCream

Companys

Segmentation Pattern

3.4.2.2 Target Market

Upper middle class

Types of Products Considered Variables

1 liter Family Pack, Cone, Crunchy, Vanilla

Strawberry

Age, Income

Choco bar, Vanilla Toffee, Crunchy, cone, cup Children & Female


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Middle class

Lower middle class

3.4.3 Marketing Mix

The Marketing mix for the existing marketing system can be illustrated in terms of 4Ps of

marketing.

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 invanilla 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 beused 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 out look followed the Logo of Polar ice cream with vanilla and strawberry

flavor.

Vanilla Strawberry


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This ice cream has only Vanilla and Toffee flavor.

3.4.3.2 Price

The main objectives of pricing are:

To survive in the market.

To gain maximum profit.

To maximize revenue.

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, ithas 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:

Yearly Children Competition Program

Offering scratch cards to the consumers for discounts and gifts.

On-line offerings:

Polar Fan club

Fun & games

Cool contest

Ecards

Ice creams recipes

Promotional Tools


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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


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 machineryhad 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 b y SWOTanalysis. SWOT analysis of Savoy Ice Cream Company is discussed below:

4.2.1 Strengths

The strengths of Savoy Ice Cream Company are:

Strong administrative backup by SKS.

Goodwill of SKS.


Competitive pricing.

Product quality.

Sound management.

4.2.2 Weaknesses

The weaknesses are:


Weak distribution channels.

Narrow product line.

Poor packaging.


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Low brand image.

Poor promotional strategy.

4.2.3 Opportunities


Total amount requirement of ice cream is very high and it is growing.


New market can be explored outside of the DhakaCity.

Less number of competitors.

Financial support exists from SKS.

Diversification opportunities exist.

4.2.4 Threats

The threats are:

Small project of SKS.


Uncontrollable situations like bad weather, political violence, flood etc.

High cost involvement for automatic plant.

Rapid change of customer choice.

Easy entry in the market for any supplier.

4.3 Savoy Ice Cream Company- An overview from marketing perspective

4.3.1 Mission

Like any other business firm Savoy Ice Cream Company also specified their mission in

following manner To ensure the best quality and taste, which has a direct relation with theiractivity.

4.3.2 Objective

The goal of Savoy Ice Cream Company is:

To satisfy the customer needs.

To earn maximum profit through more selling by quality products. To develop the companys existing facilities.

4.4 Overall Marketing Strategy of Savoy Ice Cream

Point of differentiation, Effective market segmentation and determination of prudent target

market is a prerequisite to the success of any business organization. Basing on this the


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organization sets its product, price, placement and promotion strategy, which ultimately enable

the organization to achieve its goals.

4.4.1 Point of Differentiation

At present Savoy Ice Cream markets different types of Ice Cream. To support the marketexpansion and customers satisfaction company gives importance to some major aspects. And

the company always tried to be differentiated from others in some places and those are shown in

the figure 4.1.

The core of all those activities is to compete on value and this is the crux of Savoy Ice CreamComanys marketing strategy as well as market expansion and customers satisfaction. Other

major supporting elements are:

Respect for Customers.

Quality Product.

Variety of Product.

Affordable Price.

Less Promotional Activity.

Less distribution Channel.



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Savoy Ice Cream Company segments its markets so that it can respond more effectively to

the wants and needs of prospective customers and thus increase its sales and profit. In this

section, Savoy 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.


Savoy Ice Cream sells their Ice Cream basing on the Customers income, age and status.Considering the end-users and sales agents/retailers needs in mind, Savoy Ice Cream has divided

its market into two segments as shown in Table.

Table

4.1: Savoy

Ice Cream

Companys

Segmentation Pattern


The target market is the grouping of customers to whom the seller specifically aims its marketingefforts. The careful selection and identification of target market is essential for the market

expansion and customers satisfaction. Savoy Ice Cream Company identifies and profiles distinct

groups of buyers who might prefer varying products. It identifies wants and needs of customersand the ability of buyers as a basis of target market.

Savoy sells its product to:

Upper class

Middle class, and

Upper middle class.

4.4.3 Marketing Mix

The Marketing mix for the existing marketing system can be illustrate in terms of 4P;s ofmarketing i.e., (1) Product (2) Price (3) placement or distribution Channel and (4) Promotion.

The marketing mix of Savoy Ice cream factory is discussed bellow:

4.4.3.1 Product

Savoy Ice Cream aims to make its products to fulfill the requirement of its target markets. It triesto position its products differently from other competitor. The Savoy Ice Cream is predicting a

large variety of Ice creams. The width of the product mix is very narrow and consists of only

two-product lines, namely Ice cream and chocolate/flavored milk. The products of each productline are discussed below.

Types of Products Considered Variables

Chocobar, Lolly, Cone, Cup, Liter Box Age

Special liter, Cake, Parlour Ice Cream Age, Income


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Chocobar

Chocobar is one of the largest selling products. Savoy is producing only one category ofChocobar. Total quantity of each Chocobar is 100 milliliters.

Cone

The Ice cream paste is filled in a Cone shaped biscuit. The product is available in two differentflavors i.e. Vanilla and Mango flavor. Quantity of each Cone Ice Cream is 100 milliliters.

Cup

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 invanilla, 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 sellingproduct. 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 aspraline, 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:




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To maximize revenue.

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, SavoyIce Cream follows cost-plus 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 DhakaCity .

Although, the distribution channel network of Savoy Ice Cream is not much wider, as therefrigerated vans and trolley vans are not sufficient as required to maintain a fair distributionnetwork, 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 Creamin 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 theCompany is to remind the customer about the quality and its unique features like continuous

quality assurance, taste and varieties of products.

Setting the Promotion Budget.

Savoy Ice Cream spending in promotion budget is very less than its sales and profit. It follows

almost a flat rate promotion budget each year for the product.

Promotional Tools.

The essential tools for promotion of Savoy Ice Cream are advertising, personal selling, salespromotion and direct selling. These tools are discussed bellow:

Advertisement.


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Advertisement of the product is one of the major tools for promotion with an objective

repeatedly reminding the customers about the product. The message of the advertising is

informative highlighting the features as well as customers benefits of the product. The chosenmedia for these advertisements are TV media, print media like Newspaper and publications,

billboards, roadside signboards etc.

Savoy Ice Cream still now has not under go into a satisfactory advertisement program. In

financial year 1998-99 a TV add film was produced and shown but very infrequently. Behind

this interceptive advertisement program is the rigidity. The main reason behind this effectiveadvertisement program is the rigidity and long-term decision-making procedure by the

Centralized Management and limited budget allocation for advertisement.

Billboards

There are some billboards are displayed in Dhaka cities like Bus Stand at Mirpur,

Jatrabari, Mohakhali and major cities like Chittagong, Khulna etc.

Personal Selling.

Savoy Ice Cream has some salesman in their sales centers. Besides this, it has some trolley van

by which salesman sales their products to the customers.

Sales Promotion.

Management of Savoy Ice Cream Factory insists on sales promotional activities but only a fewsteps have been taken into account due some limitations. As per information sales promotional

tools used by the management are Free sample, poster, sticker and Mina Bazar.

Publicity.

Publicity is another major tool in promotion. The management is going to take some necessary

steps to increase publicity, because the management believes publicity can be a potent tool of

marketing communication for Savoy Ice Cream.

Commission/Discount to Distributor and Retailers

Savoy Ice Cream Factory sales their product to retailer and distributor through some established

discount basis.

Milk Vita

5.1 Organizational Overview

In Bangladesh with other agro-activities most of the farmer families possess cows for draftpurposes as well as for producing milk for their own consumption. In the year 1972, soon after


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the independence, the government of the Peoples Republic of Bangladesh initiated a project for

the well being of poor milk producing farmers.

The project envisaged the purchase of milk from the individual poor, marginal and landless milk

producing farmers under the fold of Primary Milk Producers Co-operative Societies with fair

price and guaranteed market, transportation of the collected milk to the rural plants for thepreliminary processing and further transportation of the milk to the production plants for final

processing of market milk and milk products with brand name MILKVITA.

5.2 SWOT Analysis

A Companys Strengths, Weaknesses, Opportunities and Threats can be determined by SWOTanalysis. SWOT analysis of Milk Vita is discussed below:

5.2.1 Strengths

The strengths of Milk Vita:

Goodwill of Milk Vita.

Only dairy ice cream of Bangladesh.


Low price.

Product quality.

Sound management.

5.2.2 Weaknesses

The weaknesses are:


As it is a government organization, ministry can take every decision but the company

management cant take any decision.

Company can not 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


Demand of ice cream is very high and it is growing.


5.2.4 Threats


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The threats are:


Uncontrollable situations like bad weather, irregular power supply, political violence,

flood etc.

High cost involvement for automatic plant. Rapid change of customers choice.

Easy entry in the market for any supplier.

5.3 Milk Vita Ice CreamAn overview from marketing perspective

5.3.1 Mission

Like other firm Milk Vita Ice Cream Company does not have any mission statement. But it has amission of producing quality milk product to meet the consumers satisfaction.

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.

5.4 Overall Marketing Strategy of Milk Vita Ice Cream Factory

Basing on the market segmentation and determination of target market the organization sets itsproduct, price, placement and promotion strategy.


Milk Vita ice Cream Company does the market segmentation and targeting to decide

which customers it will serve and how. By market segmentation it can increase its sales and

profit.


Milk Vita ice cream designs and produces their Ice Cream basing on the Customers income andarea.

Income

Products of Milk Vita ice cream are mostly consumed by middle class, whose income level is

low.

Area


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In Dhaka City Milk Vita has market in Mirpur and Mohammadpur area. Out side of Dhaka,

specially in the rural areas Milk Vita ice cream has good market.


The target market is the grouping of customers to whom the seller specifically aims its marketingefforts. 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 controldepartment. Milk Vita has seven types of ice cream.

5.4.2.2 Price

Pricing objectives of Milk Vita Ice Cream:



5.4.2.3 Place(Distribution Channel)

Advertisement in the billboards in some public places.

Infrequent TV advertisement.

6.1 Industry analysis

It is difficult to determine the exact market share of various brands, as the actual sales turnoveror the sales quantity is kept as a business secret by individual Firm. So, determination of market

share is on approximate basis. The total market can be divided on several bases. Mainly the

market share of a company is determined (1) Based on Sales Turnover and (2) Based on Annual

consumption of the product. This is because pricing of the product by different Company isdifferent. For the financial year 2004-2005 the market share by each company has been shown in

the figure.


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6.2 Conclusion

Comparing to the market and other industries, Ice Cream industry is a small issue but a placewhere there is a scope to exercise marketing policies in a new and innovative manner. There aremany Ice Cream Factories in 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 withothers. 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.

comparative study on ice cream industry

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