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    MARKETING MANAGEMENT

    Submitted to

    Mr. Jaffery

    Submitted by

    Sana Javed

    Neheh Ali Mir

    Khadija NaumanMehwish Jabeen

    M.B.A. III -09

    Date 10th December, 09

    The Evolution of Ice Cream

    Business Plan- Scoopz Ltd.

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    Ice cream's origins are not known to reach back as far as the second century B.C., although no

    specific date of origin nor has inventor been undisputable credited with its discovery. During the

    Roman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners into the mountains

    for snow, which was then flavored with fruits and juices.

    Over a thousand years later, Marco Polo returned to Italy from the Far East with a recipe that

    closely resembled what is now called sherbet. Historians estimate that this recipe evolved into

    ice cream sometime in the 16 th century. England seems to have discovered ice cream at the same

    time, or perhaps even earlier than the Italians. "Cream Ice," as it was called, appeared regularly

    at the table of Charles I during the 17 th century. France was introduced to similar frozen desserts

    in 1553 by the Italian Catherine de Medici when she became the wife of Henry II of France. It

    wasn't until 1660 that ice cream was made available to the general public. The Sicilian Procopeintroduced a recipe blending milk, cream, butter and eggs at Caf Procope, the first cafe in Paris.

    Until 1800, ice cream remained a rare and exotic dessert enjoyed mostly by the elite.

    Wide availability of ice cream in the late 19 th century led to new creations. In 1874, the

    American soda fountain shop and the profession of the "soda jerk" emerged with the invention of

    the ice cream soda. In response to religious criticism for eating "sinfully" rich ice cream sodas on

    Sundays, ice cream merchants left out the carbonated water and invented the ice cream "Sunday"in the late 1890's. The name was eventually changed to "sundae" to remove any connection with

    the Sabbath.

    The next ice cream craze with the 1904 Louisiana Purchase Exposition in Saint Louis. Charles

    Menches was doing a lively business selling scoops of ice cream in dishes, all the way up to the

    point that he ran out of dishes. Frustrated, but determined to still find a way to make a profit, he

    lighted upon his friend Ernest Hamwi, who was selling a wafer-like cookie called zalabia (a

    Syrian treat). The combination proved irrestible.

    SCOOPZ

    Business Plan- Scoopz Ltd.

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    COMPANY PROFILE

    The companys name is Scoopz Ltd. It is an ice cream manufacturing company. We are

    providing quality ice cream which is healthy. It is a low calorie product which is sugar free and

    fat free, especially targeting the people who are health conscious and diabetic.

    Mission Statement

    Setting new trends in the creamy world of ice creams.

    Vision Statement

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    INTRODUCTION

    Scoopz Ltd. Company is based in Lahore. It is ice cream manufacturing company and an ice

    cream parlor. These days the content of sweeteners in ice creams is leading to weight and health

    issues among youth and adults. For this reason Ice Age is providing a yummy solution to the

    ever increasing weight problems, thus reducing obesity. For this reason Ice Age will have greater

    significance.

    Manufacturing of all ice creams is done at its production site located on Ferozpur road, which is

    then transported to the parlor located at MM Alam Road. Ice Age Ltd. is entering the Pakistani

    market with an aim of establishing its brand as a necessity of the Pakistani buyers.

    The company will follow a strategic positioning approach for the target market. Ice Age. has

    kept into account the income and behavioral factor of the Pakistani buyers while designing the

    products. It is important for the company to understand the consumer behavior before it goes

    into such a market. Pakistani consumer will for the first time enjoy low calorie, healthy and

    affordable ice cream in a variety of different flavors.

    BUSINESS STRATEGY

    The most important factor for success of Scoopz Ltd. brand is perception of the consumer and to

    what extent it can build a positive image in the consumers mind. The intensity of the business

    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 competent strategy for the Pakistani market

    since it is composed of quality buyers as well as those who will buy for their family.

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    Product Market Expansion Strategy:

    Product Market Expansion Grid

    Product

    Markets

    Penetration Product expansion

    Market expansion Diversification

    The first growth vector involves gaining penetration with the existing product-market. Scoopz

    attempts to attract customers from competitors through its strategic positioning and will establish

    strong brand equity.

    The second growth vector involves product expansion while staying in the current market.

    Scoopz is offering a new product. It is aimed not only for the existing market but also for the

    price conscious segment.

    The third growth vector applies the same products to the new markets.

    The fourth growth vector is 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.

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    Differentiation Strategy

    Concept is to make the product different from those of its competitor. When we look at the

    Pakistani Ice Cream market we see that the leaders Walls have constantly maintained its marketleadership by constantly differentiating on the basis of new flavors.

    We will be coming up with line extensions with regular frequency. The only alternative for

    Scoopz to survive in this industry will be to differentiate itself. This differentiation could be on

    the basis of the marketing mix. Product, Promotion, Place.

    INTERNAL ANALYSIS

    According to the recent studies, most of the newly launched product or services fail due to

    improper analysis of their internal and external needs.

    A company should most effectively and efficiently take care of all the internal matters and

    needs.

    Since internal analysis is important and pricing is depended upon this analysis, Scoopz has taken

    proper and fully effective steps in analyzing 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

    Work force

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    Capital

    Working capital

    Internal rules and regulations

    Proper management

    Proper material handling

    EXTERNAL ANALYSIS

    CUSTOMER ANALYSIS

    The Pakistani market with its vast size and demand base offers great opportunities to marketers.

    People is Pakistan especially Lahore are very fond of eating rich and heavy food with proper

    starters, main course and desserts. People have been spending a lot on dinning out and having a

    fun place to go to. Late night outings and youth gatherings are very common trend in new

    generation. People have craze to dig out new hang out places for fun and a unforgettable

    experiences.

    Thus Scoopz has decided to enter this market with the basic idea of tapping the upper middle

    class which had established itself as a huge tapped market in the perception of a lot of national

    and multinational players who were then trying for ages into the mature market.

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    COMPETITORS ANALYSIS

    Direct Competitors sssssAll the ice cream parlors are direct competitors of Scoopz including;

    Ice Berg

    Yummys 36

    Gelato affairs

    Hot spot

    Walls Spin bar

    Hobnob

    Marble stones

    INDIRECT COMPETITORS

    Indirect competitors includes

    Walls

    Omore

    Chaman ice cream

    Gourmet ice cream

    Traditional kulfa and faloda

    All the cafs and bakery shops

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    NEED OF COMPARISION

    Consumer Mindset

    We have to find out why the customer is going to the competitors. Is it because of the price,

    quality, flavor, availability, location or ambience? They always have a different loyalty status

    for different brands. 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 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 andpromotional share needs to be studied. Thus, market share 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.

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    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 anoverall analysis of all the major companies

    Strengths

    Catering niche market

    No side effects

    Less consumption of sugar

    Less consumption of fats

    Reduces chances of illness like diabetes

    Useful for health conscious people

    Taste with health

    Variety of flavors

    Weaknesses

    Misconception about low calorie ice cream

    Less awareness among people regarding the product

    Heavy budget has to be allocated for promotion

    Opportunities

    Introduction of new flavors

    Easy in achieving break even point

    Prices can be reduced in short run

    New product line ( ice cream cakes, bake alaska, ice cream shakes,cold coffee etc)

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    Threats

    Lot of competition from existing Ice Cream parlors and ice cream manufacturers

    Unstable economic conditions

    Terrorism

    ENVIRONMENTAL ANALYSIS

    High initial launch cost

    There is a large front-ended investment made in new products including cost of product

    development, market research, test marketing and most importantly its launch. To create

    awareness and develop franchise for a new brand requires enormous initial expenditure, free

    samples and product promotions. Launch costs are as high as 50-100% of revenue in the first

    year and these costs progressively reduce as the brand matures, gains consumer acceptance and

    turnover 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 keep on

    changing with fashion, income and changes in lifestyle. Unlike industrial products, it is difficult

    to differentiate products on technical or functional grounds. With increasing competition,

    companies spend enormous sums on product launches. Market research and test marketing

    become inevitable. The business rests on the two aspects that are brand equity and distribution

    network.

    Brand equity

    The consumer's loyalty for a particular brand is due to the perception that the product has

    distinctively superior and consistent quality, satisfies his/ her specific needs and provides better

    value for money than other competing brands. We have to position our brand in the minds of the

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    TARGET MARKET

    Scoopz the healthy ice cream parlor offers a wide range of sugar free and fat free ice

    creams. The ice creams are specially made keeping in mind all the health conscious people aswell as youth and people who suffer from illness like diabetes.

    Scoopz is a healthy ice cream parlor which targets the upper middle class and elite class.

    Due to the variety of flavors and the specialty of being sugar free and fat free makes Scoopz Ice

    Creams more popular among the fitness and health conscious people.

    Scoopz targets the market where people are addicted to junk food. Scoopz provides them an

    opportunity to satisfy their cravings while eating a healthy product.

    Hence Scoopz targets the market where people from age group 3 years to 80 years can enjoy

    their favorite ice cream without being conscious about their health issues.

    SEGMENTATION

    Segmentation variables

    Several variables differentiate consumers who prefer different kinds ofDesserts, such as frequency of consumption, price sensitivity, relative importance of calories vs.

    taste, consumption occasion (at home, at work, at a social event, during recreation or at a

    restaurant), and desired serving size. The two most important variables are probably price

    sensitivity and the taste-calorie tradeoff.

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    The reason that price sensitivity is especially important is that some consumers will pay high

    prices for a product of high quality. Therefore, one might be able to make large margins selling

    to that market. On the other hand, there is a large market that will not buy desserts that are priced

    too high; therefore, some of the manufacturers will want to provide value-priced frozen desserts

    that may sacrifice quality somewhat. Consumers today tend to be increasingly health conscious,

    and many will therefore want to limit the amount of calories in the desserts they consume. On

    the other hand, desserts are consumed for pleasure, and other consumers are unwilling to

    sacrifice the taste provided by calorie-rich desserts. Serving size preference is an important issue,

    but is addressed already to some extent by price sensitivity.

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    MARKETING MIX

    PRODUCT

    Scoopz is a healthy ice cream parlor which brings to you a new generation of ice creams. Scoopz

    is offering a wide range of low fat ice creams. Low fat ice creams contain only 3 grams of total

    fat per serving. It is very beneficial for diabetics and people who wish to live a healthy life by

    controlling their intake of fats and calories. Young people these days are becoming more diet

    conscious, Scoopz is providing the right product for them.

    Ice creams are made with skimmed milk, low fat cream, low fat yogurt and fruit sugar is used as

    a substitute for regular cream and sugar. For some flavors artificial sweeteners are used to

    maintain sweetness. Natural fruits are used as chunks and flavoring.

    Other than ice creams, Scoopz is also providing a unique experience with its aesthetically

    designed outlet. Exterior of the ice cream parlor is made in a standing penguin. The sitting

    arrangement is in spiral form of three floors with a huge aquarium serving as a pillar for the

    three floors. This unique idea of a huge penguin is definitely worth experiencing.

    Scoopz is offering a variety of flavors. Available flavors at Scoopz are:

    Traditional vanilla

    Mild chocolate

    Dark chocolate

    Nutty fudge

    Chocolate fudge

    Pistacio

    Peach Mint chocolate

    Nutty chunk

    Crunch

    Caramel and dates

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    Mango

    Banana boat

    Chocolate oreo

    Strawberry Tutty fruity

    Pineapple

    Scoopz ice cream is healthy and has no side effects as it is made from natural products and no

    preservatives are added. Ice cream is a delight which is enjoyed in all seasons by all age groups.

    Many people have a misconception about sugar free or fat free ice creams that they are not very

    good in taste, but Scoopz is just like the normal ice creams available in the market. It is

    especially developed with carefully researched recipes to develop the same taste as for full

    cream ice creams.

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    PRICE

    We have used a combination of perceived value pricing strategy and markup pricing strategy.

    Because we want to in cash the image which is built in the minds of the consumers due to the

    health, low calorie and high quality associated with the product provided in a very attractive and

    clean environment.

    Price is set at Rs.75 per scoop and u can take as many scoops u wish

    After deep research and market survey it was found out that the company will meet its break

    even point of production within 1 year of its expected sales of 50000 units per month.

    The total investment on our project is Rs.1,062,000 Which comprises of our shared equity and

    loans from some banks. Along with our shared equity, we have taken a loan of Rs.10,620,000

    from MCB and NBP. These are only banks which are profitable these days and they are charging

    a low interest rate on it.

    Financial Plan

    Project Fixed Cost (In Rupees)

    Land Already Available

    Building 12, 000,000

    Machinery 10,000,000

    Transportation/Installation 150,000

    Furniture 1,500,000

    Vehicles 20,000,000

    Total Fixed cost 151,515,000

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    Total Cost of Production

    Cost Of Goods Sold (In Rupees)

    Raw Material 600,000

    Wages/Salaries 150,000

    Utilities 150,000

    Depreciation 120,000

    Total 1,020,000

    Operating cost (In Rupees)

    Administrative expanses 60,000

    Selling expanses 1,20,000

    Office expanses 60,000

    Total 4,52,000

    Financing plan (In Rupees)

    Loan 10,620,000

    Equity 7,000,000

    Total 17,620,000

    Financial charges (In Rupees)

    Rate interest 15%

    Term loan 17,620,000 *15% = 264,330

    Other bank charges 17,620,000 * 1% = 176,200

    Total 202,530

    Sources of machinery

    The selection of machinery and equipments is one of the important decision, there are number of

    Machinery Manufacturers but for this project the required machinery is locally available.

    Breakeven Analysis

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    Breakeven analysis is a tool used to determine when a business will be able to cover all its

    expenses and begin to make a profit. For the startup business it is extremely important to know

    the startup costs, which provides with the information one need to generate enough sales revenue

    to pay the ongoing expenses related to running the business.

    The graphic method of analysis helps in understanding the concept of the break-even point.

    However, the break-even point is found faster and more accurately with the following formula:

    Q = FC / (UP - VC)

    where:

    Q = Break-even Point, i.e., Units of production (Q),

    FC = Fixed Costs,

    VC = Variable Costs per Unit

    UP = Unit Price

    Break-Even Point

    It is based on figures for first year, the calculation is as under:

    Break-Even Point, Q = Fixed Cost / (Unit Price - Variable Unit Cost)

    Break even point = 300,000 units/ scoops

    The expected break even period for the company is approximately 3 years.

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    PLACE

    Scoopz Ltd will be establishing its business throughout Lahore but being an entirely new product

    in the market will initially operate only on M.M.Alam Road till further expansion.

    The purpose of opening our very first branch on M.M.Alam Road is that, nowadays, this road is

    the centre of attraction for the lahori peoplemost of the well known restaurants and even one

    of our competitors (marble stones) is situated in this streetalso this road has become a status

    symbol and so choosing this location will enhance our brand image as well.

    We are going to use a simple indirect distribution channel

    MANUFACTURER DISTRIBUTOR RETAILER

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    The main production of all the products will be done at our own main unit based in Ferozpur

    Road and then will be transported to the retail outlet on M.M.Alam Road, Lahore through our

    own delivery vans.

    PROMOTION

    We are not only promoting our product we are promoting the experience with it. we are going to

    sell the concept and the confidence that our product is the most reliable and our consumers can

    trust us for providing them the best quality in a hygienic environment.

    Tools of Advertisement

    1 Television advertisements: Advertisements to promote and market our product will be

    shown on leading television channels. Major music and family channels will promote

    Scoopz Ice Creams as they will reach out to the youth as well as all age groups. Aag,

    Geo, Ary, Mtv Pakistan and Indus vision etc will be our main promoters.

    Our ads would be animated using the icon penguin as our subject.

    2 Radio is the medium with the widest coverage. Studies have recently shown high levels

    of exposure to radio broadcasting among our youth and it has a low cost but a fast way of

    delivering a message.

    3 Print Ads: Daily advertisements in leading newspapers and magazines will be used to

    promote the product. Leaflets at the initial stage will be distributed at railway stations,

    malls, college areas and various other locations.

    4 Banners, neon signs: Hoardings, banners, neon signs will be displayed at clubs, discs,

    outside theatres and shops to promote our range of flavors.

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    5 Booklets and pamphlets: Booklets will be kept at ice cream parlors for the customer to

    read. These booklets will provide information about our company; the products offered

    which suits the customers need according to their taste.

    Sales Promotion

    Apart from different advertising tools we are going to offer some interactive schemes for the

    consumers will also be introduced which will make them feel as a part of Scoopz. e.g we can

    ask them what other flavors they would like to have or which ones should be improved.

    They can also be asked to suggest different combinations and given prizes on the best

    suggestion.

    Similarly they could also be asked to suggest names for some of the flavors and a prize could be

    given to the selected one. These prizes needn't be very big just tokens to remind them that we

    take our customers as our family.

    Sampling would also be used to increase the sales of our products. We will target the shopping

    malls like Pace, Mall of Lahore, City Towers etc to carry out our sampling.

    Budget Allocation

    We have allocated a budget of 7 crore for the promotion and a major portion of it would be

    invested in TV ads and having a brand ambassador, which will account for almost 50 % of our

    total budget.

    We will invest about 10 % in radio ads and another 10% in print media. 20% can be invested in

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    sampling and the remaining 10% can be invested in making interactive schemes for customers.

    Product Launch

    We decided to launch the Soopz ice cream parlor in Lahore because people are more willing to

    accept new concepts here as compared to other cities.

    To promote our product which is entirely a new concept in the market we arranged an excellent

    guest list. The guests invited on the launch were basically top role models, ramp models, best

    doctors who promote healthy eating, film stars, high profile diabetations, health conscious

    people on small as well as big screen of Bollywood and top gym owners.

    All the guests were asked their opinions on the new concept of healthy eating. Their opinion was

    a treasure for our company which would be help full during further expansion and customer

    satisfaction.

    Future Plans

    Scoopz is an entirely new concept in the segment of frozen deserts; because of this reason the

    management has decided that currently there would only be 1 outlet of the company's ice cream

    parlor in Lahore. As the company progresses in 2-3 years the management has lots of plans

    about the future expansion of the healthy eating concept through-out state, through-out the

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    country and then through-out the world.

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    CONCLUSION

    In todays world of ice creams, Hot Spot, Marble Stones and Gelato, etc are the leading ice

    cream parlors in Lahore. Their combined sale figures through-out the month is about 150,000

    units. Their advertising strategies, sales promotions, offers, etc are not on a continuous stretch

    because these parlors are in the market for sometime.

    Scoopz ice creams being on a starting stage will have good advertising strategies, sales

    promotions and offers to attract more customers and to make them more familiar to our brand.

    Due to our new technique of production and new concept, even after entering the market onplatform basis and investing more on the special inputs our cost nearly 15% more than the cost

    of our competitors, but with the concept of healthy eating we accept our sales to be more than

    our competitors.

    Due to our special fat free and sugar free ice creams all age groups will be able to enjoy the same

    old taste of ice creams but with a dash of health.