Assignment

Of

MARKETING

On

ICE CREAM®

Submitted To:

MADAM SUMAIRA

Submitted By:

GHAYOOR YOUSAF

MBA, 1st Semester, Roll No. 7

Institute Of Computer & Management Sciences PESHAWAR.

Company profile:

Name: Ice Age

The Healthy Ice Cream Parlor

Date of Launch: 1st June 2009

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

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

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

Founded in N.W.F.P, Peshawar, Ice Age Ltd.. company is setting up an Ice Cream manufacturing and selling parlor. The project will have great significance in the present day context of increasing weight and illness among the youth as well as adults due to increasing fat and sugar intake due to increasing content of sweetener in the Ice Creams and juices.

The manufacturing of all types of ice creams will be done at its production site and then will be transported to its parlors established in the heart of the city. Ice Age Ltd.. is entering the Pakistan 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 Ltd.. has kept into account the income and behavioral factor of the Pakistan buyers while designing the products. It is important for the company to understand the consumer behaviour before it goes into such a market. The Pakistani consumer for the first time will have a premium product which is eco-friendly, healthy and affordable.

Product Market

Differentiation

Target Market

Consumer Mindset

Segmentation

Marketing Mix

Product Launch

The Model used for preparing the marketing strategy by Ice Age Ltd.. in the Peshawar Market

The first growth vector will involves gaining penetration with the

existing product-market Ice Age Ltd. will attempt to attract

customers from competitors through its strategic positioning and

will establish strong brand equity.

The second growth vector will involves product expansion while

staying in the current market. Ice Age Ltd. will then offer a new

product. It will be aimed not only for the existing market but also

for the price conscious segment.

The third growth vector will apply the same products to the new

markets.

The fourth growth vector will be to diversify into new product

markets. We shall concentrate on the second growth vector and

study the strategy with respect to the Ice Cream market.

The consumers always have a different loyalty status for

different brands. Sometimes they buy some brand due to the

price or sometimes due to the features. Studying the

consumer’s mindset is of vital importance as perception of

individuals at the buying stage of various brands is

unpredictable and ever changing.

The

concept is to make the product different from those of its

competitor. When we look at the Peshawar Ice Cream market we

see that the leader’s naturals have constantly maintained its

market leadership by constantly differentiating on the basis of

new flavors.

And coming up with line extensions with regular frequency. The

only alternative for Ice Age Ltd. to survive in this industry will be

to differentiate itself. This differentiation could be on the basis of

the marketing mix. (Product, Price, Promotion, Place) Thus, as per

the different factors of marketing mix 4 Different strategies are

made to market in the developing cities in Pakistan.

“Ice Age” – 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 as well as youth and people who suffer

from illness like diabetes.

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

Due to the variety of flavors and the specialty of being sugar free and fat free makes the Ice Age Ice Creams more popular among the fitness and health conscious people.

Ice Age targets the market where people are ready to buy healthy junk food due to their taste buds and the fact that Ice Age Ice Creams are totally fat free and sugar free with the same original taste.

Hence Ice Age Ice Creams targets the market where people from age group 1 year to 80 years can enjoy their favorite ice cream keeping in mind health conscious people, diabetic people, young people, etc…

Segmentation variables

Several variables differentiate consumers who prefer different kinds of

Desserts, 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.

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. There are also certain people who have high metabolisms or engage in strenuous activity, leaving them with less worry about weight gain. Frequent or “heavy” users of frozen desserts would a great target, but this group is not readily identifiable and reachable—these consumers are not likely to have distinct media habits or to frequent particular stores, for

example. Serving size preference is an important issue, but is addressed already to some extent by price sensitivity.

Ice Age Ltd… introduces Ice Age Ice Creams – The Healthy Ice Cream Parlor which brings to you a new generation of ice creams.

There are many choices in today’s ice cream case to suit a wide variety of consumers taste. There is plenty of information on food labels, but what does it really mean? Where Ice Age does stands??

Ice cream is a frozen food made from a mixture of dairy products, containing at least 10% milk fat.

"Reduced fat" ice cream contains at least 25% less total fat than the referenced product (either an average of leading brands, or the company's own brand.)

"Light" ice cream contains at least 50% less total fat or 33% fewer calories than the referenced product (the average of leading regional or national brands.)

"Low fat" ice cream contains a maximum of 3 grams of total fat per serving

"Nonfat" ice cream contains less than 0.5 grams of total fat per serving.

Introduction of new product in the market

Completely fat free ice cream

98.99% sugar free ice cream

Eco-friendly

Healthy

Zero side effects

Ice creams for all age groups

Total health conscious product

Blend to suite the taste buds with health in mind

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

More than 30 different flavors to choose from

Same taste

Ice Age Ltd… will be establishing its marketing throughout Peshawar. Ice Age ice creams being an entirely new product in the market will initially operate only in Peshawar till further expansion.

Ice Age ice creams being fat free and sugar free requires some extra indegrients and products which increases the cost of the ice cream by 15 – 20 %. The segmentation of Ice Age ice creams is done on the basics of “Demographic segmentation” and “psychographic segmentation”. Keeping this segmentation in mind the management has taken steps to open its shops at the following places in Peshawar:

Saddar Cantt

Shami Road

Kissa Khawani Bazar

Deans Shopping Mall

Avon Super StoreThe main production of all the products will be done at the main unit based at “Indusrtial Area Hayatabad” and then will be transported to all its shops at different places all over Peshawar.

Push promotion strategy involves getting the retailers/dealers to vouch for your product by giving them larger profit margins and giving them incentives for the number of sales of your product

that are made from their shops/showrooms.

Pull promotion strategy involves promoting your product on a very large scale and making it visible on the market, thus raising

the customers curiosity about the product and hence inducing them to buy it.

We will give all the retailers/direct-dealers a good profit margin

than our competitors are providing them but not at the initial

stage because we are focusing to attract our target market using

diversified means of promotions and advanced technology to our

customers at reasonable price. We will also give them incentives

for vouching for our product at a later stage as we settle down in

the market. Hence we have decided not to go for push promotion

strategy at present but instead we have decided to go for pull

promotion strategy.

Television advertisements: Advertisements to promote and

market our product will be shown on leading television channels.

Major music and family channels will promote Ice Age Ice Creams

as they will reach out to the youth as well as all age groups. Geo

Tv, Ary Digital,The Music and Aaj Tv etc will be our main

promoters.

Radio is the medium with the widest coverage. Studies have

recently shown high levels of exposure to radio broadcasting both

within urban and rural areas, whether or not listeners actually

own a set. Many people listen to other people's radios or hear

them in public places. So radio announcements will be made and

advertisements will be announced on the radio about the product

features and price, qualities, etc.

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.

Workshops and seminars: Workshops and seminars will be held in

colleges to make people aware about the company and product

features, its affordability and vast distribution network.

Banners, neon signs: Hoardings, banners, neon signs will be

displayed at clubs, discs, outside theatres and shops to promote

our range of flavors.

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.

The pricing strategy adopted by Ice Age Ltd. for its two

wheeler electronic bikes is PENETRATION PRICING

because it is a total new brand, which is entering a

market, which is already facing immense competition.

And breaking this competition and attracting new

requires quality product at low price. Hence our product

will be priced low which will be economical and will

encourage new buyers. Hence we have adopted the

penetration pricing method for capturing market share

and establishing ourselves in the market.

After considering all the factors i.e. cost of production,

transportation cost, store charges, etc… and after

analyzing this data the finance manger Mr. Rana coated

the price list according to the material requirement of the

product and the making charges with considering all

other of the store also.

According to Mr. Rana the cost of per scoop of ice cream

will Rs. 35 which would earn the company a profit of 20%

on cost.

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.

Ice Age Ltd… being one of its kinds, having a variety of ranges in sugar free and fat free ice creams, the management decided to launch such a unique product in the heart of the Peshawar City: Saddar Bazar .

Since the first manufacturing and selling unit of the company is set up and functioning in Peshawar, the product launch was also held in Peshawar.

The launch of Ice Age Ice Creams Parlor was given to Fountain Head Promotion and Event Pvt.Ltd… The launch was held at “Industrial Area Hayatabad Peshawar on 20th May 2009.

To promote our product in an entirely new market and since our product is entirely a new concept in the market So 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 lollywood 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.

In today’s world of ice creams, Naturals, Baskin and Robbins, Gelato, etc… are the leading ice cream parlors in Peshawar. Their combined sale figures through-out the month is about 1,50,000 units. Their advertising strategies, sales promotions, offers, etc… are not on a continuous stretch because these parlors are in the market for sometimes……

Ice Age ice creams being on a starting stage, will have a good advertising strategies, sales promotions, offers to attract more customers and to make them more familiar to our brand. Due to our new technique of production and distribution, even after entering the market on platform 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 around 50,000 to 60,000 units per month.

Due to our special fat free and sugar free ice creams all age groups will be able to enjoy the same old taste of ice creams but with a dash of health.