Supply Chain Management

2013Analysis of Supply Chain Management of Ice Cream Industry: Polar Ice Cream

AHSANULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

Assignment onAnalysis of Supply Chain Management of Ice

Cream Industry: Polar Ice Cream

Prepared For:

Mrinal Kanti PaulLecturer

SCHOOL OF BUSINESSAHSANULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

Prepared By:

Zayed Hassan08.01.02.029

Date of Submission: 28th January, 2013

January 28th, 2013

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To,Mrinal Kanti PaulLecturerAhsanullah University of Science and Technology

Subject: Analysis of Supply Chain Management of Ice Cream Industry: Polar Ice Cream

Dear Sir,

With due regards and respect I state that I are very thankful to you as you assigned us this report on ‘‘Analysis of Supply Chain Management of Ice Cream Industry: Polar Ice Cream”.

We believe that this assignment has given us a vast opportunity to enrich both of knowledge and experience. We made our best effort to fulfill the objective of the report and believe that it will meet your expectation.

In preparing this report I have tried almost to include all the relevant information and analysis to make the report comprehensive as Ill as workable one.

We, therefore, hope that you will enjoy reviewing this report.

Sincerely,

- Zayed Hassan08.01.02.029

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Acknowledgement

At first, I would like to thank our almighty Allah who keeps us healthy & sound minded. Secondly, I would like to thank to our respected teacher Mrinal Kanti Paul, the lecturer of school of business of Ahsanullah University of science and technology who has given us the basic knowledge on the topic, including the relevant knowledge about how to prepare a report.

Last but not least, I wish to avail our self of this opportunity, express a sense of gratitude and love to our friends and beloved parents for their manual support, strength, and help for everything.

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EXECUTIVE SUMMARY

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. Polar’s range extends to a wide range of coated ice creams, cup ice creams, stick ice creams and ice lollies in an array of delicious flavors and tastes. 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.

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Table of Contents

S. No.

Content Page No.

1Introduction:

Contains brief explanation about the report concept and its origin

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2

Retailing in Bangladesh:Contains overview of current retailing market system

prevailing in Bangladesh along with the leader and other competitor’s market share’s overview.

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3Conclusion:

Contains how this expansion was made possible and what ought to be done in order to hold the current progress.

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4 BIBLIOGRAPHY:Contains the sources of the report

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Introduction

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. Polar’s range extends to a wide range of coated ice creams, cup ice creams, stick ice creams and ice lollies in an array of delicious flavors and tastes. 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.

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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.

Polar’s range extends to a wide range of coated ice creams, cup ice creams, stick ice creams and ice lollies in an array of delicious flavours and tastes.

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.

The consumer’s happiness is our happiness.

Company Profile

Company Name: Dhaka Ice Cream Industries limited.

Business Type: Manufacturer

Product/Service: Ice Cream

Address: Dhaka Ice Cream Industries Limited 80,

Shaheed Tajuddin Ahmad Sarani,

Tejgaon I/A, Dhaka-1208, Bangladesh.

Number of Employees: The number of employees in Head Office more than 65.

Company Website URL:

http://www.polarbd.com Year

Established: 1987

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Ownership Type: Individual (Sole

proprietorship) Main customer: Local

customer in Bangladesh.

Our Mission

To become a unique organizaton by producing and selling quality products through continuous improvement and add value to the stakeholders.

Our Values

Value for Customer

Customer satisfaction through premium quality products and services at a competitive price.

Suppliers:

Suppliers of Polar Ice Cream provides for items ranging simple nuts coatings, and other basic raw materials to high tech ice cream processing machines. Almost all ingredients are supplied by foreign suppliers. The main ingredients such as milk powder, nuts, chocolates, sticks, tetra packs, various essences and flavors are imported from Australia, New Zealand, Europe etc. Machines are imported from Denmark, Italy and Switzerland. An important note on suppliers is made here by the Polar’s Marketing Manager. According to him, local suppliers are far less reliable than foreign suppliers both in terms of quality of goods and the kind of services they provide. Foreign suppliers are more reliable, professional and devoted to commitments. Such is its faith on foreign suppliers that Polar imports all items though it is time consuming and there are costly import related formalities.

Manufacture Process:

The items may be classified as dairy and non-dairy ingredients. The dairy items include sweet cream, frozen cream, plastic cream, unsalted butter, butteroil, whole milk, whole milk powder, condensed whole milk and evaporated milk.

The non-dairy items include sugar (cane sugar, beet sugar and corn sugar), stabilizers (gelatin

or sodium alginate), emulsifiers (glycerol monostearate), flavours (vanilla, chocolate, strawberry,

pineapple, lemon, banana etc), colours (yellow, green, pink depending on the flavours), egg

solids, fruits and nuts (apple, banana, mango, grape, almond, pistachio, cashew, walnut etc.).

1. Blending of the mix ingredients 2. Pasteurization 3. Homogenization 4. Aging the mix

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5. Freezing 6. Packaging 7. Hardening

DISTRIBUTORS:

“Reaching our target consumers in the most efficient and effective way by becoming benchmark supplier in the ice cream industry, within strategic channels in every market place where we do business.” The activation of the distribution channels proceeds from their factory at Tejgaon Industrial area in Dhaka.

After production, ice cream products are stored at the central warehouse of the factory at

a temperature between –30 0 degree to -350 centigrade where it is stored in a Store.

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.

CUSTOMERS:

Being the major source of survival and profit, customers form the most important component

for an organization like Polar. Polar considers customers as being their life-blood of survival

and is taking the maximum innovative efforts that can be utilized for utmost customer’s

satisfaction. Customers here can be segmented to family, kids, teenagers of high end, mid

end and low end of the market. Changes in the number and type of customers’ results in a

dimension of opportunities and threats. Polar operating in such ever-changing world of

tastes and preference pays heed to customers’ choices and their attitudes. They, very

keenly take on customers’ advice, try and amend as well as add new dimension to their

business in order to ensure survival in this highly competitive industry.

COMPETITORS:

One of the most important forces that always keep an organization on guard is its

competitors. Competitors are organizations that produce similar goods. In the context of

Polar, Igloo, Kwality, Savoy, Milk Vita and others can be held as competitors. In terms of

their parlors Moven-pick, Baskin Robbins, and Club Geleto are their competitors. But

surprisingly, the marketing management of Polar Ice Cream views these local brands as

mere participants in the same industry rather than as competitors.

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LOGISTICS:

- Temperature and quality control of incoming goods; - Shelf life control for incoming and kept in goods; - Goods rotation principals according to client’s wish; - All kinds of handling operations - Providing reports about kept products, their shelf life and products’ rotation - Veterinary and dispatch services; - Clients representatives placement at storage

Food Safety & Quality Policy

Dhaka Ice Cream Industries Limited is a BIG family. And we are its proud members. Our motto is to uphold the superior image of the company among its valued consumers. To maintain the highest possible consumer satisfaction, we the members of Dhaka Ice Cream Industries Limited are committed to deliver most hygienically produced Polar Ice Cream at affordable price.

Polar Ice Cream is the first ISO 22000:2005 certified company in FMCG category in Bangladesh.

We shall always comply with the statutory and regulatory requirements through continual improvement of Food Safety Management Systems (FSMS) and Teamwork.

Polar Ice Cream is the first ISO 22000:2005 certified company in FMCG category in Bangladesh.

Different forms of Advertisements:

Newspaper coverage comprises of the total publicity expenses, which includes advertisement displayed in papers such as Daily Star, Prothom Alo, Kaler Kantho, Nayadiganta and etc.

They also need to note that ads on specific themes are created for special occasions. Polar Ice Cream has especially used TV commercial to attract their desired customer for buying their product.

Other forms of advertising media including radio and other sources like sponsor a specific social social program.

SWOT ANALYSIS

STRENGTHS

Polar Ice Cream strengths are its ability to develop specifiable and empirically applicable corporate, business and functional level strategies and adapting effective measures, which enables them to secure a strong brand reputation.

WEAKNESS

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The major weaknesses of Polar Ice Cream comprises of Incurrence of high-level expenses in the Research and Development(R&D) sector. High operating and maintenance expenses resulting from the large size of the business. Excessive reliance on foreign suppliers.

OPPORTUNITIES

The best performing company will be the one that can generate the greatest customer value and sustain it.

1. Widening the product range. 2. Seeking faster market growth. 3. Exploiting new market segments.

THREATS

Polar Ice Cream classifies its threats according to their seriousness and probability of occurrence. Hence, threats can be viewed as challenges posed by unfavorable trends or developments that would lead, in the absence of defensive marketing action, to deterioration in sales or profits. The major threats for Polar Ice Cream identify:

Increase in domestic competition – Threats can come in the form of competitors, but according to Polar Ice Cream, they do not view other ice cream companies as their competitors but as mere counterparts.

Recommendations

Competitors are an important component of the task environment. Polar Ice Cream

should pay heed to its potential competitors rather than treating them as mere

counterparts.

Polar Ice Cream should involve in backward vertical integration to lower the costs of value creation and lessen its reliance on foreign suppliers. For instance, incidence

such as 11th September may hinder the flow of supplies in the production process when there is excessive dependence on foreign inputs.

Conclusions

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

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has been able to ensure marketing excellence and enhance its competitiveness.

References:

www.google.com www.polarbd.com Personal interview

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