Marketing Strategies of Dhaka Ice Cream Industries Limited

Marketing Strategies of Dhaka Ice Cream Industries LimitedPage10

TEAM TULIP

Chapter1INTRODUCTION

1. Introduction1.1 Historical background of Polar Ice CreamThe 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.

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.

1.2 Company ProfileCompany Name: Dhaka Ice Cream Industries limited. Business Type: ManufacturerProduct/Service: Ice CreamAddress: 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.comYear Established: 1987Ownership Type: Individual (Sole proprietorship)Main customer: Local customer in Bangladesh.

1.3 MissionTo become a unique organization by producing and selling quality products through continuous improvement and add value to the stakeholders

1.4 ObjectiveThe 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.

1.5 ProductsPolar has a lot of variation in designing its products. Products are basically categorized into main 5 categories.

1. Stick Ice Cream2. Cup Ice Cream3. Cone Ice cream4. Liter Container 5. Ice Cream Cake

All of these categories have different tastes of products. Below is a chart of whole products available in these categories.

Figure 1: Polar Ice Cream Products

Chapter2Segmenting, Targeting & Positioning

2. STP MarketingSTP marketing is a three-step approach to building a targeted marketing plan. The "S" stands for segmenting, the "T" for targeting and the "P" for positioning. Going through this process allows a business owner and marketing consultants or employees to formulate a marketing strategy that ties company, brand and product benefits to specific customer market segments.

Figure 2: STP Process in Marketing

SegmentingThe segmenting step is essentially a brainstorming activity. First to list out all the potential market segments a company could target in a marketing campaign.

TargetingWhen a company has multiple, distinct market segments, they typically need to customize marketing campaigns that appeal to each. Going through the STP process, the company selects which segment to target for upcoming campaign. PositioningPositioning is how a company aligns its brand or products in the target market. The goal is to offer something that is bigger, better or more valuable than your competitors to a particular market segment. ImplementationOnce a company has strategized using the STP process, the next step is to implement all marketing tasks to achieve intended goals. If they want to increase brand awareness within an emerging market, they would design commercials or ads that introduce their brand and develop an image. They may pick media commonly used by that target group. For instance, they would create print, radio, TV, magazine, Internet or other ads that promote their quality or value to customers.

2.1 Market SegmentationTheoretical OverviewMarket segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers.The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle.Factors Affecting Market SegmentationFour basic factors that affect market segmentation are Clear identification of the segment Measurability of its effective size Its accessibility through promotional efforts, and Its appropriateness to the policies and resources of the company.

Requirements of Market SegmentsIn addition to having different needs, for segments to be practical they should be evaluated against the following criteria: Identifiable Accessible Substantial Unique needs DurableA good market segmentation will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments.2.2 Types of Market SegmentationThe four basic market segmentation-strategies are based on (a) behavioral (b) demographic, (c) psychographic, and (d) geographical differences.

Figure 3: Market Segmentation

1. Geographic segmentationThe market is segmented according to geographic criterianations, states, regions, countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific with respect to region; in rainy regions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you can sell warm clothes.The following are some examples of geographic variables often used in segmentation. Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions

2. Demographic SegmentationDemographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. As one might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process.Some demographic segmentation variables include: Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion Social class

3. Psychographic SegmentationPsychographics is the science of using psychology and demographics to better understand consumers. Psychographic segmentation: Consumers are divided according to their lifestyle, personality, values. Aliens within the same demographic group can exhibit very different psychographic profiles.Some psychographic variables include: Activities Interests Opinions Attitudes Values

4. Behavioral SegmentationIn behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer.Some behavioristic variables include: Benefits sought Usage rate Brand loyalty User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases

2.3 Market Segmentation of Polar Ice CreamPolar Ice Cream follows below demographical segmentation: The factors, which have been considered for segmenting, are(1) Age (2) Family Size(3) Income(4) Social ClassConsidering the end-users and sales agents/retailers needs in mind, Polar Ice Cream has divided its market into segments as shown in Table.Considered VariablesSegmentationTypes of Products

Age GroupBabyAdult Baby Ice CreamsAll Other Ice Creams

Family SizeSmallLargeStick, Cup & Cone Ice CreamLiter Container, Cake Ice Cream

IncomeLowMediumHighStickStick, Cup, Cone, Liter ContainerCone, Liter Container, Cake Ice Cream

Social ClassStudentsFamilyCorporateStick, Cup, ConeLiter Container, Cake Ice CreamLiter Container, Cake Ice Cream

Table 1: Market Segmentation of Polar Ice Cream

2.4 Target Market: Theoretical BackgroundA target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.2.5 Market Targeting Market targeting is the process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond. Factors in consideration to select Target Strategy: 1. Company resources2. Product variability3. Products stage in the life cycle 4. Market variability5. Competitors marketing strategy

2.6 Targeting ApproachThere are different kinds of targeting approaches and each marketing firm has its own unique way of targeting its customers. These targeting approaches are simply divided into four kinds viz. 1. Undifferentiated or Mass Marketing2. Differentiated or Segmented Marketing3. Concentrated or Niche Marketing4. Micro or Local Marketing

Targeting BroadlyTargeting NarrowlyUndifferentiated or Mass Marketing

Differentiated or Segmented Marketing

Concentrated or Niche Marketing

Micro or Local Marketing

Figure 4: Market Targeting ApproachAll the targeting approaches are described below: 1. Undifferentiated Marketing: Undifferentiated marketing refers to an approach when a firm produces only one product or product line and targets all of its customers with a single marketing mix. The other term used for this approach is mass marketing. In Mass Marketing, the market coverage strategy essentially ignores the market segment differences and goes after the whole market with one offer. This marketing approach attempts to sell through persuading a wide audience. Usually the idea is to broadcast the message with an aim to reach the largest number of people possible. Mass marketing focuses on media coverage such as radio, television and newspapers. The idea is to maximize the exposure to the product. Examples of mass marketing products are toothpastes, which are not made especially for one consumer group or segment and are sold in huge quantities. Other examples are furniture, artwork, automobiles, residential communities, cola drinks and personal computers.2. Differentiated Marketing: The differentiated marketing refers to the approach of the firms, which produce numerous products with different marketing mixes. These products are designed to satisfy the smaller segments. In this approach, instead of marketing one product with a single marketing program the firm approaches the different consumer groups with products customized for each group. Most companies do this for specialization and to remain competitive. The differentiated marketing essentially requires market segmentation and incurs a higher production cost, inventory cost and marketing costs.3. Concentrated marketing: The popular term for concentrated marketing is niche marketing. Another term for the same is "Focused Market". A niche market is a subset of the market on which a specific product is focusing. Each niche market essentially defines specific product features such as product design, price range, production quality and the demographics that is intended to impact. In niche marketing, the firm essentially focuses. Niche marketing chooses a small segment provided it's a profitable segment. This approach is most suitable to smaller firms, which have lesser resources.4. Micromarketing: This is the narrowest approach of targeting. It is most effective technique for small business users to sustain, build and grow their own brand. It targets the potential customer at the very basic and personal level.2.7 Targeting Market: Polar Ice CreamPolars Ice Cream products are not made especially for one consumer group or segment and are sold in huge quantities throughout the whole country including each area under its coverage. And this type of targeting strategy is called Undifferentiated Marketing focusing on all customers available in the market. 2.8 PositioningPositioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. A products position is the way the product is defined by consumers on important attributesthe place the product occupies in consumers minds relative to competing products.Choosing a differentiation and positioning Strategy for productThe differentiation and positioning a task consists of three steps: identifying a set of possible customer value differences that provide competitive advantages upon which to build a position, choosing the right competitive advantages, and selecting an overall positioning strategy. The company must then effectively communicate and deliver the chosen position to the market.2.9 Positioning Strategies1. Identifying possible Competitive AdvantageTo build profitable relationships with target customers, marketers must understand customer needs better than competitors do and deliver more value. To the extent that a company can position itself as providing superior value, it gains competitive advantage. But solid positions cannot be built on empty promises. If a company positions its product as offering the best quality and service, it must then deliver the promised quality and service. Thus, positioning begins with actually differentiating the companys marketing offer so that it will give consumers superior value.Point of Differentiation: 1. Products2. Services3. Channels4. People 5. Image6. Benefits

2. Choosing the Right Competitive AdvantagesAfter discovering several potential differentiations that provide competitive advantages a company must choose the one specific strategy on which it will build its positioning strategy. It must decide how many differences to promote and which ones.

How Many Differences can be promoted: Company should develop a unique selling proposition for each brand & stick to it. Each brand should pick an attribute & tout itself as number one on that attribute. Companies should position themselves on more than one differentiator. Companies should broaden their positioning strategies to appeal to more segments.

Which Differences to Promote: Important: The difference delivers a highly valued benefit to target buyers. Distinctive: Competitors do not offer the difference, or the company can offer it in a more distinctive way. Superior: The difference is superior to other ways that customers might obtain the same benefit. Communicable: The difference is communicable & visible to buyers. Preemptive: Competitors cannot the difference easily. Affordable: Buyers can afford to pay for the difference. Profitable: The Company can introduce the difference profitably.

3. Selecting an Overall Positioning StrategyValue propositions (the whole cluster of benefits the company promises to deliver) represent the full positioning of the brandWinning Value PropositionsLosing Value Propositions

Price

BenefitsMoreSame Less

MoreMore for MoreMore for SameMore for Less

SameUndifferentiatedSame for Less

LessLess for Much Less

Figure 5: Value Proposition

4. Developing Positioning Statement: A statement that summarizes company or brand positioning it takes this form: To(target segment and need) Our(brand) Is(concept) That(point-of-difference)

5. Communicating and Delivering the Chosen PositionOnce company has chosen a position, the company must take strong steps to deliver and communicate the desired position to its target consumers.

Figure 6: Communicating Position Statement

2.10 Positioning of Polar Ice CreamBasing on point of differentiation, effective market segmentation and determination of target market the organization sets its product, price, placement and promotion strategy, which ultimately enable the organization to achieve its goals.

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.

Figure 7: Point of Differentiation of Polar Ice Cream

Positioning Statement of POLAR Ice CreamA statement that summarizes company or brand positioning it takes this form: To(target segment and need) = Consumers Is(concept)= Happiness Our(brand)= Polars That(point-of-difference)= HappinessPosition Statement: The Consumers happiness is our happiness.

Communicating and Delivering the Position Statement

Figure 8: Communicating Position Statement of Polar Ice Cream

Chapter3Products Levels & Product Mix

3.1 ProductProduct is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

3.2 Levels of ProductsConsumers often think that a product is simply the physical item that he or she buys. In order to actively explore the nature of a product further, lets consider it as three different products - the CORE product, the ACTUAL product, and finally the AUGMENTED product. This concept is known as the Three Levels of a Product.

WarrantyProduct SupportDelivery & CreditAfter Sale ServicesBrand NameQuality LevelPackagingDesignFeatures

Figure 9: Levels of Products

1. Core ProductThe CORE product is NOT the tangible physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.2. Actual ProductThe ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual product is what the average person would think of under the generic banner of product.3. Augmented ProductThe AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be converted in to benefits for individuals.

3.3 Product Levels of Polar Ice Cream

1. Core ProductThe core product of the polar is its branded ice creams POLAR.

2. Actual ProductBrand Name: PolarFeatures: Ice Cream with different taste and flavor Proper Extent of Ingredients Used Australian raw materials are used in production European technology used in packaging and distributionDesign or Flavors: Vanilla, Strawberry, Fruity, Doi, Kheer, Pista, Chocolate, Malai, Cake Packaging: Stick, Cup, Cone, Liter Container and Cake Quality Level: Regular and Premium

3. Augmented ProductPolar Provides delivery of their products with their own van and also facilitate their customers with payment flexibility.

3.4 Product MixA product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale.Product mix, also known as product assortment, refers to the total number of product lines that a company offers to its customers. For example, a small company may sell multiple lines of products. The four dimensions to a company's product mix include width, length, depth and consistency.WidthThe width of a company's product mix pertains to the number of product lines that a company sells. For example, if a company has two product lines, its product mix width is two. Small and upstart businesses will usually not have a wide product mix. It is more practical to start with some basic products and build market share. Later on, a company's technology may allow the company to diversify into other industries and build the width of the product mix.LengthProduct mix length pertains to the number of total products or items in a company's product mix, according to Philip Kotler's textbook "Marketing Management: Analysis, Planning, Implementation and Control." For example, ABC company may have two product lines, and five brands within each product line. Thus, ABC's product mix length would be 10. Companies that have multiple product lines will sometimes keep track of their average length per product line. In the above case, the average length of an ABC Company's product line is five.DepthDepth of a product mix pertains to the total number of variations for each product. Variations can include size, flavor and any other distinguishing characteristic. For example, if a company sells three sizes and two flavors of toothpaste, that particular brand of toothpaste has a depth of six. Just like length, companies sometimes report the average depth of their product lines; or the depth of a specific product line.ConsistencyProduct mix consistency pertains to how closely related product lines are to one another--in terms of use, production and distribution. A company's product mix may be consistent in distribution but vastly different in use. For example, a small company may sell its health bars and health magazine in retail stores. However, one product is edible and the other is not. The production consistency of these products would vary as well.

Consistency

Figure 10: Product Mix StrategyProduct Market Mix StrategySmall companies usually start out with a product mix limited in width, depth and length; and have a high level of consistency. However, over time, the company may want to differentiate products or acquire new ones to enter new markets. A company can also sell the existing products to new markets by coming up with new uses for their product.

3.5 Product Mix: Polar Ice CreamWidth: All Ice CreamsLength: Stick, Cone, Cup, Liter Container, Cake Ice CreamDepth: StickCupConeLiter ContainerCake Ice Cream

ChocobarVanillaCarnivalChocolateVanilla Flavored

MalaiMango ChocodelightMangoHeart Shaped

CrunchyStrawberryStrawberry

LollyGooglyVanilla

PenguinCaramelDoi

Cool ShellChocolateKheer

RocksDoiButterbite

MangoKheer

Lemon Pista

Orange

Table 2: Polar Ice Cream DepthConsistency: As all the products are Ice Cream products but with different flavor and taste, besides closely related with each other in nature, it can be said that there is a close consistency among the width, length and depth of Polar Products.

PRODUCT MIX

POLAR ICE CREAMWidth

DepthLength

Figure 11: Polar Ice Cream Product Mix

Chapter4Branding Strategies

4.1 Branding StrategyA branding strategy helps establish a product within the market and to build a brand that will grow and mature in a saturated marketplace. Making smart branding decisions up front is crucial since a company may have to live with the decision for a long time.When a company manages its brands it has a number of strategies it can use to further increase its brand value. There are four strategies of branding as presented below: Line ExtensionNew BrandsMulti BrandsBrand ExtensionExistingNew

NewExistingProduct CategoryBrand Name

Figure 12: Branding Strategies1. Line extension: This is where an organization adds to its current product line by introducing versions of its products with new features; an example could be a crisp/chips manufacturer extending its line by adding more exotic flavors.

2. Brand extension: If your current brand name is successful, you may use the brand name to extend into new business areas. For example Virgin Group extending its brand from records, to airlines, mobiles and banking.

3. Multi Branding: The Company decides to introduce more brands into an existing category. Kelloggs for example having a number of brands in the cereal market and the cereal bar market. Multi-branding can allow an organization to maximize profits, but a company needs to be weary over their own brands competing with each other over market share.

4. New Brands: An organization may decide to launch a new brand into a market. A new brand may be used to compete with existing rivals and may be marketed as something new and fresh.4.2 Polar Ice Cream Branding StrategyPolar Ice Cream deals with only one brand Polar which their flagship brand is of Ice Cream. Polar is adding new featured and flavored ice creams in their production line regularly to compete in the market. As Polar is promoting and customizing new labels of existing products under the existing umbrella of POLAR brand, we can define Polars Branding strategy as Line Extension strategy of the brand.4.3 ConclusionFrom 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 has been able to ensure marketing excellence and enhance its competitiveness.

References

On Net References

1. http://www.polarbd.com/index.php 2. http://www.investopedia.com/ 3. www.businessline.com 4. www.papers4you.com

Print References

1. Principles of Marketing, 14th Edition, Philip Kotler & Gary Armstrong2. Product Mix Strategies:FMCG in Indian Market, Mohankumar T.P. and Shivaraj B.