20-ice cream project

8/14/2019 20-Ice Cream Project

1/47

Group Members

4206 Phinsy Chirayath

4212 Aaron Dsouza

4226 Fizzah S.J

4235 Rahul Mahapatra

4246 Shruti Saraf

4254 Justin Dcosta


2/47

Indias contribution to the modern world may not be signed innumbers, but whatever contribution made worth wise isabsolutely great.

One of the contributions in the desert category THE KULFI

Kulfi

Kulfi is a popular South Asian, ice cream made with boiled milktypically from water buffalo. It comes in many flavors, includingpistachio, malai, mango, cardamom (elaichi), and saffron (kesar).Kulfi differs from western ice cream in that it is richer in taste andcreamier in texture. As well, where western ice creams arewhipped with air or overrun, kulfi contains no air; it is solid dense

frozen milk.

It is made by boiling milk until it is reduced to half. Then sugar isadded and the mixture is boiled for another ten minutes. Thenflavorings, dried fruits, cardamom, etc. are added. The mixture isthen put in moulds and frozen. One can eat kulfi plain as is or itcan be garnished with ground cardamom, saffron, or pistachionuts. As well, Kulfi is also served with Falooda vermicelli noodles.

But since the kulfi could not become world famous, with theconcept of kulfi, ice-cream was started in 1981 in India. Thenonwards it has been one big journey. on the road.

Now, Ice Age The Healthy Ice Cream Parlor brings to you thenew generation of Ice Creams.
http://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Ice_creamhttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Water_buffalohttp://en.wikipedia.org/wiki/Pistachiohttp://en.wikipedia.org/wiki/Malaihttp://en.wikipedia.org/wiki/Mangohttp://en.wikipedia.org/wiki/Cardamomhttp://en.wikipedia.org/wiki/Saffronhttp://en.wikipedia.org/wiki/Vermicellihttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Ice_creamhttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Water_buffalohttp://en.wikipedia.org/wiki/Pistachiohttp://en.wikipedia.org/wiki/Malaihttp://en.wikipedia.org/wiki/Mangohttp://en.wikipedia.org/wiki/Cardamomhttp://en.wikipedia.org/wiki/Saffronhttp://en.wikipedia.org/wiki/Vermicelli


3/47

The Evolution of Ice Cream

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 hasinventor been undisputable credited with its discovery. We knowthat Alexander the Great enjoyed snow and ice flavored withhoney and nectar. Biblical references also show that KingSolomon was fond of iced drinks during harvesting. During theRoman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sentrunners into the mountains for snow, which was then flavoredwith 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 calledsherbet. Historians estimate that this recipe evolved into icecream sometime in the 16th century. England seems to havediscovered ice cream at the same time, or perhaps even earlierthan the Italians. "Cream Ice," as it was called, appeared regularlyat the table of Charles I during the 17th century. France wasintroduced to similar frozen desserts in 1553 by the ItalianCatherine de Medici when she became the wife of Henry II ofFrance. It wasn't until 1660 that ice cream was made available to

the general public. The Sicilian Procope introduced a recipeblending milk, cream, butter and eggs at Caf Procope, the first cafin Paris.

Ice Cream for America


4/47

The first official account of ice cream in the New World comesfrom a letter written in 1744 by a guest of Maryland GovernorWilliam Bladen. The first advertisement for ice cream in thiscountry appeared in the New York Gazette on May 12, 1777,

when confectioner Philip Lenzi announced that ice cream wasavailable "almost every day." Records kept by a Chatham Street,New York, merchant show that President George Washingtonspent approximately $200 for ice cream during the summer of1790. Inventory records of Mount Vernon taken afterWashington's death revealed "two pewter ice cream pots."President Thomas Jefferson was said to have a favorite 18-steprecipe for an ice cream delicacy that resembled a modern-dayBaked Alaska. In 1812, Dolley Madison served a magnificentstrawberry ice cream creation at President Madison's second

inaugural banquet at the White House.

Until 1800, ice cream remained a rare and exotic dessert enjoyedmostly by the elite. Around 1800, insulated ice houses were

invented. Manufacturing ice cream soon became an industry inAmerica, pioneered in 1851 by a Baltimore milk dealer named

Jacob Fussell. Like other American industries, ice creamproduction increased because of technological innovations,including steam power, mechanical refrigeration, the

homogenizer, electric power and motors, packing machines, andnew freezingprocesses and equipment. In addition, motorizeddelivery vehicles dramatically changed the industry. Due toongoing technological advances, today's total frozen dairy annualproduction in the United States is more than 1.6 billion gallons.

Wide availability of ice cream in the late 19th century led to newcreations. In 1874, the American soda fountain shop and theprofession of the "soda jerk" emerged with the invention of theice cream soda. In response to religious criticism for eating

"sinfully" rich ice cream sodas on Sundays, ice cream merchantsleft 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.

Ice cream became an edible morale symbol during World War II.Each branch of the military tried to outdo the others in serving ice


5/47

cream to its troops. In 1945, the first "floating ice cream parlor"was built for sailors in the western Pacific. When the war ended,and dairy product rationing was lifted, America celebrated itsvictory with ice cream. Americans consumed over 20 quarts of ice

cream per person in 1946.

In the 1940's through the 70s, ice cream production was relativelyconstant in the United States. As more prepackaged ice creamwas sold through supermarkets, traditional ice cream parlors andsoda fountains started to disappear. Now, specialty ice creamstores and unique restaurants that feature ice cream dishes havesurged in popularity. These stores and restaurants are popularwith those who remember the ice cream shops and sodafountains of days past, as well as with new generations of ice

cream fans.

According to legend, Marco Polo brought the secrets of ice creamwith him from the Orient, together with other sundry savories.

There is, however, no proof of that, although there is someevidence that the Chinese indulged in iced drinks and desserts,which gives some weight to the Marco Polo theory.

The Chinese did, however, teach Arab traders how to combinesyrups and snow, to make an early version of the sherbet. Arabtraders proceeded to show Venetians, then Romans, how to makethis frozen delight. The Emperor Nero was quite fond of pureedfruit, sweetened with honey, and then mixed with snow--so muchso that he had special cold rooms built underneath the imperialresidence in order to store snow. In the 1500s, Catherine deMedici brought the concept of the sorbet to the French, who weresoon to make a great improvement on it.

As you will have noted, the above are frozen desserts, not ice

cream. That invention awaited the development of the custard,then the discovery that freezing it would create a delectabledessert. This notable event occurred in 1775 in France, and wasshortly followed by the invention of an ice cream machine, whichdid a much better job of creating a light and fluffy frozen custardthan beating by hand could do.


6/47

Thomas Jefferson, who imitated Nero in having a special coldroom for storing snow, provides us with the first recipe for icecream found in the United States. Not to be outdone, GeorgeWashington invested in one of the ice cream machines.

Until 1851, ice cream (or, more frequently, cream ice) was solelymade at home. But an intrepid man from Baltimore, named JacobFussell changed all that by opening the first ice cream factory.

Near the turn of the century, the ice cream soda was created,although by who seems to be in question--either James W. Tuff orRobert Green. It does seem to have been done by accident,however--a scoop of ice cream falling in a glass of flavored sodawater. At any rate, the drink became a national craze, and many

a girl and boy went courting over an ice cream soda. So many, infact, that many municipalities passes laws forbidding the sale ofsoda water on Sunday. Quickly afterwards, the 'sundae' wasinvented--it contained the ice cream, syrup, and whipped creamof the soda, but without the evil influence of soda water.Numerous variations existed.

The next ice cream craze with the 1904 Louisiana PurchaseExposition in Saint Louis. Charles Menches was doing a livelybusiness selling scoops of ice cream in dishes, all the way up tothe point that he ran out of dishes. Frustrated, but determined tostill find a way to make a profit, he lighted upon his friend ErnestHamwi, who was selling a wafer-like cookie called zalabia (aSyrian treat). The combination proved irrestible.


7/47

HISTORY OF THE ICE CREAM CONE

For over a century, Americans have been enjoying ice cream on acone. Whether it's a waffle cone, a sugar cone or a wafer cone,what better way to enjoy a double scoop of your favorite flavor?

Making Its Appearance

The first ice cream cone was produced in 1896 by Italo Marchiony.Marchiony, who emigrated from Italy in the late 1800s, inventedhis ice cream cone in New York City. He was granted a patent inDecember 1903.

Although Marchiony is credited with the invention of the cone, asimilar creation was independently introduced at the 1904 St.Louis World's Fair by Ernest A. Hamwi, a Syrian concessionaire.Hamwi was selling a crisp, waffle-like pastry -- zalabis -- in a booth

right next to an ice cream vendor. Because of ice cream'spopularity, the vendor ran out of dishes. Hamwi saw an easysolution to the ice cream vendor's problem: he quickly rolled oneof his wafer-like waffles in the shape of a cone, or cornucopia, andgave it to the ice cream vendor. The cone cooled in a fewseconds, the vendor put some ice cream in it, the customers werehappy and the cone was on its way to becoming the greatAmerican institution that it is today.

A Business Is Born

St. Louis, a foundry town, quickly capitalized on the cone'ssuccess. Enterprising people invented special baking equipmentfor making the World's Fair cornucopia cones.


8/47

Stephen Sullivan of Sullivan, Missouri, was one of the first knownindependent operators in the ice cream cone business. In 1906,Sullivan served ice cream cones (or cornucopias, as they were stillcalled) at the Modern Woodmen of America Frisco Log Rolling in

Sullivan, Missouri.

At the same time, Hamwi was busy with the Cornucopia WaffleCompany. In 1910, he founded the Missouri Cone Company, laterknown as the Western Cone Company.

As the modern ice cream cone developed, two distinct types ofcones emerged. The rolled cone was a waffle, baked in a roundshape and rolled (first by hand, later mechanically) as soon as itcame off the griddle. In a few seconds, it hardened in the form of

a crisp cone. The second type of cone was molded either bypouring batter into a shell, inserting a core on which the cone wasbaked, and then removing the core; or pouring the batter into amold, baking it and then splitting the mold so the cone could beremoved with little difficulty.

In the 1920s, the cone business expanded. Cone production in1924 reached a record 245 million. Slight changes in automaticmachinery have led to the ice cream cone we know today. Now,millions of rolled cones are turned out on machines that arecapable of producing about 150,000 cones every 24 hours.


9/47

FROM THE COW TO THE CONEHow Ice Cream Is Made

Everybody has a favorite flavor or brand of ice cream, and thedebate over whose ice cream is the best rages on each year.While each manufacturer develops its own special recipes, icecream production basics are basically the same everywhere.

The most important ice cream ingredients come from milk. Thedairy ingredients are crucial in determining the characteristics ofthe final frozen product. Federal regulations state that ice creammust have at least 10% milk fat, the single most criticalingredient. The use of varying percentages of milk fat affects thepalatability, smoothness, color, texture and food value of the

finished product. Gourmet or super premium ice creams containat least 12% milk fat, usually more.

Ice cream contains nonfat solids (the non-fat, protein part of themilk), which contribute nutritional value (protein, calcium,minerals and vitamins). Nonfat dry milk, skim milk and whole milkare the usual sources of nonfat solids.


10/47

The sweeteners used in ice cream vary from cane or beet sugar tocorn sweeteners or honey. Stabilizers, such as plant derivatives,are commonly used in small amounts to prevent the formation oflarge ice crystals and to make a smoother ice cream. Emulsifiers,

such as lecithin and mono- and diglycerides, are also used insmall amounts. They provide uniform whipping qualities to the icecream during freezing, as well as a smoother and drier body andtexture in the frozen form.

These basic ingredients are agitated and blended in a mixingtank. The mixture is then pumped into a pasteurizer, where it isheated and held at a predetermined temperature. The hotmixture is then "shot" through a homogenizer, where pressure of2,000 to 2,500 pounds per square inch breaks the milk fat down

into smaller particles, allowing the mixture to stay smooth andcreamy. The mix is then quick-cooled to about 40F and frozenvia the "continuous freezer" method (the "batch freezer" method)that uses a steady flow of mix that freezes a set quantity of icecream one batch at a time.

During freezing, the mix is aerated by "dashers," revolving bladesin the freezer. The small air cells that are incorporated by thiswhipping action prevent ice cream from becoming a solid mass offrozen ingredients. The amount of aeration is called "overrun,"and is limited by the federal standard that requires the finishedproduct must not weigh less than 4.5 pounds per gallon.

The next step is the addition of bulky flavorings, such as fruits,nuts and chocolate chips. The ingredients are either "dropped" or"shot" into the semi-solid ice cream after it leaves the freezer.

After the flavoring additions are completed, the ice cream can bepackaged in a variety of containers, cups or molds. It is moved

quickly to a "hardening room," where sub-zero temperaturesfreeze the product to its final state for storage and distribution.


11/47

ICE CREAM LABELING - WHAT DOES ITALL MEAN?

There are many choices in today's ice cream case to suit a widevariety of consumer tastes. There is plenty of information on foodlabels, but what does it really mean? Here, the International IceCream Association sheds some light on how ice cream and relatedproducts are labeled.


12/47

Labeling Definitions

The U.S. Food and Drug Administration (FDA) sets standards of

identity for many foods so that consumers will get a consistentproduct, no matter what brand or type they buy. For ice cream,FDA permits the use of nutrient descriptors such as "light,""reduced fat" and "low fat" so that consumers know exactly whatthey're selecting in terms of nutritional content. These FDAstandards follow the federal Nutrition Labeling and Education Act(NLEA), which governs all food labeling.

Here are some of the terms consumers are seeing in thesupermarket, and exactly what those terms mean:

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

"Reduced fat" ice cream contains at least 25% less total fatthan 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 fatper serving

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


13/47

Quality Segments

In addition, there are commonly used marketing phrases that

describe ice cream products in terms of quality segments, such as"super premium," "premium" and "economy." Several factors cancontribute to a product's quality segment, such as price, brandpositioning, product packaging, quality of ingredients and theamount of overrun (air) in the product. Overrun refers to theamount of aeration the ice cream undergoes during itsmanufacture that keeps the mixture from becoming an inediblefrozen mass. Overrun is governed by federal standards in that thefinished product must not weigh less than 4.5 pounds per gallon.

"Super-premium ice cream tends to have very low overrun andhigh fat content, and the manufacturer uses the best qualityingredients.

"Premium" ice cream tends to have low overrun and higher fatcontent than regular ice cream, and the manufacturer uses higherquality ingredients.

"Regular" ice cream meets the overrun required for the federalice cream standard.

"Economy" ice cream meets required overrun and generallysells for a lower price than regular ice cream.


14/47

Company profile:

Name: Ice AgeThe Healthy Ice Cream Parlor

Date of Launch: 20th September 2006

Promoters: Justin DcostaPhinsy ChirayathRahul Mahapatra

Shruti SarafAaron DsouzaFizzah S.J

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


15/47

Proposed Flavors: World famous Vanilla and 20 differentmouth watering flavors.

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

Head of department/ management:

Justin Dcosta : FinancePhinsy Chirayath : Public RelationRahul Mahapatra : MarketingShruti Saraf : Product TestingAaron Dsouza : Human ResourcesFizzah S.J : Outlet manager

Investments:

Total capital investment required:7 crore

Borrowed capital (loan from IDBI bank):3 crore

Total partners investment:4 crore

Each partners capital:70 lakhs


16/47

All the six promoters and administrators of Ice AgeLtd... will be equal partners and the profits sharing ratiobetween them will be equal.

Introduction.

Founded in Mumbai, Maharashtra, Ice Age Ltd.. company issetting up an Ice Cream manufacturing and selling parlor. Theproject will have great significance in the present day context ofincreasing weight and illness among the youth as well as adultsdue to increasing fat and sugar intake due to increasing contentof sweetener in the Ice Creams and juices.

The manufacturing of all types of ice creams will be done at itsproduction site and then will be transported to its parlorsestablished in the heart of the city. Ice Age Ltd.. is entering theIndian market with an aim of establishing its brand as a necessityof the Indian buyers.

The company will follow a strategic positioning approach for thetarget market. Ice Age Ltd.. has kept into account the income andbehavioral factor of the Indian buyers while designing the

products. It is important for the company to understand theconsumer behaviour before it goes into such a market. The Indianconsumer for the first time will have a premium product which iseco-friendly, healthy and affordable.


17/47

Business strategy

Our business strategy will include the determination of the most

beneficial product market in term of establishing itself in this new

product segment. The most important factor for the success of Ice

Age Ltd. brand is the 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 different strategy for the Indian

market since it is composed of quality buyers as well as those

who will buy for their family. Thus, we shall introduce some new

strategies so as to establish our self in the Indian market and

develop a strong customer base.

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

Product Range

External Analysis

Competitors Analysis

Internal Analysis

Environment Analysis

Marketing Strategies

Future Plans

Conclusion


18/47


19/47

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.

According to the recent studies, most of the newly

launched product or services fail due to improper analysis of theirinternal and external needs.

A company should most effectively and efficiently take careof all the internal matters and needs.


20/47

Since internal analysis is so use full and the life cycle as wellas pricing is totally depended upon this analysis, Ice Age Ltd.. hastaken proper and fully effective steps in analyzing all the needand requirements of the company.

During internal analysis the promoter should take care of thefollowing things:

Raw material requirement

Power supply

Labour requirement

Working force

Capital

Working capital

Internal rules and regulations

Proper management

Proper material handling


21/47

The Indian market with its vast size and demand base offers great

opportunities to marketers. Two-thirds of countries consumers

live in rural areas and almost half of the national income is

generated here. It is only natural that rural markets form an

important part of the total market of India though the urban

market is increasing drastically. Our nation is classified in around

450 districts, and approximately 630000 villages, which can be

sorted in different parameters such as literacy levels,

accessibility, income levels, penetration, distances from nearest

towns, etc.

The rural bazaar is booming beyond everyone's expectation. This

has been primarily attributed to a spurt in the purchasing

capacity of farmers now enjoying an increasing marketable

surplus of farm produce. In addition, an estimated induction of Rs

140 billion in the rural sector through the government's rural

development schemes in the Seventh Plan and about Rs 300

billion in the Eighth Plan is also believed to have significantly

contributed to the rapid growth in demand. The high incomes

combined with low cost of living in the villages have meant more

money to spend. And with the market providing those options,

trends and tastes are also changing.

Thus Ice Age Ltd.. 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


22/47

national and multinational players who were then trying forages

into the Indian market.

NEED OF COMPARISION

Consumer Mindset

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

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 two wheeler auto

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 and promotional share needs to be

studied. Thus, market share helps us know the current

market leader and market follower so that our company candevelop an efficient marketing strategy for its product range

after analyzing the current market players position.

SWOT Analysis


23/47

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 an overall analysis of all the major

companies and to know the company having better

strengths, more opportunities and on the other hand the

company having more of weaknesses and threats.

0

5

10

15

20

25

30

3540

45

1st Qtr

natural

baskin androbbins

gelato

others

The above diagram represents the sales of the famousIce Cream parlors in Mumbai and their sales before Ice

Age entered the market


24/47

0

5

10

15

20

25

30

35

1st Qtr

natural

ice age

gelato

baskin and robbins

others

This diagram represents the sales pattern of all the IceCream parlors in Mumbai including Ice Age Ice CreamParlor after one year from the launch of Ice Age Ltd...(Estimated)

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 is required on launch advertisements, free samplesand 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


25/47

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.

Marketing driven

In relative terms, marketing function has greater importance in

the Ice Cream industry. The players have to reach out to mass

population and compete with several other brands. The perceived

differences are greater than the real differences in the product.

Brand equity

Brand equity refers to the intangible asset in the form of brand

names. 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


26/47

better value for money than other competing brands. A successful

brand generates strong cash flow which enables the owner of the

brand to reinvest a part of it in the form of aggressive

advertisement/ promotion to reinforce the perceived superiority of

the brand. The worth of a brand is manifested in the consumer's

insistence on a particular brand or willingness to pay a price

premium for the preferred brand.

Distribution network

In this sector, one of the most critical success factors is the ability

to build, develop, and maintain a robust distribution network.

Availability near the customer is vital for wider penetration as

most products are high value products. It takes enormous time

and effort to build a chain of stockiest, retailers; dealers etc and

establish their loyalties. There are entry barriers for a new entrant

as a new product is typically slow moving and has lesserconsumer demand. Therefore dealers/ retailers are reluctant to

allocate resources and time. Established players use their clout to

inhibit new entrants. However, when a product offers a strong

breakthrough, equity build up rapidly and so does the distribution

network.

The major problems faced while marketing in

the Indian market:


27/47

a.Underdeveloped People and Underdeveloped

Markets:

The number of people below poverty line has not decreased in

any appreciable manner. Thus underdeveloped people and

consequently underdeveloped market by and large

characterize the Indian markets.

b. Many Languages and Dialects:

The number of languages and dialects vary widely from state

to state, region to region and probably from district to district.

The messages have to be delivered in the local languages and

dialects. Even though the numbers of recognized languages are

only 16, the dialects are estimated to be around 850.

c. Prevalence of spurious brands and seasonal

demand: -For any branded product there are a multitude of local

variants, which are cheaper, and, therefore, more desirable to

mass.

d. Different way of thinking: -

There is a vast difference in the lifestyles of the people. The

kind of choices of brands that an urban customer enjoys is

different from the choices available to the rural customer. The

rural customer usually has 2 or 3 brands to choose from

whereas the urban one has multiple choices. The difference is


28/47

also in the way of thinking. The rural customer has a fairly

simple thinking as compared to the urban counterpart.

The

concept is to make the product different from those of its

competitor. When we look at the Indian Ice Cream market we see

that the leaders naturals have constantly maintained its market

leadership by constantly differentiating on the basis of new

flavors.


29/47

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 India.

Ice Age the healthy ice cream parlor offers a widerange of sugar free and fat free ice creams. The ice

creams are specially made keeping in mind all the healthconscious people as well as youth and people who sufferfrom illness like diabetes.

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


30/47

Due to the variety of flavors and the specialty of beingsugar free and fat free makes the Ice Age Ice Creamsmore popular among the fitness and health conscious

people.

Ice Age targets the market where people are ready tobuy healthy junk food due to their taste buds and the factthat Ice Age Ice Creams are totally fat free and sugar freewith the same original taste.

Hence Ice Age Ice Creams targets the market where

people from age group 1 year to 80 years can enjoy theirfavorite ice cream keeping in mind health consciouspeople, diabetic people, young people, etc

Segmentation variables


31/47

Several variables differentiate consumers who prefer differentkinds 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 arestaurant), and desired serving size. The two most importantvariables are probably price sensitivity and the taste-calorietradeoff.

The reason that price sensitivity is especially important is thatsome consumers will pay high prices for a product of high quality.

Therefore, one might be able to make large margins selling tothat market. On the other hand, there is a large market that willnot buy desserts that are priced too high; therefore, some of themanufacturers will want to provide value-priced frozen desserts

that may sacrifice quality somewhat. Consumers today tend to beincreasingly health conscious, and many will therefore want tolimit the amount of calories in the desserts they consume. On theother hand, desserts are consumed for pleasure, and otherconsumers are unwilling to sacrifice the taste provided by calorie-rich desserts. There are also certain people who have highmetabolisms or engage in strenuous activity, leaving them withless worry about weight gain. Frequent or heavy users of frozendesserts would a great target, but this group is not readily

identifiable and reachablethese consumers are not likely tohave distinct media habits or to frequent particular stores, forexample. Serving size preference is an important issue, but isaddressed already to some extent by price sensitivity.


32/47

Segments Based on Combinations of

Variables

Price sensitivity is clearly a matter of a degree, with eachconsumer being somewhere on the continuum from extremelyprice insensitive to extremely sensitive. However, it seemsreasonable to divide consumers into insensitive, value-conscious,price sensitive, and highly price sensitive groups. In terms of thetaste-quality dimension, reasonable categories might be tastedominated, balance seekers, and calorie misers. With four

levels of price sensitivity and three levels of taste-calorietradeoffs, twelve combinations emerge. The more importantsegments will be discussed. Price Insensitive Indulgers areconsumers who take their dessert experiences seriously and willlet neither price nor calories get in the way of their desserts.

These consumers want high quality ingredients and tend to bevery brand conscious. Because their high level of involvement,these connoisseurs will often exchange tips with each other onwhat to try. They can be quite unforgiving to the brand if theyhave a bad experience. Often, they buy from specialty stores,such as bakeries, but may also indulge in super-premium icecream. The Dessert Pragmatists represent a large group ofconsumers who enjoy good desserts but are concerned aboutboth price and quality. They are willing to pay more money for agood dessert, but will tend to switch brands if their favoritedessert is not on sale. They care about taste and will not buy alow fat concoctions without taste. On the other hand, they tend toavoid high fat ice-creams. They tend to buy branded products andpay attention to calorie contents on the containers.

Value Gluttons are concerned about price but are lessconcerned about calories. A dessert has to be relativelyinexpensive for them to buy it. They therefore often buy regionaland store brands. They buy ice cream and other sweetsfrequently and eat large portions.


33/47

Sophisticated Waist liners are greatly concerned about theirfigures and dread calories. This group predominantly consistsmostly of women. Some are affluent while others are willing tomake financial sacrifices to stay healthy. This group enjoys

sophistication in selecting high quality products and is very statusconscious. Often, this group will prefer small serving sizes of richdesserts, and desserts are often consumed in a social setting.

This group tends to shop in upscale supermarkets and inconvenience stores.

Budget Conscious Realists consist of consumers who are veryprice sensitive and are moderately concerned about calories.

Typically, this group includes modest income families, largefamilies, or families headed by a single parent. Parents are

concerned about the amount of calories that they and theirchildren consume, but money is limited, so they tend end upbuying what is less expensive. This group tends to buy what is onsale, generics, or store brands.

Strengths:

Less fixed cost required

Healthy

No side effects

Less consumption of sugar

Less consumption of fats

Reduces chances of illness like diabetes


34/47

Useful for health conscious people

Tasty with health

Variety

Eco-friendly

Weaknesses:

Slightly high in price due to use of special products

Opportunities:

Introduction of new flavors

Easy in achieving break even point

Prices can be reduced in short run

Threats:

Lot of competition from existing Ice Cream parlors offering sugar free

ice creams


35/47

Ice Age Ltd introduces Ice Age Ice Creams TheHealthy Ice Cream Parlor which brings to you a new

generation of ice creams.

There are many choices in todays ice cream case to suita wide variety of consumers taste. There is plenty ofinformation on food labels, but what does it really mean?Where Ice Age does stands??


36/47

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

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

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

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

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

Introduction of new product in the market

Completely fat free ice cream

98.99% sugar free ice cream

Eco-friendly


37/47

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 andfat free concept

More than 30 different flavors to choose from

Same taste

Ice Age Ltd will be establishing its marketingthroughout Mumbai. Ice Age ice creams being an entirely


38/47

new product in the market will initially operate only inMumbai till further expansion.

Ice Age ice creams being fat free and sugar free requires

some extra indegrients and products which increases thecost of the ice cream by 15 20 %. The segmentation ofIce Age ice creams is done on the basics of Demographicsegmentation and psychographic segmentation.Keeping this segmentation in mind the management hastaken steps to open its shops at the following places inMumbai:

Bandra (west)

Pedder road

Inorbit mall (Malad)

Atrea mall (Worli)

R mall (Mulund)

The main production of all the products will be done atthe main unit based at Vasai and then will betransported to all its shops at different places all overMumbai.


39/47

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


40/47

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. Star, Zee, Sony and Doordarshan 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 listenersactually 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.


41/47

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


42/47

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. Justin Dcosta

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. Justin Dcosta 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.


43/47

Ice Age Ltd being one of its kinds, having a variety ofranges in sugar free and fat free ice creams, the

management decided to launch such a unique product inthe heart of the country: Mumbai.

Since the first manufacturing and selling unit of thecompany is set up and functioning in Mumbai, theproduct launch was also held in Mumbai.

The launch of Ice Age Ice Creams Parlor was given to

FountainHead Promotion and Event Pvt.Ltd The launchwas held at Ra: lounge at phoenix mills on 20th

September 2006. All the party event, guest list andmanagement and co-ordination of the launch were takencare by Mr. Akash Deep Sen. the senior executive of theFountainHead Promotion and Event Pvt.Ltd

To promote our product in an entirely new market and

since our product is entirely a new concept in the marketMr. Akash Deep Sen. Arranged an excellent guest list. Theguests invited on the launch were basically top rolemodels, ramp models, best doctors who promote healthyeating, film stars, high profile diabetations, healthconscious people on small as well as big screen ofbollywood and top gym owners.

All the guests were asked their opinions on the newconcept of healthy eating. Their opinion was a treasurefor our company which would be help full during furtherexpansion and customer satisfaction.


44/47

Ice Age Ltd is a entirely new concept in the segment of

frozen deserts, because of this reason the managementhas decided that currently there would only be 5 outletsof the companies ice cream parlor through out Mumbai.As the company progresses in 3 4 months themanagement has lots of plans about the future expansionof the healthy eating concept through-out state, through-out the country and then through-out the world..

Give franchise to reputed dealers through-outMumbai.

To merge with Yoko Sizzlers and open our icecream outlets at all Yoko sizzlers outlets.

To slowly start a manufacturing unit first in Pune,Goa, Madras, Delhi and Calcutta.

Slowly capture all aspects of healthy eating i.e.introduction of healthy snacks, juices, sweets, cakes,chocolates, etc.


45/47

One of the dreams of the promoters of Ice Age IceCreams is to spread the concept of healthy eatingthrough-out the S.A.A.R.C countries.

In todays world of ice creams, Naturals, Baskin andRobbins, Gelato, etc are the leading ice cream parlors

in Mumbai. Their combined sale figures through-out themonth is about 1,50,000 units. Their advertisingstrategies, sales promotions, offers, etc are not on acontinuous stretch because these parlors are in themarket for sometimes

Ice Age ice creams being on a starting stage, will have agood advertising strategies, sales promotions, offers toattract more customers and to make them more familiarto our brand. Due to our new technique of production anddistribution, even after entering the market on platformbasis and investing more on the special inputs our costnearly 15% more than the cost of our competitors, but


46/47

with the concept of healthy eating we accept our sales tobe 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 icecreams but with a dash of health.


47/47

20-ice cream project

Documents