Download - Report on Ice Cream

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ACKNOWLEDGEMENT

By the Grace of Almighty Allah, the most Merciful, the most

Beneficial, we are today submitting our report; we have the pearls of my eyes to admire

the blessings of the compassionate, omnipotent, the Merciful and the beneficent Allah

who is the entire source of knowledge and wisdom

Due to his bounteous blessings, we become able to contribute this comprehensive

assignment towards the deep ocean of knowledge already exists. Heart is warm with

love and thoughts have turned to the city of knowledge – The Holy Profit (P.B.U.H) His

saying “Learn from to Cradle to Grave” inspired the strong desire to undertake this

course of valuable studies.

It would obviously be injustice not to mention the name of the people involved to make

this assignment possible and helped their utmost to make us understand the overall

operation.

-Despite of the most hectic schedule, Omer Habib helped us so much.

In the end, we would like to thank all our colleagues, and specially to our teacher who

made us capable of doing so.

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Introduction To the Company:

The area of our interest is food and

beverages. There are many companies who

are providing such item like Unilever (Largest

company of the field), Procter and Gamble.

They have many of the consumer products.

They provide the products dealing mas

marketing, that is why they have to cater a big

market. The idea of establishing a company in such competition came from the

difference of target audience. Although there are some companies which are providing

the ice cream in the same area as Movenpick, Jilato Affairs and Omore’s. Target

audience for these companies are more or less same. But there was still a consumer

block missing, to cater that, Del Frio jumped in. Del frio is not very old, started working

in the end of year 2010. Initially started work from CBM University, later on expended to

new markets, like Atrium Mall sadar, Golf Club, Creek Club and events at Sea view.

The Company targets the elite class, and have set the pricing in accordance with

the affordable level. Initially Delfrio have only 2 to 3 flavous, but they have now moved

to more than 8 flavors and have planned to move to new markets.

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el Frio’s wide array of ice creams and desserts vows to serve every

individual with a sweet tooth. Using the finest ingredients from across

the globe, Del Frio offers the purest soiree of deliciousness and

palatability. Del Frio is moulded such that scrumptiousness lurks in every spoonful of

delectable deliciousness. Whether you prefer your ice cream on a freshly baked cone,

in a cup, sundae, milkshake or coffee, you are guaranteed servings of mouthwatering

goodness.

Del Frio Live Dessert Counters:

el Frio promises its clients a unique and complete gourmet

experience when it comes to desserts. Whether you’re

planning an intimate gathering, charity ball or a grand

reception, Del Frio promises to make the occasion truly

memorable. With over 30 flavours of ice cream to choose

from, including the opportunity to create your own, a latte

Our Philosophy...Del Frio is committed to

becoming the unparalleled connoisseur in the world of

ice cream and desserts. Our handcrafted products are

freshly prepared and made from only the purest quality ingredients on the market,

processed in a natural, preservative-free

environment.

We don’t condemn individuality, we

nurture it...

D

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bar and a range of elaborate desserts, the Del Frio “live dessert counter” guarantees the

perfect ending to your celebration.

Del Frio Kiosks:

ou can now experience Del Frio’s culinary miracles at a Del

Frio kiosk stationed near you. The Del Frio kiosks feature up

to 8 flavors of ice cream, latte bar, hot brownies and freshly

made cones and promise you an exclusive sensory

experience.

Adding vitality to life

hat’s why

we’re

constantly adjusting our range to keep up with

changing needs. Calcium enriched products are available to add nutrition and health benefits for kids

and adults- there’s something for everyone.

About product;

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el Frio is a Spanish name which means COLD. Del Frio’s

palette of flavors

includes timeless

classics like

French vanilla,

vanillafudge,

crunchy caramel,

Belgian chocolate,

chocolate fudge,

cookies and cream, coffee

classic and

strawberry yogurt,

Among others. Del Frio also offers you the unique

opportunity to create your own flavors. Our flavors are fashioned to inspire and are in

turn inspired by our customers’ imaginations and desires. We strive to produce desserts

that will complement the idiosyncratic visions of our clients. Customizable to whatever

your taste buds may fancy, we cater to anyone with a sweet tooth… and tempt even

those who lack one.

Ingredients

ce cream is made from ice (water), milk, fat sugar, fruit

and natural flavours and colours. All of these ingredients

are necessary for you in your diet to lead an active lifestyle.

From these ingredients you get protein that helps build

body tissue, carbohydrates and fats which give you energy

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and essential vitamins and minerals like calcium that help to strengthen bones and

teeth.

Ice cream is the only food you eat frozen and offers a unique sensory

experience

The average number of licks to finish off a single ice pop is 35 to 45.

Del Frio’s ice creams are consumer, nondurable, convenience, packaged goods. It has

a variety of flavours.

Raw materials: Contract Suppliers

Production Unit: One Unit at Karachi

PERISHIBILITY

Required Temp: -18°C.

Life time (Out of freezer): 15 min.

PACKING

Packaging: Multiple packaging

Small packs:

• Cones

• Cups

Take home packs:

• ½ liter packs

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• 1 liter packs

Positioning:

Del Frio ice cream is positioned as an experience,

not a product, which people do remember.

Positioned as high end ice cream but at an

affordable price. For elite class, who purchase to

have a feel of international brand, a good

packaging and a unique ice cream texture. Del

Frio is an Spanish name which means cold.

Why it is different?

Del frio uses the imported ingredients. Artificial ingredients and essence

are not used as other commercial ice cream companies do. Del Frio

aims to provide a good feel, look, the way it is packaged and the a

different texture. Natural ingredients are used to enhance the taste,

which makes it different from other ice creams. The things that

differentiates it from others, is the avialabiltiy of freshly prepared

brownies and yogurt, so it has a unique taste and different style of serving. Chocolate

Fudge is available with fresh chunks of brownies, Vanilla Fudge is available with

brownies chunks, Strawberry Yogurt with fresh yogurt, Cookies and Cream with Oreos.

There is no other ice cream provider giving such taste and fresh items.

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Competitors:

Although Unilver is also an ice cream

provider, and in principle it is the

competitor of Del Frio, but the target

audience of Unilever is something very

different. Unilever targets the masses

and produces the ice cream in huge

quantities. Del Frio market is niche

market, and thus the real competitors

are;

Moven Pick

Host Spot

Gelato Affairs

Competitors Analysis:

Moven Pick:

Moven Pick’s ice cream is considered as the most quality ice cream and very

expensive ice cream. Major reason, that why it is so expensive is that, they import the

ice cream in frozen for from Switzerland. For the purpose they have to pay a high cost

of franchise, and a heavy duty of transportation. That is the reason they charge a scoop

of ice cream in 149 Rs, which is 50 Rs more than what Del Frio offers of the same

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scoop. They charge per lit more than 1000 Rs, while Del Frio has a unique pricing

strategy for 1 lit which is below 600 Rs.

Gelato Affairs and Hot Spot:

Hot spot and gelato Affairs have their own outlets and they bear over heads charges,

that is why they also charge the high price of ice cream, they have to compromise the

quality to overcome these overheads.

Competitive and Market Position:

Ice cream sector is remained remarkably strong and resilient. Accordingly to the ice

cream sector is primarily dominated by major players such as Unilver, Igloo, Gelato

Affairs, Moven Pick and Omore’s. Smaller players also added to the escalating

competition among these companies to gain maximum market share as possible.

Commercial Ice Cream:

Igloo, Walls and Omore’s market their ice cream as commercial ice cream. They use

multiple artificial stabilizers to make the ice cream frozen. Their ice cream is essence

based. That is why they bear low cost of production, and sel ice cream at low cost, they

distribute their product all over the Pakistan. They have their own outlets and also

distribute the refrigerators all over the Pakistan. They do mass marketing in order to

overcome the huge overheads, but their ice cream is only of the standard to be accpete

by masses, they don’t use the actual ingredients.

Strategy:

Del frio go through the word of mouth strategy. We advertise ourselves through

Facebook. We have registered ourselves on Karachisnob.com (Where all types of food

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items either national or international are available at a single call). We have planned to

expend at Sofitel Clifton, Agha Super Market, Dolmin city clifron. Where we find the

more elite class spending.

Why we targeted CBM:

As our target audience is elite class, it is affordable to them. CBM is the ideal place for

targeting the selected class. There is the strength of 4000 students, 4000 students are

major source of brand awareness in their friends and their families. We have perfect

age group at CBM from 19 to 25 years. Del Frio had a very good response. Reasonable

rates, affordable by students (Rs 90 per Scoop). There are minimum over heads

charges due to university area and greater profitability.

Atrium Mall:

Ideal place for elite class.

Weekly 5000 people

purchase the product. It

becomes 20000 people, who

are aware of Del Frio.

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At Events:

Del Frio does not miss the chance to cater the events. Specially at Golf Club, Creek

Club, South end Club, where elite class is targeted. Recently there was targeted the

Basant Festival.

Market Segmentation

CHARACTERISTICS OF THE MARKET

Few of the characteristics upon which the market has been segmented are discussed

below:

GEOGRAPHIC

Del Frio is targeting its audience only in Karachi at present.

DEMOGRAPHIC

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Demographic variables of Del Frio target market are mostly age and income based. Del

Frio havecreated many sorts of ice creams. If we consider the income segmentation,

Del Frio is targeting upper, middle income levels. The pricing for the class is such that, it

does not bother the middle class to buy a scoop of ice cream, and it is also affordable

while purchasing a 1 lit deal.

PSYCHOGRAPHIC

The psychographic segmenting is done on the basis of the taste and health conscious

consumer. Del Frio targeted its market by creating an image of high quality and hygienic

products. Also relating fun and Shugal with ice cream helps depicting the life style of its

potential user, especially at events.

BEHAVIORAL

The behavioral segmentation is done on three different variables that tend to define a

particular behavior or attitude of a consumer. These are:

Occasions – regular occasions, special occasions

Usage rate – usage rate in cold, cold does not matter

Benefits – quality, presentation, taste, feel, texture, packaging

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TYPICAL BUYING PATTERN

Although in the present WALL’S enjoys leading the market from the day it came in the

business, Del Frioproducing a high quality ice cream has proved itself to be the best in

the market in a selected area, that is why the popularity is increasing day by day. The

nation have a tendency to follow others to the maximum extend. Pakistan is a nation

with a tendency to get influenced by others and especially by western communities. We

can categorize ice cream as fast food, which is a symbol of western community, so we

can very well imagine ice cream gaining its popularity.

Consumers with high purchasing power are becoming heavy user of products available

by Del Frio. Where else the consumers with very low purchasing power are light users.

The density of user can also be categorized geographically. Although Pakistan is

considered a hot climate country generally but it does have areas with low temperature.

Ice cram is a kind of food, which is not age bounded or class bounded. But it is a fact

that people of different ages and social classes may require different varieties of ice

cream at different price levels. So for that purpose WALL’S has adopted a rifle approach

and divided market into a number of segments according to different social classes and

ages and then tried to provide ice cream solution for all to satisfy the consumer within

his buying power.

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SEGMENTATION ON THE BASIS OF INCOME CLASSES:

1. UPPER CLASS

It includes the elite or higher income class who can afford even the most expensive

items without much botheration. They consume ice-cream more on the basis of taste

and preference rather than money.

2. UPPER-MIDDLE CLASS

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This class includes people with moderate kind of income. You can neither put them in

free hand category nor very less purchasing power category. These people normally

take the taste and affordability both into consideration.

3. LOWER-MIDDLE CLASS

These are the people with very little income to spend. These people usually prefer the

low price and economy than taste and preferences. They are not in the target audience

of Del Frio.

SEGMENTATION ON BASIS OF AGE:

1. ADULTS

Adults will mostly prefer the quality product which not only fulfill their taste and

preference requirements but also reflects their personality. The adults are normally

ready to pay for a product which fulfills their physical and psychological needs because

they are the income generators.

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2. TEENAGERS:

Teenagers don’t have any specific taste and preferences. New products and new ideas

always attract them. But they have a limited product and they have to maintain their

expenditure with in that.

3. KIDS:

Kids normally do not have a great know-how of the taste rather they are psychologically

attracted towards the product. They are not concerned with the taste of ice cream and

they just want ice cream. As they are dependent and cannot spend money themselves,

so their parents mostly just provide them with an economical ice cream, not any

specialized ice cream as it is not demanded.

SWOT Analysis:

Strenghts:

Available in 8 different flavours, with brownies, orios and

chocolate.

Prices are resonable, such that, a liter pack is much cheaper

than a single scoop of ice cream, but the single scoop is

also available at reasonable prices.

It got good food energy value, which is good for health.

All the ingredients are imported, although are made at Del

Frio, that is why the quality remains at top priority.

Weakness:

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It is homemade ice cream whithout artificial stabilizers, that is why the durability is not much

good, it melts very soon.

It does not have many outlets in target areas also.

Advertisement is not so good, that is why still not much famous among people.

Opportunities:

Come up with new flavous which would be able to attract the

youth.

People are aware of ice cream to serve in events, there is a

big market for it.

Del Frio is the first one to deliver the ice cream at homes, so

it is a big opportunity to be known for delivering at door

steps.

Threats:

There are many competitors in the Del Frio’s target

segment, who are trying to provide the same thing.

Increase in the prices of raw material is big threat, it will be

very difficult to stabilize the prices.

Download - Report on Ice Cream

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