MARKETING OF ICE-CREAMS

SAURABH UPADHYAY

• COMPANY NAME: ESSENCE® ESSENCE OF NATURAL

FLAVORS™

• MISSION: “BUILD BRANDED FOOD BUSINESS TO IMPROVE QUALITY OF LIFE BY OFFERING TASTY, AFFORDABLE AND HIGHLY NUTRITIONAL PRODUCTS TO OUR CONSUMERS, WHILE MAXIMIZING STAKE HOLDERS’ VALUE.”

• VISION: EXPLORE ALL OVER THE WORLD-FROM BAKER TO BABIES, PARENTS TO PET OWNERS, SINGLE SERVINGS TO CATERING, PROVIDING FOR ALL THEIR NEEDS ALWAYS WITH THE ASSURANCE OF OUTSTANDING QUALITY.

INTRO TO THE COMPANY

• LOCATION: MUMBAI, INDIA

• TECHNOLOGY: SINGAPORE

• PLANT CAPACITY: 75,000 KG/DAY

• PLANT EQUIPMENT: SCREW PRE HEATER, HYDRAULIC PRESS, PRESS FILTER, AERATOR, PASTEURIZER, HOMOGENIZER, JACKETED STORAGE TANK, COLD STORAGE, FEEDING & PACKAGING MACHINES.

CONT…

• MASS POPULATION DEMAND.

• LACK OF AVAILABILITY OF NATURAL FLAVOR OF ICE CREAMS

• ANNUAL GROWTH RATE APPROX. : 27%

• SALES: 8.5 BILLION RUPEES IN 2011

• EASE IN AVAILABILITY OF RAW MATERIAL

WHY MUMBAI…???

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

50

100

150

200

250

Consumption (Mlit/year)

Source: www.finance.gov.in

• ESSENCE® MANGO ICE-CREAM

• ESSENCE® GUAVA ICE-CREAM

• ESSENCE® RED GRAPES ICE-CREAM

• ESSENCE® ORANGE ICE-CREAM

• ESSENCE® PINEAPPLE ICE-CREAM

• ESSENCE® APPLE ICE-CREAM

• ESSENCE® ORANGE ICE-CREAM

PRODUCT RANGE

• 5 liter for Rs 300(family pack)

For family & Occasional

• 1 liter Eco-pouches70 Rs.

For Domestic use

Milk- Natures most nearly perfect food

• 87% Water• 13% Solids

– Fat- fat soluble vitamins A,D,E,K– Protein – casein & lactalalbumin– Lactose – carbohydrate– Minerals – Calcium, P, Mg, K– Vitamins – B2 riboflavin, A, D

• INBOUND LOGISTICS

• OPERATION

• OUTBOUND LOGISTICS

• MARKETING & SALES

• SERVICE

PRIMARY ACTIVITIES

• Raw milk from Gujrat and local villages.

• Fresh fruit pulp from Maharashtra regions and southern India

PRIMARY ACTIVITIES

• INBOUND LOGISTICS

• OPERATION

• OUTBOUND LOGISTICS

• MARKETING & SALES

• SERVICE

• Processing of milk• Cream formation• Essence addition• Filling & Packaging• Cooling• Storage

PRIMARY ACTIVITIES

• INBOUND LOGISTICS

• OPERATION

• OUTBOUND LOGISTICS

• MARKETING & SALES

• SERVICE

• Sales & Distribution offices in big cities like, Mumbai, Bangalore, etc..

PRIMARY ACTIVITIES

• INBOUND LOGISTICS

• OPERATION

• OUTBOUND LOGISTICS

• SERVICE

• MARKETING & SALES

• Customer Care Service (CCS) in cities.

• Toll free numbers for complaints, queries and feedback.

• Educated staff in field of food & nutrition.

PRIMARY ACTIVITIES

• INBOUND LOGISTICS

• OPERATION

• OUTBOUND LOGISTICS

• SERVICE

• MARKETING & SALES

• T.V. channels• Newspaper• Holdings• Offers• Concerts • Celebrity Endorsement

TV BUDGET

Channels Timing No. of ads Price/min

Star, zee network

7:30 am 2 1,00,000

9:15 pm 2 1,32,226

Geo 10 pm 2 50,000

Times now, Aaj-tak, zee network

8 pm 2 70,000

M-tv 9 pm 2 40,000

Total 3,92,226

News paper Size Day Price

T O I 27*4 Sunday 4,30,920

Dainek bhaskar group

27*4 Sunday 17,82,000

Holdings 500 sq. ft. 25,60,000

Total 47,72,920

NEWS PAPER + HOLDINGS BUDGET

Advertisement sources Cost per year

TV channels 94,13,424

News papers 1,77,03,360

Holdings 2,56,00,000

Total 5,27,16,784

TOTAL ADVERTISEMENT BUDGET

Company

Storage

Retail outlets

Consumers

DISTRIBUTION STRATEGY

Mumbai 30%

Pune 20%

Bangalore10%

Hy-der-abad5%

Other 7%

Ahmedabad 28%

SALES FORECAST

Source: www.marketanalysis.co.in

MARKETING MIX

Product

Promotion

Place

Price

SWOT ANALYSISStrengths Weaknesses

Human Resources Education in ice cream production Experience with product and

customers Ease of communication due to

small work force Prior knowledge of fruit processing

Seasonal labour will be difficult to gauge and rely on

Intense workload for employees

Physical Resources Land is already purchased Fruit pulp is available in close

proximity to processing facility. Facility located off of a paved road

Buildings and equipment need to be purchased which will come at a high cost

Freezer space will be an important part of the facilities but the company’s needs may change drastically over time

Financial Resources More land for building expansion is easily acquired

Transport costs are still minimal and done

Situated in lower tax assessed area Cost split

Initial start-up costs will be large and take a large amount of capital

Seasonal labour wages will be difficult to gauge based on quality of work

SWOT ANALYSISOpportunities Threats

Need for premium ice cream in hotel and convention centers

Contracting product out during the slow season will reduce the effects of market flux

Need for this type of premium dessert product in special events market

Market trend in ice cream has been decreasing (Goff, 2007)

Competitors in the market will fight for the market to acquire

Contracts may be difficult to maintain year-round

Seasonal inventory needs to be stored until it is needed

THE OPPORTUNITY“TO EXPLORE A NICHE MARKET IN THE

ESSENCE PREMIUM ICE CREAM INDUSTRY BY POSITIONING A COMPANY THAT

PROVIDES A UNIQUE OPTION ALLOWING CUSTOMERS TO TAILOR A SIGNATURE ICE CREAM BRAND TO MEET THE NEEDS OF THE ESSENCE OF NATURAL FLAVOR ICE-

CREAMS.”

WWW.CIA.GOV

WWW.FINANCE.GOV.IN

WWW.BRANDSYNARIO.COM

WWW.MARKETANALYSIS.CO.IN

WWW.NDDB.COOP • THE DAIRY MARKETS ( CHICAGO MERCANTILE

EXCHANGE) SUBSCRIPTIONS 1-815-459-1742

• MARKETING AND PRICING OF MILK AND DAIRY PRODUCTS IN THE UNITED STATES. KENNETH W. BAILEY 1997

REFERENCES . . .

Have a Nice Day…!!!