Report on Ice Cream

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<p>Page 1 of 16</p> <p>ACKNOWLEDGEMENT</p> <p>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.</p> <p>-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.</p> <p>Introduction To the Company:</p> <p>Page 2 of 16 Our Philosophy...</p> <p>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.</p> <p>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</p> <p>difference of target audience. Although there are some companies which are providing the ice cream in the same area as Movenpick, Jilato Affairs and Omores. 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.</p> <p>We dont condemn individuality, we nurture it... Del Frios</p> <p>Page 3 of 16</p> <p>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:</p> <p>D Y</p> <p>el Frio promises its clients a unique and complete gourmet experience when it comes to desserts. Whether youre 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 bar and a range of elaborate desserts,</p> <p>the Del Frio live dessert counter guarantees the perfect ending to your celebration.</p> <p>Del Frio Kiosks:</p> <p>ou can now experience Del Frios 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.</p> <p>Adding vitality to life</p> <p>T</p> <p>hat s why we re constantly adjusting our range to keep up with changing needs. Calcium enriched products are</p> <p>available to add nutrition and health benefits for kids and adults- there s something for everyone.</p> <p>Page 4 of 16</p> <p>About product;</p> <p>Dy y y y y y</p> <p>el Frio is a Spanish name which means COLD. Del Frios palette of flavors includes timeless classics like y French vanilla,</p> <p>vanillafudge, crunchy caramel, Belgian chocolate, chocolate fudge, cookies and cream, coffee classic and strawberry yogurt,</p> <p>Among others. Del Frio also offers you the unique opportunity to create your own flavors. Our flavors are fashioned</p> <p>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.</p> <p>Ingredients</p> <p>I</p> <p>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</p> <p>energy and essential vitamins and minerals like calcium that help to strengthen bones and teeth. y Ice cream is the only food you eat frozen and offers a unique sensory experience</p> <p>Page 5 of 16</p> <p>y</p> <p>The average number of licks to finish off a single ice pop is 35 to 45.</p> <p>Del Frios 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: -18C. Life time (Out of freezer): 15 min. PACKING Packaging: Multiple packaging Small packs: Cones Cups Take home packs: liter packs 1 liter packs</p> <p>Positioning:</p> <p>Page 6 of 16</p> <p>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.</p> <p>Why it is different?</p> <p>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.</p> <p>Competitors:</p> <p>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</p> <p>Page 7 of 16</p> <p>Frio market is niche market, and thus the real competitors are; y y y Moven Pick Host Spot Gelato Affairs</p> <p>Competitors Analysis:</p> <p>Moven Pick: Moven Picks 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 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.</p> <p>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.</p> <p>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 Omores. Smaller players also added to the escalating competition among these companies to gain maximum market share as possible.</p> <p>Page 8 of 16</p> <p>Commercial Ice Cream: Igloo, Walls and Omores 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 dont 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 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.</p> <p>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.</p> <p>Page 9 of 16</p> <p>Atrium Mall: Ideal place for elite class. Weekly 5000 product. people It purchase becomes the 20000</p> <p>people, who are aware of Del Frio.</p> <p>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.</p> <p>Page 10 of 16</p> <p>Market Segmentation</p> <p>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 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.</p> <p>BEHAVIORAL</p> <p>Page 11 of 16</p> <p>The behavioral segmentation is done on three different variables that tend to define a particular behavior or attitude of a consumer. These are:</p> <p>Occasions regular occasions, special occasions Usage rate usage rate in cold, cold does not matter Benefits quality, presentation, taste, feel, texture, packaging</p> <p>TYPICAL BUYING PATTERN Although in the present WALLS 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 WALLS has adopted a rifle approach and divided market into a number of segments</p> <p>Page 12 of 16</p> <p>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.</p> <p>SEGMENTATION ON THE BASIS OF INCOME CLASSES:</p> <p>Page 13 of 16</p> <p>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 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.</p> <p>SEGMENTATION ON BASIS OF AGE:</p> <p>Page 14 of 16</p> <p>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. 2. TEENAGERS: Teenagers dont 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.</p> <p>SWOT Analysis: Strenghts: y y 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. y y It got good food energy value, which is good for heal...</p>