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8/8/2019 Final Icecream
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MARKETING MANAGEMENT
Submitted to
Mr. Jaffery
Submitted by
Sana Javed
Neheh Ali Mir
Khadija NaumanMehwish Jabeen
M.B.A. III -09
Date 10th December, 09
The Evolution of Ice Cream
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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 has inventor been undisputable credited with its discovery. During the
Roman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners into the mountains
for snow, which was then flavored with 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 called sherbet. Historians estimate that this recipe evolved into
ice cream sometime in the 16 th century. England seems to have discovered ice cream at the same
time, or perhaps even earlier than the Italians. "Cream Ice," as it was called, appeared regularly
at the table of Charles I during the 17 th century. France was introduced to similar frozen desserts
in 1553 by the Italian Catherine de Medici when she became the wife of Henry II of France. It
wasn't until 1660 that ice cream was made available to the general public. The Sicilian Procopeintroduced a recipe blending milk, cream, butter and eggs at Caf Procope, the first cafe in Paris.
Until 1800, ice cream remained a rare and exotic dessert enjoyed mostly by the elite.
Wide availability of ice cream in the late 19 th century led to new creations. In 1874, the
American soda fountain shop and the profession of the "soda jerk" emerged with the invention of
the ice cream soda. In response to religious criticism for eating "sinfully" rich ice cream sodas on
Sundays, ice cream merchants left 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.
The next ice cream craze with the 1904 Louisiana Purchase Exposition in Saint Louis. Charles
Menches was doing a lively business selling scoops of ice cream in dishes, all the way up to the
point that he ran out of dishes. Frustrated, but determined to still find a way to make a profit, he
lighted upon his friend Ernest Hamwi, who was selling a wafer-like cookie called zalabia (a
Syrian treat). The combination proved irrestible.
SCOOPZ
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COMPANY PROFILE
The companys name is Scoopz Ltd. It is an ice cream manufacturing company. We are
providing quality ice cream which is healthy. It is a low calorie product which is sugar free and
fat free, especially targeting the people who are health conscious and diabetic.
Mission Statement
Setting new trends in the creamy world of ice creams.
Vision Statement
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INTRODUCTION
Scoopz Ltd. Company is based in Lahore. It is ice cream manufacturing company and an ice
cream parlor. These days the content of sweeteners in ice creams is leading to weight and health
issues among youth and adults. For this reason Ice Age is providing a yummy solution to the
ever increasing weight problems, thus reducing obesity. For this reason Ice Age will have greater
significance.
Manufacturing of all ice creams is done at its production site located on Ferozpur road, which is
then transported to the parlor located at MM Alam Road. Ice Age Ltd. is entering the Pakistani
market with an aim of establishing its brand as a necessity of the Pakistani buyers.
The company will follow a strategic positioning approach for the target market. Ice Age. has
kept into account the income and behavioral factor of the Pakistani buyers while designing the
products. It is important for the company to understand the consumer behavior before it goes
into such a market. Pakistani consumer will for the first time enjoy low calorie, healthy and
affordable ice cream in a variety of different flavors.
BUSINESS STRATEGY
The most important factor for success of Scoopz Ltd. brand is 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 competent strategy for the Pakistani market
since it is composed of quality buyers as well as those who will buy for their family.
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Product Market Expansion Strategy:
Product Market Expansion Grid
Product
Markets
Penetration Product expansion
Market expansion Diversification
The first growth vector involves gaining penetration with the existing product-market. Scoopz
attempts to attract customers from competitors through its strategic positioning and will establish
strong brand equity.
The second growth vector involves product expansion while staying in the current market.
Scoopz is offering a new product. It is aimed not only for the existing market but also for the
price conscious segment.
The third growth vector applies the same products to the new markets.
The fourth growth vector is 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.
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Differentiation Strategy
Concept is to make the product different from those of its competitor. When we look at the
Pakistani Ice Cream market we see that the leaders Walls have constantly maintained its marketleadership by constantly differentiating on the basis of new flavors.
We will be coming up with line extensions with regular frequency. The only alternative for
Scoopz to survive in this industry will be to differentiate itself. This differentiation could be on
the basis of the marketing mix. Product, Promotion, Place.
INTERNAL ANALYSIS
According to the recent studies, most of the newly launched product or services fail due to
improper analysis of their internal and external needs.
A company should most effectively and efficiently take care of all the internal matters and
needs.
Since internal analysis is important and pricing is depended upon this analysis, Scoopz has taken
proper and fully effective steps in analyzing all the need and requirements of the company.
During internal analysis the promoter should take care of the following things:
Raw material requirement
Power supply
Labor requirement
Work force
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Capital
Working capital
Internal rules and regulations
Proper management
Proper material handling
EXTERNAL ANALYSIS
CUSTOMER ANALYSIS
The Pakistani market with its vast size and demand base offers great opportunities to marketers.
People is Pakistan especially Lahore are very fond of eating rich and heavy food with proper
starters, main course and desserts. People have been spending a lot on dinning out and having a
fun place to go to. Late night outings and youth gatherings are very common trend in new
generation. People have craze to dig out new hang out places for fun and a unforgettable
experiences.
Thus Scoopz 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 national
and multinational players who were then trying for ages into the mature market.
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COMPETITORS ANALYSIS
Direct Competitors sssssAll the ice cream parlors are direct competitors of Scoopz including;
Ice Berg
Yummys 36
Gelato affairs
Hot spot
Walls Spin bar
Hobnob
Marble stones
INDIRECT COMPETITORS
Indirect competitors includes
Walls
Omore
Chaman ice cream
Gourmet ice cream
Traditional kulfa and faloda
All the cafs and bakery shops
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NEED OF COMPARISION
Consumer Mindset
We have to find out why the customer is going to the competitors. Is it because of the price,
quality, flavor, availability, location or ambience? They always have a different loyalty status
for different brands. 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 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 andpromotional share needs to be studied. Thus, market share helps us know the current market
leader and market follower so that our company can develop an efficient marketing strategy
for its product range after analyzing the current market players position.
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SWOT ANALYSIS
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 anoverall analysis of all the major companies
Strengths
Catering niche market
No side effects
Less consumption of sugar
Less consumption of fats
Reduces chances of illness like diabetes
Useful for health conscious people
Taste with health
Variety of flavors
Weaknesses
Misconception about low calorie ice cream
Less awareness among people regarding the product
Heavy budget has to be allocated for promotion
Opportunities
Introduction of new flavors
Easy in achieving break even point
Prices can be reduced in short run
New product line ( ice cream cakes, bake alaska, ice cream shakes,cold coffee etc)
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Threats
Lot of competition from existing Ice Cream parlors and ice cream manufacturers
Unstable economic conditions
Terrorism
ENVIRONMENTAL ANALYSIS
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, free
samples and 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 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.
Brand equity
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 better
value for money than other competing brands. We have to position our brand in the minds of the
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TARGET MARKET
Scoopz the healthy ice cream parlor offers a wide range of sugar free and fat free ice
creams. The ice creams are specially made keeping in mind all the health conscious people aswell as youth and people who suffer from illness like diabetes.
Scoopz is a healthy ice cream parlor which targets the upper middle class and elite class.
Due to the variety of flavors and the specialty of being sugar free and fat free makes Scoopz Ice
Creams more popular among the fitness and health conscious people.
Scoopz targets the market where people are addicted to junk food. Scoopz provides them an
opportunity to satisfy their cravings while eating a healthy product.
Hence Scoopz targets the market where people from age group 3 years to 80 years can enjoy
their favorite ice cream without being conscious about their health issues.
SEGMENTATION
Segmentation variables
Several variables differentiate consumers who prefer different kinds 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 a
restaurant), and desired serving size. The two most important variables are probably price
sensitivity and the taste-calorie tradeoff.
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The reason that price sensitivity is especially important is that some consumers will pay high
prices for a product of high quality. Therefore, one might be able to make large margins selling
to that market. On the other hand, there is a large market that will not buy desserts that are priced
too high; therefore, some of the manufacturers will want to provide value-priced frozen desserts
that may sacrifice quality somewhat. Consumers today tend to be increasingly health conscious,
and many will therefore want to limit the amount of calories in the desserts they consume. On
the other hand, desserts are consumed for pleasure, and other consumers are unwilling to
sacrifice the taste provided by calorie-rich desserts. Serving size preference is an important issue,
but is addressed already to some extent by price sensitivity.
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MARKETING MIX
PRODUCT
Scoopz is a healthy ice cream parlor which brings to you a new generation of ice creams. Scoopz
is offering a wide range of low fat ice creams. Low fat ice creams contain only 3 grams of total
fat per serving. It is very beneficial for diabetics and people who wish to live a healthy life by
controlling their intake of fats and calories. Young people these days are becoming more diet
conscious, Scoopz is providing the right product for them.
Ice creams are made with skimmed milk, low fat cream, low fat yogurt and fruit sugar is used as
a substitute for regular cream and sugar. For some flavors artificial sweeteners are used to
maintain sweetness. Natural fruits are used as chunks and flavoring.
Other than ice creams, Scoopz is also providing a unique experience with its aesthetically
designed outlet. Exterior of the ice cream parlor is made in a standing penguin. The sitting
arrangement is in spiral form of three floors with a huge aquarium serving as a pillar for the
three floors. This unique idea of a huge penguin is definitely worth experiencing.
Scoopz is offering a variety of flavors. Available flavors at Scoopz are:
Traditional vanilla
Mild chocolate
Dark chocolate
Nutty fudge
Chocolate fudge
Pistacio
Peach Mint chocolate
Nutty chunk
Crunch
Caramel and dates
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Mango
Banana boat
Chocolate oreo
Strawberry Tutty fruity
Pineapple
Scoopz ice cream is healthy and has no side effects as it is made from natural products and no
preservatives are added. Ice cream is a delight which is enjoyed in all seasons by all age groups.
Many people have a misconception about sugar free or fat free ice creams that they are not very
good in taste, but Scoopz is just like the normal ice creams available in the market. It is
especially developed with carefully researched recipes to develop the same taste as for full
cream ice creams.
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PRICE
We have used a combination of perceived value pricing strategy and markup pricing strategy.
Because we want to in cash the image which is built in the minds of the consumers due to the
health, low calorie and high quality associated with the product provided in a very attractive and
clean environment.
Price is set at Rs.75 per scoop and u can take as many scoops u wish
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.
The total investment on our project is Rs.1,062,000 Which comprises of our shared equity and
loans from some banks. Along with our shared equity, we have taken a loan of Rs.10,620,000
from MCB and NBP. These are only banks which are profitable these days and they are charging
a low interest rate on it.
Financial Plan
Project Fixed Cost (In Rupees)
Land Already Available
Building 12, 000,000
Machinery 10,000,000
Transportation/Installation 150,000
Furniture 1,500,000
Vehicles 20,000,000
Total Fixed cost 151,515,000
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Total Cost of Production
Cost Of Goods Sold (In Rupees)
Raw Material 600,000
Wages/Salaries 150,000
Utilities 150,000
Depreciation 120,000
Total 1,020,000
Operating cost (In Rupees)
Administrative expanses 60,000
Selling expanses 1,20,000
Office expanses 60,000
Total 4,52,000
Financing plan (In Rupees)
Loan 10,620,000
Equity 7,000,000
Total 17,620,000
Financial charges (In Rupees)
Rate interest 15%
Term loan 17,620,000 *15% = 264,330
Other bank charges 17,620,000 * 1% = 176,200
Total 202,530
Sources of machinery
The selection of machinery and equipments is one of the important decision, there are number of
Machinery Manufacturers but for this project the required machinery is locally available.
Breakeven Analysis
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Breakeven analysis is a tool used to determine when a business will be able to cover all its
expenses and begin to make a profit. For the startup business it is extremely important to know
the startup costs, which provides with the information one need to generate enough sales revenue
to pay the ongoing expenses related to running the business.
The graphic method of analysis helps in understanding the concept of the break-even point.
However, the break-even point is found faster and more accurately with the following formula:
Q = FC / (UP - VC)
where:
Q = Break-even Point, i.e., Units of production (Q),
FC = Fixed Costs,
VC = Variable Costs per Unit
UP = Unit Price
Break-Even Point
It is based on figures for first year, the calculation is as under:
Break-Even Point, Q = Fixed Cost / (Unit Price - Variable Unit Cost)
Break even point = 300,000 units/ scoops
The expected break even period for the company is approximately 3 years.
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PLACE
Scoopz Ltd will be establishing its business throughout Lahore but being an entirely new product
in the market will initially operate only on M.M.Alam Road till further expansion.
The purpose of opening our very first branch on M.M.Alam Road is that, nowadays, this road is
the centre of attraction for the lahori peoplemost of the well known restaurants and even one
of our competitors (marble stones) is situated in this streetalso this road has become a status
symbol and so choosing this location will enhance our brand image as well.
We are going to use a simple indirect distribution channel
MANUFACTURER DISTRIBUTOR RETAILER
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The main production of all the products will be done at our own main unit based in Ferozpur
Road and then will be transported to the retail outlet on M.M.Alam Road, Lahore through our
own delivery vans.
PROMOTION
We are not only promoting our product we are promoting the experience with it. we are going to
sell the concept and the confidence that our product is the most reliable and our consumers can
trust us for providing them the best quality in a hygienic environment.
Tools of Advertisement
1 Television advertisements: Advertisements to promote and market our product will be
shown on leading television channels. Major music and family channels will promote
Scoopz Ice Creams as they will reach out to the youth as well as all age groups. Aag,
Geo, Ary, Mtv Pakistan and Indus vision etc will be our main promoters.
Our ads would be animated using the icon penguin as our subject.
2 Radio is the medium with the widest coverage. Studies have recently shown high levels
of exposure to radio broadcasting among our youth and it has a low cost but a fast way of
delivering a message.
3 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.
4 Banners, neon signs: Hoardings, banners, neon signs will be displayed at clubs, discs,
outside theatres and shops to promote our range of flavors.
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5 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.
Sales Promotion
Apart from different advertising tools we are going to offer some interactive schemes for the
consumers will also be introduced which will make them feel as a part of Scoopz. e.g we can
ask them what other flavors they would like to have or which ones should be improved.
They can also be asked to suggest different combinations and given prizes on the best
suggestion.
Similarly they could also be asked to suggest names for some of the flavors and a prize could be
given to the selected one. These prizes needn't be very big just tokens to remind them that we
take our customers as our family.
Sampling would also be used to increase the sales of our products. We will target the shopping
malls like Pace, Mall of Lahore, City Towers etc to carry out our sampling.
Budget Allocation
We have allocated a budget of 7 crore for the promotion and a major portion of it would be
invested in TV ads and having a brand ambassador, which will account for almost 50 % of our
total budget.
We will invest about 10 % in radio ads and another 10% in print media. 20% can be invested in
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sampling and the remaining 10% can be invested in making interactive schemes for customers.
Product Launch
We decided to launch the Soopz ice cream parlor in Lahore because people are more willing to
accept new concepts here as compared to other cities.
To promote our product which is entirely a new concept in the market we arranged an excellent
guest list. The guests invited on the launch were basically top role models, ramp models, best
doctors who promote healthy eating, film stars, high profile diabetations, health conscious
people on small as well as big screen of Bollywood and top gym owners.
All the guests were asked their opinions on the new concept of healthy eating. Their opinion was
a treasure for our company which would be help full during further expansion and customer
satisfaction.
Future Plans
Scoopz is an entirely new concept in the segment of frozen deserts; because of this reason the
management has decided that currently there would only be 1 outlet of the company's ice cream
parlor in Lahore. As the company progresses in 2-3 years the management has lots of plans
about the future expansion of the healthy eating concept through-out state, through-out the
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country and then through-out the world.
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CONCLUSION
In todays world of ice creams, Hot Spot, Marble Stones and Gelato, etc are the leading ice
cream parlors in Lahore. Their combined sale figures through-out the month is about 150,000
units. Their advertising strategies, sales promotions, offers, etc are not on a continuous stretch
because these parlors are in the market for sometime.
Scoopz ice creams being on a starting stage will have good advertising strategies, sales
promotions and offers to attract more customers and to make them more familiar to our brand.
Due to our new technique of production and new concept, even after entering the market onplatform basis and investing more on the special inputs our cost nearly 15% more than the cost
of our competitors, but with the concept of healthy eating we accept our sales to be more than
our competitors.
Due to our special fat free and sugar free ice creams all age groups will be able to enjoy the same
old taste of ice creams but with a dash of health.