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Assignment

Of
MARKETING
On
ICE CREAM®
Submitted To:
MADAM SUMAIRA
Submitted By:
GHAYOOR YOUSAF
MBA, 1st Semester, Roll No. 7
Institute Of Computer & Management
Sciences PESHAWAR.
Company profile:

Name: Ice Age


The Healthy Ice Cream Parlor

Date of Launch: 1st June 2009

Product: Sugar free and Fat free healthy Ice Creams.


Health conscious desert.
Proposed Flavors: World famous Vanilla and 20 different
mouth watering flavors.
Project: Manufacturing and selling of healthy sugar free
and fat free Ice Creams. Specially made for health
conscious and sweet tooth people.

Founded in N.W.F.P, Peshawar, Ice Age Ltd.. company is setting


up an Ice Cream manufacturing and selling parlor. The project will
have great significance in the present day context of increasing
weight and illness among the youth as well as adults due to
increasing fat and sugar intake due to increasing content of
sweetener in the Ice Creams and juices.

The manufacturing of all types of ice creams will be done at its


production site and then will be transported to its parlors
established in the heart of the city. Ice Age Ltd.. is entering the
Pakistan 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 Ltd.. has kept into account the income and
behavioral factor of the Pakistan buyers while designing the
products. It is important for the company to understand the
consumer behaviour before it goes into such a market. The
Pakistani consumer for the first time will have a premium product
which is eco-friendly, healthy and affordable.
The Model used for preparing the marketing strategy by Ice Age
Ltd.. in the Peshawar Market

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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.

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
consumer’s mindset is of vital importance as perception of
individuals at the buying stage of various brands is
unpredictable and ever changing.

The

concept is to make the product different from those of its


competitor. When we look at the Peshawar Ice Cream market we
see that the leader’s naturals have constantly maintained its
market leadership by constantly differentiating on the basis of
new flavors.

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 Pakistan.
“Ice Age” – 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 as well as youth and people who suffer
from illness like diabetes.

Ice Age is a healthy ice cream parlor which targets the


higher middle class and rich class of the society.
Due to the variety of flavors and the specialty of being
sugar free and fat free makes the Ice Age Ice Creams
more popular among the fitness and health conscious
people.
Ice Age targets the market where people are ready to buy
healthy junk food due to their taste buds and the fact that
Ice Age Ice Creams are totally fat free and sugar free with
the same original taste.
Hence Ice Age Ice Creams targets the market where
people from age group 1 year to 80 years can enjoy their
favorite ice cream keeping in mind health conscious
people, diabetic people, young people, etc…
Segmentation variables
Several variables differentiate consumers who prefer different
kinds of

Desserts, 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.

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. There are also certain people who have high
metabolisms or engage in strenuous activity, leaving them with
less worry about weight gain. Frequent or “heavy” users of frozen
desserts would a great target, but this group is not readily
identifiable and reachable—these consumers are not likely to
have distinct media habits or to frequent particular stores, for
example. Serving size preference is an important issue, but is
addressed already to some extent by price sensitivity.

Ice Age Ltd… introduces Ice Age Ice Creams – The


Healthy Ice Cream Parlor which brings to you a new
generation of ice creams.
There are many choices in today’s ice cream case to suit
a wide variety of consumers taste. There is plenty of
information on food labels, but what does it really mean?
Where Ice Age does stands??
Ice cream is a frozen food made from a mixture of dairy
products, containing at least 10% milk fat.
"Reduced fat" ice cream contains at least 25% less total
fat than 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 fat per serving
"Nonfat" ice cream contains less than 0.5 grams of
total fat per serving.
Introduction of new product in the market

Completely fat free ice cream

98.99% sugar free ice cream

Eco-friendly

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 and fat
free concept

More than 30 different flavors to choose from

Same taste
Ice Age Ltd… will be establishing its marketing
throughout Peshawar. Ice Age ice creams being an
entirely new product in the market will initially operate
only in Peshawar till further expansion.
Ice Age ice creams being fat free and sugar free requires
some extra indegrients and products which increases the
cost of the ice cream by 15 – 20 %. The segmentation of
Ice Age ice creams is done on the basics of “Demographic
segmentation” and “psychographic segmentation”.
Keeping this segmentation in mind the management has
taken steps to open its shops at the following places in
Peshawar:
Saddar Cantt

Shami Road

Kissa Khawani Bazar

Deans Shopping Mall

Avon Super Store


The main production of all the products will be done at
the main unit based at “Indusrtial Area Hayatabad” and
then will be transported to all its shops at different places
all over Peshawar.
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 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. Geo
Tv, Ary Digital,The Music and Aaj Tv 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 listeners actually
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.
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
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. Rana 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. Rana 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.

Ice Age Ltd… being one of its kinds, having a variety of


ranges in sugar free and fat free ice creams, the
management decided to launch such a unique product in
the heart of the Peshawar City: Saddar Bazar .
Since the first manufacturing and selling unit of the
company is set up and functioning in Peshawar, the
product launch was also held in Peshawar.
The launch of Ice Age Ice Creams Parlor was given to
Fountain Head Promotion and Event Pvt.Ltd… The launch
was held at “Industrial Area Hayatabad Peshawar on 20th
May 2009.
To promote our product in an entirely new market and
since our product is entirely a new concept in the market
So 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 lollywood 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.

In today’s world of ice creams, Naturals, Baskin and


Robbins, Gelato, etc… are the leading ice cream parlors
in Peshawar. Their combined sale figures through-out the
month is about 1,50,000 units. Their advertising
strategies, sales promotions, offers, etc… are not on a
continuous stretch because these parlors are in the
market for sometimes……
Ice Age ice creams being on a starting stage, will have a
good advertising strategies, sales promotions, offers to
attract more customers and to make them more familiar
to our brand. Due to our new technique of production and
distribution, even after entering the market on platform
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 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 ice
creams but with a dash of health.