Report on

Supply Chain Activities of Polar Ice Cream

Report on
Supply Chain Activities of Polar Ice Cream
Course Name: Network Relationship and Supply Chain Management Course Code: MKT 4205
Prepared for
Jannatul Mawa Nupur
Assistant Professor in Marketing Department of Business Administration Northern University Bangladesh
House 54, Road-4/A, Dhanmondi, Dhaka-1209

Prepared by
Md Showkat Ali ID: BBA080302856 Md Towhidul Alam ID BBA110103944 Department of Business Administration Northern University Bangladesh

Section: A Date of Submission: Sunday, April 08, 2012

Letter of Transmittal

Sunday, April 08, 2012 Jannatul Mawa Nupur Assistant Professor in Marketing Department of Business Administration Northern University Bangladesh Dhanmondi, Dhaka

Subject: Report on Supply Chain Activities of Polar Ice Cream Dear Sir, I am pleased to submit the report on Supply chain activities of Polar Ice Cream to you as assigned as a requirement for fulfillment of the course Network Relationship and Supply Chain Management (MKT 4205). This report has been tried best to analyses the supply chain activities and distribution channel of Ice Cream. I wish the methods that have been used in this report would provide a clear picture about the supply chain on Polar Ice Cream. I believe that this report has enriched both my knowledge and experience. I will be very glad if the report can serve its actual purpose and I am ready to explain anything to you if you feel necessary. Sincerely Yours, Md Showkat Ali ID: BBA 080302856

ACKNOWLEDGEMENTS
Expressing one's appreciation should never be a meaningless task but, rather, a moment filled with heartfelt sincerity. I have been throughout the topic, and especially during the stages of thesis writing, fortunate to have been surrounded by individuals who have supported me on multiple levels. I also used lot of information from many websites and reports. I would be remiss if I did not express our gratitude to each of them. I would like to express our deepest gratitude to Allah for everything He has done to me. Then, thanks towards Jannatul Mawa Nupur who encouraged my interest in this study. In addition to the support she gave personally and academically. I also give thanks to the authority of Northern University Bangladesh for offering us such a good environment of education where I am not only learning but also expressing my feelings and expanding my knowledge through different types of assignments, practical works and researches. Last but not least, I must send my deepest gratitude to my parents who never cease to inspire me.

Executive Summary
Dhaka Ice Cream Industries limited pioneered in the first hygienically produced and packed Ice Cream in Bangladesh, with the important ingredients mostly from renowned manufacturer of Australia, European etc. Prime concern of Polar ice cream is the food safety to the valued consumers. It gives the clear understanding to Polar Ice Cream and the overall supply chain of this
product. The base of this report is the external environment of Polar Ice Cream. The report has been developed basically on secondary data.

Table of Contents
4

SL. No
Acknowledgement Executive Summary

Title

Page No:

Chapter 1
1.0 1.1 1.2

Introduction Company Profile Mission values Chapter 2

2 3 3

2.0 2.1 2.2

Supply chain activities of Polar Ice Cream Products Food Safety & Quality Policy Chapter 3

4-6 7 7

3.0

SWOT Analysis Chapter 4

4.0

Recommendation & Conclusion

10

Chapter 1 Introduction of the report

Introduction
5

The polar brand of Ice Cream Came into being in 1987, Dhaka Ice Cream Industries limited pioneered in the first hygienically produced and packed Ice Cream in Bangladesh, with the important ingredients mostly from renowned manufacturer of Australia, European etc. Prime concern of Polar ice cream is the food safety to the valued consumers. Polars range extends to a wide range of coated ice creams, cup ice creams, stick ice creams and ice lollies in an array of delicious flavours and tastes. With cold hubs in Dhaka, Gazipur, Chittagong, Comilla, Sylhet, Bogra, Rangpur, Rajshahi, Khulna and Jessore the distribution of Polar Ice Cream can be found almost everywhere in the country. For long distance delivery points we have commissioned freezer vans.

The consumers happiness is our happiness.

Company Profile
Company Name: Dhaka Ice Cream Industries limited. Business Type: Manufacturer Product/Service: Ice Cream Address: Dhaka Ice Cream Industries Limited 80, Shaheed Tajuddin Ahmad Sarani, Tejgaon I/A, Dhaka-1208, Bangladesh.
6

Number of Employees: The number of employees in Head Office more than 65. Company Website URL: http://www.polarbd.com Year Established: 1987 Ownership Type: Individual (Sole proprietorship) Main customer: Local customer in Bangladesh.

Our Mission
To become a unique organizaton by producing and selling quality products through continuous improvement and add value to the stakeholders.

Our Values
Value for Customer Customer satisfaction through premium quality products and services at a competitive price. Compliance and Improvement Always comply with statutory and regulatory requirements following ethical practices in all our business dealings. Initiatives and Improvement Initiate continuous improvement and development of process, product and services. Culture of Discipline Build a respectable winning team by practicing a culture of discipline in all our actions.

Chapter 2

The Supply Chain Activities of Polar Ice Cream Milk powder From varieties company of Newzealand Supplier From varities company of AU, NZ, GR
7

Nuts & vanilla From varities company of Australia Chocolates From varities company of Australia Sticks From varities company of Australia

Manufacturer Polar Ice Cream Ltd

Invento ry

Distributo r More than

Retailer More than 2000 Consum er

Tetra packs From varities company of Germany

SUPPLIERS: Suppliers of Polar Ice Cream provides for items ranging simple nuts coatings, and other basic raw materials to high tech ice cream processing machines. Almost all ingredients are supplied by foreign suppliers. The main ingredients such as milk powder, nuts, chocolates, sticks, tetra packs, various essences and flavors are imported from Australia, New Zealand, Europe etc. Machines are imported from Denmark, Italy and Switzerland. An important note on suppliers is made here by the Polars Marketing Manager. According to him, local suppliers are far less reliable than foreign suppliers both in terms of quality of goods and the kind of services they provide. Foreign suppliers are more reliable, professional and devoted to commitments. Such is its faith on foreign suppliers that Polar imports all items though it is time consuming and there are costly import related formalities.
8

Manufacture Process: The items may be classified as dairy and non-dairy ingredients. The dairy items include sweet cream, frozen cream, plastic cream, unsalted butter, butteroil, whole milk, whole milk powder, condensed whole milk and evaporated milk. The non-dairy items include sugar (cane sugar, beet sugar and corn sugar), stabilizers (gelatin or sodium alginate), emulsifiers (glycerol monostearate), flavours (vanilla, chocolate, strawberry, pineapple, lemon, banana etc), colours (yellow, green, pink depending on the flavours), egg solids, fruits and nuts (apple, banana, mango, grape, almond, pistachio, cashew, walnut etc.).

1. 2. 3. 4. 5. 6. 7.

Blending of the mix ingredients Pasteurization Homogenization Aging the mix Freezing Packaging Hardening

DISTRIBUTORS: Reaching our target consumers in the most efficient and effective way by becoming benchmark supplier in the ice cream industry, within strategic channels in every market place where we do business. The activation of the distribution channels proceeds from their factory at Tejgaon Industrial area in Dhaka. After production, ice cream products are stored at the central warehouse of the factory at a temperature between 30 0 degree to -350 centigrade where it is stored in a Store. With cold hubs in Dhaka, Gazipur, Chittagong, Comilla, Sylhet, Bogra, Rangpur, Rajshahi, Khulna and Jessore the distribution of Polar Ice Cream can be found almost everywhere in the country. For long distance delivery points we have commissioned freezer vans.
9

CUSTOMERS: Being the major source of survival and profit, customers form the most important component for an organization like Polar. Polar considers customers as being their life-blood of survival and is taking the maximum innovative efforts that can be utilized for utmost customers satisfaction. Customers here can be segmented to family, kids, teenagers of high end, mid end and low end of the market. Changes in the number and type of customers results in a dimension of opportunities and threats. Polar operating in such ever-changing world of tastes and preference pays heed to customers choices and their attitudes. They, very keenly take on customers advice, try and amend as well as add new dimension to their business in order to ensure survival in this highly competitive industry.

COMPETITORS: One of the most important forces that always keep an organization on guard is its competitors. Competitors are organizations that produce similar goods. In the context of Polar, Igloo, Kwality, Savoy, Milk Vita and others can be held as competitors. In terms of their parlors Moven-pick, Baskin Robbins, and Club Geleto are their competitors. But surprisingly, the marketing management of Polar Ice Cream views these local brands as mere participants in the same industry rather than as competitors.

LOGISTICS:

- Temperature and quality control of incoming goods; - Shelf life control for incoming and kept in goods; - Goods rotation principals according to clients wish; - All kinds of handling operations - Providing reports about kept products, their shelf life and products rotation - Veterinary and dispatch services; - Clients representatives placement at storage

Product
10

Stisck
Chocobar Baby Choc

Chocodelight

Cup
Vanilla Mango Strawberry

Cone
Carnival

Kheer Ice Cream

Food Safety & Quality Policy

Dhaka Ice Cream Industries Limited is a BIG family. And we are its proud members. Our motto is to uphold the superior image of the company among its valued consumers. To maintain the highest possible consumer satisfaction, we the members of Dhaka Ice Cream Industries Limited are committed to deliver most hygienically produced Polar Ice Cream at affordable price. Polar Ice Cream is the first ISO 22000:2005 certified company in FMCG category in Bangladesh. We shall always comply with the statutory and regulatory requirements through continual improvement of Food Safety Management Systems (FSMS) and Teamwork.
Polar Ice Cream is the first ISO 22000:2005 certified company in FMCG category in Bangladesh.

Different forms of Advertisements:

Newspaper coverage comprises of the total publicity expenses, which includes advertisement displayed in papers such as Daily Star, Prothom Alo, Kaler Kantho, Nayadiganta and etc. They also need to note that ads on specific themes are created for special occasions. Polar Ice Cream has especially used TV commercial to attract their desired customer for buying their product. Other forms of advertising media including radio and other sources like sponsor a specific social social program.

11

Chapter 3

SWOT ANALYSIS
STRENGTHS Polar Ice Cream strengths are its ability to develop specifiable and empirically applicable corporate, business and functional level strategies and adapting effective measures, which enables them to secure a strong brand reputation.

WEAKNESS The major weaknesses of Polar Ice Cream comprises of Incurrence of high-level expenses in the Research and Development(R&D) sector. High operating and maintenance expenses resulting from the large size of the business. Excessive reliance on foreign suppliers.

OPPORTUNITIES
12

The best performing company will be the one that can generate the greatest customer value and sustain it. 1. Widening the product range. 2. Seeking faster market growth. 3. Exploiting new market segments.

THREATS Polar Ice Cream classifies its threats according to their seriousness and probability of occurrence. Hence, threats can be viewed as challenges posed by unfavorable trends or developments that would lead, in the absence of defensive marketing action, to deterioration in sales or profits. The major threats for Polar Ice Cream identify: Increase in domestic competition Threats can come in the form of competitors, but according to Polar Ice Cream, they do not view other ice cream companies as their competitors but as mere counterparts.

Chapter 4

Recommendations
Competitors are an important component of the task environment. Polar Ice Cream should pay heed to its potential competitors rather than treating them as mere counterparts. Polar Ice Cream should involve in backward vertical integration to lower the costs of value creation and lessen its reliance on foreign suppliers. For instance, incidence such as 11th September may hinder the flow of supplies in the production process when there is excessive dependence on foreign inputs.

Conclusions
From an extensive marketing analysis of the ideas and marketing concepts at work in the operation of Polar Ice Cream, it is possible to obtain an insight to the essential marketing practices adopted by the company. Evidently by virtue of its unique product attributes, high quality, exquisite and mouth- watering varieties of ice creams, attractive and distinct packaging, Polar Ice Cream has been able to ensure marketing excellence and enhance its competitiveness.
13

References:
www.google.com www.polarbd.com Personal interview

14