You are on page 1of 24

Qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvb

nmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjk
lzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvb
ertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm
rtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjkl
zxc
vbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmq



Group Project of
Savoy I ce-cream
















Page | 2


Course Name: INTRODUCTION TO MARKETING (MKT202)
Sec: 19

Submitted By:
Mohammed Jannatun Nayeem 1211191030
Sabrina Humayun Upoma 1110574030
Shaba Tamanna Tonny 1020687030
Nusrat Jahan Nitu 1210554030
Md. Nashwan Hussan 1220875030
Rumaesa Mandana Rob 1130611630


Submitted To:
Tasmia Ekram (TsE)
Lecturer
School Of Business


Date of Submission:
17 -12-12
Page | 3

Letter of Transmittal


Tasmia Ekram (TsE)
Lecturer,
School of Business
North South University
17-12-2012


Dear Madam,

We are assigned the term paper to do an analysis on the market plan of Savoy Ice-cream.We
are submitting to you the report, due December 17th, 2012, that you requested. We completed
the report on schedule and met all your proposed objectives. We would like to thank you for
offering the opportunity to work on this topic. The information in this report is related or
compared (wherever possible) to what we were taught in class.

We hope that our work will prove to be satisfactory. Thanking you in anticipation.

Sincerely,
Mohammed Jannatun Nayeem
Sabrina Humayun Upoma
Shaba Tamanna Tonny
Nusrat Jahan Nitu
Md. Nashwan Hussan
Rumaesa Mandana Rob



Page | 4

Table of Contents
Serial
No.
Topic Page
No.
01 Acknowledgement 06
02 Executive Summary 07
03 Marketing Mix:
Product
Price
Distribution(Place)
Promotion
08
08-10
10-13
13-14
15
04 SWOT Analysis:
Strengths
Weakness
Opportunities
Threat
16
16-17
17
17
18
05 Consumer Profile:
Target group of Savoy ice-cram
Competition Advantage
When and where can buy
Purchase habit and lifestyle
Emotional Barriers
18
18-20
20
20
21
22

06
Integrated Marketing Communication

22
07 Recommendation 23
08 Conclusion 23
09 References
24

Page | 5

Acknowledgement


One of the most pleasant parts of submitting a term paper is the opportunity to thank those who
have contributed to it. Unfortunately, the list of expression of thanks- no matter how extensive is
always incomplete and inadequate. These acknowledgements are no exception.

Our first thank goes to the almighty Allah for bestowing us the patience and courage to finish
this huge task within its deadline.

Thanks must go to the team members, whose unflagging patience and astounding capacity for
creative work, and long hours made the project both possible and successful under the pressure
of knocking deadline.

In addition, thanks to those who has given us important information and various advises about
our project.

At last, we sincerely acknowledge our debt to Tasmia Ekram, our honorable faculty, for her
valuable counseling towards the improvement of the project. Without her encouragement, this
would not have been possible.








I ntroduction

Page | 6

Having food is necessity of human being and taking various kinds of ice-cream product is
todays fashionable frozen dessert, more than necessary. This ice-cream industry has a high level
of market segment, variety of products, and a number of companies. Food and frozen dessert
industry represents frozen, fresh, chilled and long shelf-life food and ice-cream product. In this
time the ice-cream companies have a hard core competition to create the best place in market as
well as to establish their very reputation among the customers what makes them regular in
market place. Savoy Ice-cream brand is owned by Sena Kalyan Sangstha (SKS) Group of
industries. It started its journey in March 1995 with a factory in Tejgaon, Dhaka.

Product ranges of the company include all the basic designs and flavors of the industry.
However, the company has not been much of an innovator in the industry. Their product quality
is substantially low than that of other players and they price their products at 10-15% lower than
the other competitors. The company imports raw materials mainly from Europe. The general raw
materials are Euro cream, Skimmed Milk Powder, Cocoa Powder and Flavour (Vanilla, Mango
and Strawberry), Colour (Yellow, Red, Chocolate and Green), Ripple Sauce, Cheney Fruit, Palm
Kernel Oil, Anhydrous, Butter Oil (Ghee) and Sugar etc.

Savoy ice-cream product is very new if we compare with others in market. So, first of all it
should follow an outstanding launching way including with normal advertisement and our exact
target market. As in survey the youngsters are the mostly interested to buy ice-cream and they
are the regular customer so before doing anything kept their choice and priority in mind.

Day by day the number of regular eating ice-cream consumer is increasing. So Savoy always
tries to take an extra care for them. There are several key trends which are looking towards of
health and wellness, indulgence, convenience and ethical issues which effect on various flavors
of ice-cream products.



Executive Summary
Page | 7


This report is about Savoy Ice-cream which is an ice-cream company that product a high volume
at a lower price. It has divided its product categories by various flavors and packages.
Consumers of Savoy ice cream are mainly urban kids in the age group of 5-14 who mainly
consume normal sticks, cups, cones innovative fillers and water ice creams; there is urban youth
in the age group of 15-24 who consume premium and extrusion sticks and cones and urban
mothers in the age group of 25-35 who are the decision makers for kids and family ice cream
purchases. The consumers can be segmented based on their desired satisfactions from ice cream
occasion, portrayed personality traits of ice cream bands and the occasions when they consume
ice cream. Analysis shows there is scope for market development and penetration in the country.
There is also scope for ice creams that are health conscious and nutritional in the industry.
Products or of quite high quality in the Bangladeshi market but price is still out of reach of rural
and lower people who belong to low disposable monthly income group. Distribution is mainly
done through refrigerated trucks alongside use of carts in the country. Boutique format players
serve at their premises, ice cream and other dessert items to offset seasonality of ice cream sales.
Promotion in the common format is mainly in newspapers and normal billboards along with
trade based consumer promotions and trader schemes.





The Four Ps Of Marketing Mix
Page | 8


Figure: Four Ps of Marketing
Product:
Savoy ice cream has entered the Bangladesh market with a new ice- cream product, which
will add new innovation to their product line. Current production capacity of Savoy in the
common format ice cream segment is estimated to be as follows:



Name

Capacity
(Ltrs/ day)


Total
Production
('000 Ltrs)


Required
Capacity
(at 300
production
days )


Estimated
unutilized
capacity
(Ltrs/ day)


Savoy

1560


259.85


866

694

Table: Production Capacity of Savoy ice-cream
Core Product:
Page | 9

Savoy ice-cream including normal premium and cup, stick and family pack items.

Actual Product:
Product Features: It is an ice-cream product which will come in different flavors like
Vanilla, Chocolate, Strawberry, Ripple and Mango. It is a healthy nutritious and
refreshing ice-cream which will be available in a ready to different shape. It is
beneficial to health as it contains Cup, Cup Mini, Cone, Choc-bar, Vanilla cup, Vanilla
lolly, Kulfi etc.

Augmented Product:
People can call us to give feedback about ice-cream. Savoy ice-cream launch a website
where customers can share problems, give feedbacks, make understand defects, flaws and
give us innovative product ideas.


Product Quality:
Top quality raw materials,
Modern production equipment,
Well trained and dedicated staff,
Effective quality assurance,
Optimal storage condition,
Optimal inspection of raw materials & ingredients,
Commitment to adhere the BSTI regulations.


Packaging:
Page | 10

Savoy ice-cream has available in both cups and sticks. Cup has available in Vanilla,
Strawberry, Mango; Snow ball will be available in varied sizes. Package will be colored
according to their flavors. The label on the ice cream will have information on the
amount, expiry date, manufacturing date, nutrition facts, certifications, ingredients,
contact info, logo of the brand and picture according to the flavors.

Labeling:
Cone and cup include the name of ice-cream and its flavor and its logo. It will also
consist Ingredients, nutritional benefit, weight and expire date. It will also consist of the
name of the manufacturer of the product.

Price:
Ice-cream product strategy is a cost-based one. Which means the cost of making with the
target profit margin will accumulate our prices of the range of products. It is a profit
oriented approach. Savoy ice-cream set its price so that the cost are dealt with achieve
target profit means main mission is to cover-up our cost and earn huge revenues so that
they can earn a huge profit. The firms have capability to affect the market price to be low
as profit margin is very high. If Savoy reduces the price of an item below the prevailing
price level in order to increase its sales, its competitors will fear that their customers will
go away from them to buy ice cream. To retain their customers they will be forced to
match the price cut of Savoy. Historically this has been proven to be true. However, due to
price sensitivity, companies cannot drastically increase price even if they provide higher
quality of product.

Savoy ice-cream has charged different prices for different ice cream product form and size.
It initial pricing will start at 10 Tk to 190 Tk. If we manage to pull these costs at our target
sale, we can achieve our target profit.

Pricing Strategy
Page | 11


Product Type

Price
Cup 25 Tk
Snow ball 20 Tk
Cone 25 Tk
Choc-bar 15 Tk
Container ( 2 liters) 100 Tk
Family packs (2 liters) 150 Tk

Product Costs and Pricing:
Points to consider for estimating product costs:
Fixed Costs: Fixed costs will mainly include the rent of the factory.
Along with that, there will be costs of the supervisors salary.
Variable Costs: Variable costs include direct materials and direct labor
costs. Direct materials include Euro cream, milk, powder, cocoa powder,
ripple sauce, cherry fruit, butter oil, sugar.
Total Costs: Summation of the fixed and variable cost.
Competitors Approach:
An ice cream pricing strategy should take into account the prices that your competition
is charging. This does not mean that the neighborhood ice cream truck should charge
more because the upscale ice cream shop has a more expensive product. Rather, the
ice cream truck catering to a cost-conscious clientele should adjust its prices relative to
other businesses targeting the same market while the artisan ice cream shop might
Page | 12

even raise its prices to signal that its owners believe their product to be worth more
than the competition.
Consumers Perceptions Of Value :
Ice cream can be an everyday treat or an artisan luxury. An ice cream pricing strategy
should communicate to customers whether your products are accessible comfort food or
treats for sophisticated eaters. Some customers will select a brand of ice cream because
of its low price while others will be drawn to a higher-priced product because of their
perception that cost correlates with quality. Your choice of how to price your ice cream
will reflect the type of customer you wish to attract.

The Product Life Cycle:

As the product is new and the market is very much saturated the product must be top
class and of higher price. This would help to quickly cover up the development costs.
And as said earlier, higher price will also give a certain prestige to the product. This
would help to capture the market easily.


Savoy is in the introduction stage of the product life cycle. This is the stage in which
sales are quite low but starting to rise and profits are initially negative due to
Page | 13

promotional activities and other expense before they start to rise. Savoy is in this stage
because the market for ice-cream product is absolutely new in Bangladesh, meaning, we
are the first ones to introduce such ice-cream product in the market.


Distribution (Place):
Place is a term that has a variety of meanings in a dictionary sense, but which is principally
used in a geographic sense as a noun to denote location, though in a sense of a location
identified with that which is located there.

In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a
geographic location, an industry, a group of people (a segment) to whom a company wants
to sell its ice- cream products or services, such as young professional women (e.g. for
strawberry flavor), family event (e.g. litres box with various flour).


Distribution Process:
Mainly common format ice-cream is distributed in two methods that are directly to
retail shops and through hawkers with ice cream carts/ trolleys.

Distribution details of all the companies are provided below. However, detail of Savoy
is not available as they are mainly milk producer and they have no dedicated ice cream
cabinet for retail stores and currently they are distributing ice cream in Dhaka city,
Chittagong, Comilla, Josser.



Company Distribution
Method
Frequency No. of cabinets
Page | 14







Table: Distribution Method of Market Players


Retail Distribution:
The general distribution that is followed by Savoy is that distributor sends large
refrigerated trucks dedicated to specific territories. These trucks are accompanied by
small refrigerated vans. Main road side shops are served directly from the large truck
and shops that are inside small streets are served by the small vans.

General branded freezer contract policy with Savoy is that traders have to pay BDT
5000 to take a freezer. Maintenance of branded freezers is responsibility of the company
but electricity bill is paid by shopkeeper. Savoy gave away their freezers for free;
however, they ensured safety of their freezers by checking background of the
shopkeepers.


Promotion Mix:
Promotion is one of the four aspects of marketing. Promotion comprises three subcategories:
Personal selling
Sales promotion
Trade Promotion


Savoy

Company

1to 2 times a fortnight


176
Page | 15

Personal Selling:
It is very effective as here for Savoy ice-cream can have different outlet with the
retailers. They distribute their various flavor of ice-cream in selective primary schools
and local market. In personal selling, they distribute their ice-cream at low price for
middle class, low income people.
Sales Promotion:
Sales will be promoted by encouraging sampling, contests etc. the target segments will
be given free samples like we will do promotional campaign in top universities across
the country and top school were we will give them free sampling for just 2 days there
encourage customer to buy product, they buy ice-cream product. Although the cost is
normal in this process but the revenue earn when this people will buy our product at the
low price will be very high compare to this cost.

Trade Promotions:

Trade promotions are mainly given to Highest retail purchasers and also based on
time bound trade schemes where various slabs of purchase amount are mentioned for
different prizes. Savoy has a purchase slab scheme where first prize is table fan. It gives
special sales commission to their highest purchasers (around 5%).

SWOT Analysis
The SWOT Analysis is a useful tool for understanding and decision making for all sorts of
situations in business. SWOT is an acronym for Strengths, Weakness, Opportunities, and
Threats.
Page | 16

Strengths
Financial condition
Good quality
Well trained staff
Low pricing

Weakness
Decision making process
Taste of ice cream
Weak management
Opportunities
Large Young population and long
hot summer
Growing ice cream market
Threats
Intense competition
High price of raw materials
Political Instability

Strengths:

Financial Condition:
Savoy Ice Cream Company is financially backed by Shena Kalyan Shangstha, so thats
why the financial condition of the company is very strong.
Good Quality:
Savoy delivers a very good quality of ice cream to its consumers. This feature works as
strengths for the company.
Well Trained Staff:
The staff of this company is very well trained. After the recruitment of new staff Savoy
also provide some training programs to the staff for their improvement.
Low Pricing:
Savoy is following the low pricing strategy so that they can offer their ice cream to their
consumers at a lower affordable price.


Page | 17


Weakness:
Decision Making Process:
Savoy follows the chain of command process in decision making process. So it makes
the process very slow and lengthy.
Taste of I ce Cream:
The taste of savoy ice cream is not that good, its taste is average. It lacks the consumer
appealing taste.
Weak Management:
The management process of Savoy is very weak. This is one of the main reasons why
they are failing to succeed in the market.

Opportunities:
Large Young Population and Long Hot Summer
The target market of the Savoy ice cream is youth generation, which is now getting
large day by day. As we know that in our country summer lasts for a long time and ice
cream is very preferred in this season, so its a big opportunity for any ice cream
company.
Growing I ce Cream Market
Ice-cream is going to be more popular in young people in the country. Even older
people likes ice-cream in the hot weather. So the ice-cream market is expanding day by
day.


Page | 18

Threat:
I ntense Competition:
As ice cream market is expanding day by day, the competition among the competitors is
getting tough as well. Every competitor is coming up with new idea everyday to sustain
in market.
High Price of Raw Materials:
Price of raw materials is getting higher very rapidly. It can increase the cost of
production and decrease the profit margin, so it is a threat for Savoy ice cream.
Political I nstability:
Political instability can be a big threat for any business company. It can destruct the
business activities.


Consumer Profile
Primary consumer Teenagers and young adults
Secondary consumer

Family consumer for eat out
Income group Low income group
Geographic Area Selected area
Rush time Afternoon

Target Group Of Savoy I ce-Cream:

Who are the consumers of savoy ice cream? This question does not have a clear answer. Ice
cream is a food for all. It is the only food consumed by a human being at less than 0 degree
centigrade temperature and people of all ages feel indulged to have it.
Page | 19

Geographic Group:
Branded ice cream remains an urban product. Geographically branded ice cream has not
reached urban and semi urban areas. Savoy ice cream provides ice cream in Dhaka,
Chittagong, Jasor, Comilla, Tangail




Figure: Target Geographic Area


Target Age Group:
Age wise grouping of target consumer is as follows
Kids in the group of 5-1
They mainly consume normal sticks, cups, cones innovative fillers
Youth in the age group of 15- 24
They consume premium and extrusion
Family or mothers in the age group of 25-35
They determine the family purchase


Dhaka
70%
Chittagong
20%
Comilla
10%
Geographic area
Page | 20


Figure: Age group


I ncome Group:
Savoy ice cream target lower income group. Price of Savoy ice cream is so low. This is
the reason why Savoy ice cream is failed. Savoy ice cream grabbed suburban areas with
low price.

Competitive Advantage:
Why do consumers consume Savoy ice cream? There are many positive and negative sides.
People can buy Savoy ice cream for its lower price but problem is Savoy product quality is
so low.


When And Where Can Buy:
Savoy ice cream is not available everywhere. Savoy ice cream followed selective
distribution. Savoy ice cream is a variety seeking product. Savoy ice cream encourages
variety seeking by offering lower price.
Kids
30%
Youth
50%
Family or mother
20%
Age group
Page | 21


Purchase Habit And Lifestyle:
There are some common habits of consumer when they purchase Savoy ice cream.
Common habits mean the consumer approach towards ice cream that is seen across all target
groups.
Savoy ice cream mainly seen as a dessert.
Savoy ice cream purchase is commonly a planned event.
Savoy ice cream is purchased from nearby shops.
Savoy ice cream has not so many flavors.





Page | 22

Emotional Barriers:
Undisciplined
Childish
Artificial image
Very high in calories.


I ntegrated Marketing Communication
The concept under which a company carefully integrates and
coordinates its many communications channels to deliver a clear,
consistent message".
One high level and popular company must have a strong marketing
communication system.
But Savoy has not many communications channels. They have only 8 or 9
pickup vans to send their products in many places. Their business is limited
in Dhaka, Chittagong, Maymansing , Jamalpur and jossor . In Dhaka their
production is more than other cities.
Savoy Company has no billboards and no advertisement to increase their
production. They have only some stickers which is very small in size and
cartoon shape which is only attractive for children. They have not much
asset to advertise their product or introduce their ice- cream to others
people.
They have also no sellers promotion.



Page | 23


Recommendations
Though Savoy ice-cream company is the part of Shana Kolyan communities it should be
afford the communities. Some problem includes his company like decision making, financial
support, technical support etc. Firstly they need to maintain (4ps) then environment
analysis like SWOT analysis ,and develop the company communication. They also help
from others developed companys business plan.

Conclusion

Based on the above analysis, Savoy ice cream has good prospect in Bangladesh. It is still a
growing market with opportunities for entrants. With the barriers of entry, it needs to consider its
priorities. It being a company traditionally needs to acquire expertise in cold chain distribution
and has to invest a lot of money to rip the benefits of the industry. However, to initiate company
can take regional support and acquire resource expertise. The company should enter the business
as soon as possible since there is potential threat from competitors to introduce more ice creams
and also with potential of the industry consider entering into the industry too. The marketing
plans start off by providing the overall picture of the companys marketing strategy, and then
break down into details about how it will realistically achieve such goals and objectives. Another
smart technique to use in a marketing plan is to delegate responsibilities to specific people within
the company. Although there is much competition in the ice-cream market today, Savoy believes
surely be appealing to the kids. It tries to identify a gap in the market, and is positively aiming
towards being successful.

Page | 24


References:
www.bdtradeinfo.com/yellowpages/des_data.asp?subcategory_id...
www.banglayp.com Bangladesh Dhaka

You might also like