SALES STRATEGY FOR INDIA

Presented By :Nishtha Srivastava Rishi Bhatia Sameer Choudhary Sarthak Gupta

COMPANYS PROFILE

Joint venture between Maharashtra Dairy Products Manufacturing Pvt. Ltd. & US Based subsidiary of Allied Domecq PLC .

Baskin Robbins setup shop in India in December 93 Opened first Ice-cream parlor in Mumbai. Targeted upper income households. Setup parlors in major cities like New Delhi and Mumbai.

COMPANYS PROFILE (CONTD. 1)

Size of the parlor was 1500-2000 sq. ft initially.

Network expanded to 127 franchisees in 60 cities. Sourced its raw material from US. Company used Jamoca Coffee beans, Gelatin and Marshmallow as Ingredient.

But company stop using it as importing Jamoca Coffee was against government policy and gelatin and marshmallow has animal origins in it.

The price of the ice-cream was much higher than average

Indian ice-cream.

They failed to generate substantial sales over the years.

RESTRUCTURING

Change in Top Management as Pankaj Chaturvedi takes over as CEO for India & South Asia.

Unviable Outlets in C grade cities were closed down. Reduced its network to 110 franchisees and 35 cities. Size of Stores were reduced to 250-300 sq. ft.

Targeting Industries such Hotels and Airlines which

generated around 30% of its total business.

Targeted youth belonging to the upper income category.

NEW STRATEGY

Concentrated on A Grade Cities for further expansion. A new concept was planned-Store of the Future (SOTF) which include:

Redesigning of 70% of its outlets to provide a New Ambience. Outlets like Kiosks - Low Investment of 3 Lakh-1 Million.

Ventured into Ice-Cream Cakes in Mumbai with home delivery facility. Foraying into pre-packed ice-cream cups.

Sold through Malls, Supermarkets and Multiplexes.

Launching a new Distribution Point by way of Shop-inShop ice-cream counters.

PROMOTIONAL STRATEGIES

Rs. 10 million - Allocated for Incentives to staff as well as for promotion leaflets.

Joint Promotions with Multiplexes.

Planned to launch television commercials. Baskin Robins launched two schemes:

Brochure Scheme Customers were offered a 50% discount on product of Rs. 299.

Value Additive Schemes Offered free scoops of Ice-cream

with certain products.

PROMOTIONAL STRATEGIES (CONTD.)

Marketed its products with Pizza hut.

Company reduced the prices of its Products.

Applied the idea of offering Ice-cream vouchers as Corporate

Gifts.

Vouchers were also given to Individual Customers. Important decision - Outsource its Distribution Network. Special Team was placed for efficient and organized Supply Chain.

TRAINING

Focused to improve Customer Service Levels by Training. Developed an Integrated Training Module

Format is based on its International Module

Training Module included :
Upgrading

of Existing Skill Sets

new Attitudes

Development of

Planned to Outsource Module on General Skills like Hygiene, First Aid, etc.

MARKET SCENARIO

Companys First Net Profit in 11 Years in 2003-04. Domestic competitors Mother Dairy, Amul, kwality Walls had substantial brand equity.

Domestic Players also tuning up their Distribution

Chains and Product Mixes.

Its focus on capturing market share in 15-25% growth in

the Ice-Cream industry.

CASE SUMMARY

Initial Strategy adopted by Baskin Robbins, in India which did not yield results.

Restructuring and Expansion of the Distribution Network undertaken by the Company.

Promotion Methods to increase Sales. Other measures like Training of Franchisees have also been

discussed.

ISSUES

Challenges in Global Ice-Cream Sales

Perceived as a Highly Priced Premium Product Not easily accepted by the masses

Globally, India has Lowest per capita consumption of Icecream

Importance of Alternative Distribution Channels

Effect of Sales Promotion Strategies

CASE QUESTIONS
Q 1. Despite having operated in India for a decade,
Baskin-Robbins was able to make a profit only in

the 11th year. What were the mistakes the

company made in its understanding of the ice-

cream market and the psyche of the Indian

consumer?

SOLUTION FOR QUESTION 1

Initially it targeted the upper income households. Set up its parlors in posh localities. Parlor size. Ice-creams priced much higher. Tried to maintain same standard in India. Lack of volume based business.

CASE QUESTIONS (CONTD.)

Q 2. Baskin-Robbins achieved a turnaround in its business by following an aggressive distribution strategy to achieve higher sales. Briefly highlight the various measures taken by the company. What could Baskin-Robbins do in the future to help sustain its profit levels?

SOLUTION FOR QUESTION 2

Complete Restructuring . Closing Unviable Outlets. Reduced Store Size. Targeted Industries such as Hotels and Airlines.

Targeted Youth.
New concept called SOTF was planned. Store Redesigned to provide New Ambience. Stores took the form of Kiosks. Ventured into ice-cream cakes in Mumbai.

SOLUTION FOR QUESTION 2 (CONTD.)

Forayed into pre-packed ice-cream cups. Sold its products through Malls, Supermarkets & Multiplexes.

Launched Shop-in-Shop Distribution Counters.

Launched Brochure & Value Additive Schemes.

Entered into marketing arrangement with Pizza Hut.

Reduced Price to Focus on Large Customers.

Outsourced Distribution Network.