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					             Marketing Strategy
                             Of

Igloo Ice Cream: A Case study on Abdul Monem Ltd.
                                          MKT 412: International Marketing




              Date of Submission: 30 – 07 – 2008




Patuakhali Science and Technology University
           Dumki, Patuakhali-8602.
       Marketing Strategy Of Igloo Ice Cream:
        A Case study on Abdul Monem Ltd.




  Prepared By
  Yasir Arafat
  BBA 3rd Batch.



                                   Submitted To


                                   Department of Marketing,
                                   Patuakhali Science and Technology University




Patuakhali Science and Technology University
           Dumki, Patuakhali-8602.


           Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 1 of 14
                 Table of Contents



                    Particulars                                                  Page No.
Letter of Transmittal                                                               03

1. Acknowledgment                                                                   04

2. Abstract                                                                         04

3. Keywords                                                                         04

4. Introduction                                                                     05

5. Literature review of the study                                                   05

6. Objectives of the study                                                          06

7. Methodology of the study                                                         06

8. Limitation of the study                                                          06

9. Abdul Monem Ltd. at a Glance                                                     07

10. Marketing strategy of Igloo Ice Cream                                           08

11. Conclusion                                                                      11

12. References                                                                      12




                                                                             BBA Program
                                        Faculty of Business Administration and Management
                                                                     Level – 4, Semester –I
                                              Patuakhali Science and Technology University
       Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.      Page 2 of 14
                                                                                             Dumki, Patuakhali.



July 30, 2008

To

Department of Marketing
Faculty of Business Administration & Management
Patuakhali Science and Technology University
Dumki, Patuakhali.

Subject: “Letter of Transmittal”.

Sir,

I am graceful to you that you have assigned to submit the report on “Marketing Strategy of
Igloo Ice Cream: A Case study on “Abdul Monem Ltd.” as a partial requirement of the course
of “International Marketing”. To prepare this report, I tried my level best to make it perfectly.
It was too hard to complete but I enjoyed it very much. As my course teacher provides me this
topic, I tried to focus on all the related functions of it. The preparation session of making the
report was the most enjoyable time to me. I tried my best to mention all things.

This report focuses on the details of “Marketing Strategy of Igloo Ice Cream: A Case study on
“Abdul Monem Ltd.”. I thank you for allowing me the opportunity to complete the report. I
sincerely hope this report will live up to your expectation.


Sincerely yours




Yasir Arafat
BBA 3rd Batch.




                   Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 3 of 14
1. Acknowledgement
First of All I would like to thanks to my honorable course teacher Chairman (Acting),
Department of Marketing, Faculty of Business Administration and Management, PSTU, because
I cannot fulfill this report without his continuing support to me.

Next, I also thanks to my other course teachers in response to their great care to me. Above all I
want to give special thanks the members of Igloo Ice Cream because it is not possible to prepare
such a difficult task without their proper response and communicative attitude.


2. Abstract
There are large varieties of ice cream that are marketed in our country. This paper presents the
findings of a study conducted on Abdul Monem Ltd. (AML) to examine the marketing policy of
Igloo Ice Cream. The study reveals that AML focusing to this philosophy grew over the years by
providing the best services and highest quality products. Actually, this key philosophy has
remarked Abdul Monem Limited as the most trusted and one of the leading Companies in the
Country. Started as a Construction Contractor in 1956 and later diversified to food sector Abdul
Monem Limited proudly represents brands like Coca-Cola, Igloo, AmoMilk and Danone that are
the milestones to our quest to provide the best and quality products to our thousands consumers.
The Company is manufacturing and marketing Igloo ice cream, country’s leading ice cream
brand. Igloo is the pioneer ice cream brand in Bangladesh and started its operation in 1964 in
Chittagong.

Later, with the expansion of market a new factory was established in Shampur Industrial Area,
in Dhaka to cater the market demand. Presently, Abdul Monem Limited used the state of the art-
straight-line technology for manufacturing the ice cream. Actually, Abdul Monem Limited is the
first in the South East Asia to introduce this technology. The facility is producing nearly 20,000
Liters of ice cream each day that is distributed through out the country.

3. Keywords
Marketing strategy, Promotional Policy, Product Mix, Publicity, Advertising.




                    Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 4 of 14
4. Introduction
In the ice cream industries of Bangladesh, some numerous companies are existed. In these
industries, some fast changing phenomena are taking place. Among the changes, introduction of
the highly technical products of international standard, qualitative difference, packaging and
fashioning are prominent. In recent years, changing the climate to warm atmosphere the demand
of ice cream also increasing a faster rate. As ice creams became more fashionable, the formulas
for making them also became more and more complex. Igloo has the longest and widest
varieties of ice cream than any other competitors at the market. Igloo is offering a total of forty-
five items including normal, premium and novelty cup, sticks and family pack items. Igloo has
more flavors than anyone else in the Industry and is continuously launching new ice creams.


5. Literature Review of the Study

A marketing strategy is a process that can allow an organization to concentrate its resources
on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
A marketing strategy is most effective when it is an integral component of corporate strategy,
defining how the organization will engage customers, prospects and competitors in the market
arena for success. It is partially derived from broader corporate strategies, corporate missions,
and corporate goals. They should flow from the firm's mission statement.

Every marketing strategy is unique, but if we abstract from the individualizing details, each can
be reduced into a generic marketing strategy. There are a number of ways of categorizing these
generic strategies. A brief description of the most common categorizing schemes is presented
below.

Strategies based on market dominance - In this scheme, firms are classified based on their
market share or dominance of an industry. Typically there are three types of market dominance
strategies:

           o   Leader
           o   Challenger
           o   Follower
           o   Nicher

Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength.
Strategic scope refers to the market penetration while strategic strength refers to the firm’s
sustainable competitive advantage.

           o   Cost leadership
           o   Product differentiation
           o   Market segmentation

Innovation strategies - This deals with the firm's rate of the new product development and
business model innovation. It asks whether the company is on the cutting edge of technology
and business innovation. There are three types:

                    Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 5 of 14
            o   Pioneers
            o   Close followers
            o   Late followers

Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There
are a number of different ways of answering that question, but the most common gives four
answers:

            o   Horizontal integration
            o   Vertical integration
            o   Diversification
            o   Intensification


5.1. Nutritional Value of Ice Cream:
Makers of high-quality ice cream (sometimes known as gourmet ice cream) use fresh whole
dairy products, a low percentage of air (approximately 20%), between 16-20% butterfat, and as
few additives as possible.

Description     Quantity    Energy     Carbs Protein Cholesterol Weight      Fat                                   Saturated
                           (calories) (grams) (grams) (milligrams) (grams) (grams)                                    Fat
                                                                                                                    (grams)
  vanilla,
                 1 cup         270            32            5              59                 133       14           8.9
regular 11%
  vanilla,        1/2
regular 11%                   2155           254           38             476             1064         115           71.3
                 galon
  vanilla,
                3 fl oz        100            12            2              22                 50         5           3.4
regular 11%
vanilla, rich
                 1 cup         350            32            4              88                 148       24           14.7
  16% fat
vanilla, rich     1/2
  16% fat                     2805           256           33             703             1188         190          118.3
                 galon
vanilla, soft
                 1 cup         375            38            7             153                 173       23           13.5
   serve
6. Objectives of the Study
The main objective of this report is to meet up our course requirement of International
Marketing.

    To identify the Marketing Strategy of a large organization.

    To gather more knowledge about theoretical and practical.

    To analyze the pricing policy and pricing objectives of the Igloo Ice Cream.

    To identify the problems of effective distribution system of the organization.




                    Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.         Page 6 of 14
7. Methodology of the Study
There are two methods of data collection:

       A. Primary data collection
       B. Secondary data collection

The primary data, which we are collected are used to afresh and for the first time and thus
happen to be original in character. Primary data can collect through: (a) observation method, (b)
interview method, (c) questionnaire method, (d) schedule method and (e) other methods such as
distributor audits, consumer panels, mechanical device (telephone, e-mail, fax etc), projective
techniques, depth interview, content analysis etc. The secondary data refers which have already
been collected by someone and which have already been passed through the statistical process. I
use both methods of data collection to prepare this report.

In primary data collection I use questionnaire and interview method. I collect the secondary data
from the website of Abdul Monem ltd.

After collecting the data I analyze and interpret those and make the findings. Then I conclude
my report.


8. Limitation of the Study:
There are some obstacles when I prepared this report. These are given as follows:

They do not provide sufficient information for some confidentiality of their company policy.

        Lack of proper knowledge about such types of large organization.

        Lack of sufficient secondary data.

        Lack of computer facilities.

   Despite all of these problems, I try my level best to make the report documentary and
realistic.

9. Abdul Monem Ltd. at a Glance
More than three and half a decades ago, we dreamt of a business venture that would have a
distinct appeal to the society for its unique qualities and eventually would become a role model
for the other business enterprises. This simple but extraordinary quality is “Be true to the
society”. Abdul Monem Limited focusing to this philosophy grew over the years by providing
the best services and highest quality products. Actually, this key philosophy has remarked Abdul
Monem Limited as the most trusted and one of the leading Companies in the Country.

Started as a Construction Contractor in 1956 and later diversified to food sector Abdul Monem
Limited proudly represents brands like Coca-Cola, Igloo, AmoMilk and Danone that are the
milestones to our quest to provide the best and quality products to our thousands consumers.


                   Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 7 of 14
The Company is manufacturing and marketing Igloo ice cream, country’s leading ice cream
brand. Igloo is the pioneer ice cream brand in Bangladesh and started its operation in 1964 in
Chittagong.

Later, with the expansion of market a new factory was established in Shampur Industrial Area,
in Dhaka to cater the market demand. Presently, Abdul Monem Limited used the state of the art-
straight-line technology for manufacturing the ice cream. Actually, Abdul Monem Limited is the
first in the South East Asia to introduce this technology. The facility is producing nearly 20,000
Liters of ice cream each day that is distributed through out the country

Facilities & Logistics of Igloo Ice Cream- At a Glance

    Factory Location:                  Dhaka
    Line:                              7 (Seven)
    Packages:                          Stick, Premium, Cup, Cone, Family Pack, Cake Ice
                                       Cream, Assorted.
    Machine Supplier:                  Mark - Italy
                                       Tetra Pak (Hoyer), Denmark
                                       Sabore, Denmark
                                       Haas, Austria
    Machine Models:                    Freemark 1100, Italy
                                       FM 3000, FM 6000, Italy
                                       SL 600, Denmark
    Cone Baking:                       Hass, Austria
    Chocolate Making:                  Macentyre, UK
    Coverage:                          Nationwide
    Operational Center:                6 Nos.
    Total Market Vehicles:             20 nos.
    Distribution Channel:              Direct/through appointed distributors
    Outlet Service:                    7,000
    Injected deep freezers:            1,800
    Ice Cream trolley:                 95 Nos.
    Warehouse No:                      6 Nos
    Warehouse:                         Store Capacity
    Factory:                           100,000 Liter
                                       Dhaka: 42,000 Liter
                                       Chittagong: 10,000 Liter
                                       Comilla: 5,000 Liter
                                       Khulna: 5,000 Liter.
                                       Rajshahi: 5,000 Liter




                    Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 8 of 14
10. Marketing Strategy of Igloo Ice Cream

10.1 Product Policy
A product is anything that maximizes utility of the consumers. With respect to product, policy
consist of following features of a product: (i) Product variety (ii) Quality (iii) Design (iv) Brand
name (v) Packaging (vi) Sizes (vii) Warranties, and (viii) Return

Product Mix:
A product mix or product assortment is the set of all products and items that a particular seller
offers to buyers. Igloo Ice Cream has a product mix of: Stick, Premium, Cup, Cone, Family
Pack, Cake Ice Cream and Assorted with a large variety of flavor of each item.

Product Line Length and Product Mix Width:
A company’s product mix is described as having a certain width, length, depth and consistency.
The product mix width refers to how many different product lines company carries. Igloo Ice
Cream has a product mix width of seven lines. Product mix width and product line length are
shown in the following table.

                                                               Product Mix Width
                          Stick          Premium              Cup      Cone      Family                     Cake Ice         Assorted
                                                                                  Pack                       Cream
                         Chocobar,       Sandwich,         Vanilla,           Cornelli         Vanilla,     Ripple,          Party time
                        Mini Choc,        Clown,            Mango,            Classic,       Strawberry,    Vinnetta            box
                        Sweet heart,       Ego,           Pista Kulfi,                          Mango
 Product Line Length




                       Shell & Core,       Mega,            Single           Cornelli         fresh, diet
                           Kulfi          Macho,           Sundae,           Premium            vanilla,
                                                          Snow Ball,                            ripple,
                                                            Mango                             chocolate
                                                            Magic                               cheers,
                                                                                               caramel
                                                                                                combo,
                                                                                              pistachio,
                                                                                                mango
                                                                                               melody,
                                                                                             strawberry
                                                                                               sparkle,
                                                                                              with ½, 1,
                                                                                               2, 5 liter
                                                                                              container
Total                       05                05                07               02               10           02               01
Product Line Strategy:
Each product line is usually management by a different manager. Product line managers need to
know the sales and profits for each item in their line in order to determine which item to build,
maintain, harvest or divest. They also need to understand each product’s market profile. It is
necessary for a product line manager to know the percentage of total sales and profits
contributed by each item in the line.

Quality Maintenance, Control & Innovation:
Abdul Monem Limited delivers its commitment for quality for each product by maintaining total
quality management. All the raw and packing materials are procured from the best European
sources. Stricktest Quality Control is done at every aspect of the manufacturing process from

                                  Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.     Page 9 of 14
procurement of material, mixing, material flow, ice cream making, packaging, storing (at main
warehouse), distributing and market shelving by the Quality Control Department.


10.2 Pricing Policy
Pricing policy is the course of action or guiding philosophy that helps a business firm make
pricing decisions smoothly and perfectly. It guides the company to achieve its goals set by the
firm. It is an important element of the entire marketing strategies of a firm. A firm can easily
manipulate the demand in the target market by handling its price carefully.

Pricing Objectives:
The objectives of pricing policy must be consistent with the company overall mission and
purpose. The clearer a firm’s objectives, the easier it is to set price. A company can pursue any
of six major objectives through its pricing: survival, maximization current profit, maximum
current revenue, maximum sales growth, maximum market skimming, and product quality
leadership. Igloo Ice Cream pursues two objectives – maximum current revenue and product
quality leadership through its pricing.

   (i)       Maximum Current Revenue: It estimates the demand and costs associated with
             alternative prices, and chooses the price that produces maximum current revenue,
             cash flow, and rate of return on investment. Igloo Ice Cream sets prices that can
             generate maximum current revenue for the company which is clearly observable
             from its turnover tk 80 crores in 2007. Their targeted turnover in 2008 is tk 100
             crores.
   (ii)      Product Quality Leadership: Every mixture is randomly tested during the
             production process. Butterfat and solid levels are tested. The bacteria levels are
             measured. Each mixture is also taste-tested. Igloo Ice Cream also carefully monitors
             the ingredients that they purchase from outside suppliers.

Pricing Method:
There are a number of price-setting approaches: markup pricing, target-return pricing, buyer
based pricing, going rate pricing, and sealed base pricing. Of these pricing approaches Igloo Ice
Cream adopts markup pricing method for its products as a innovator of ice cream industries in
Bangladesh. In markup pricing, the company bases its prices largely on their production cost.
Adopting markup pricing, Igloo Ice Cream has gained turnover of tk 80 crores in 2007 and also
expect it will be tk 100 crores in 2008.

Price Setter:
In Igloo Ice Cream, the Managing Director sets price. He watches the prices of production cost
and sets prices having discussion with the production managers. The other parties who may
exert influence on price including sales and marketing manager and accountants are all directly
connected with the Managing Director.


10.3 Distribution Policy:
The distribution network is stretched all over the Country with long fleet of refrigerated van.
Firstly, the ice cream are stored at the central warehouse of the factory, from there the ice
creams are distributed through the haulage vehicle to the following operational center

          Dhaka :        Covering the Dhaka and adjacent sub-base markets.
                     Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 10 of 14
       Chittagong :     Covers the South & South West part.
       Comilla :        Covers the Western part of the country.
       Khulna :         South and South East part of the country.
       Rajshahi :       Northern part of the country.

Stricktest cold chain maintenance during the distribution and selling of ice creams. The retail
shops are provided with the Deep Freezes to ensure proper storing of the products.

Trolley Operation
Igloo also operating through the Trolleys for extended reach to its consumers. The Trolleys are
operated to schools, alleys, streets, parks etc. and play a rhythmic music to attract the
consumers. The Trolleys are very colorful with Igloo umbrella and the Trolley puller wares
specific uniforms. Igloo is the first in introducing and operating these Trolleys in Bangladesh for
any FMCG. Igloo is operating ninety-five (95) Trolleys.


10.4 Promotional Policy
Promotion mix is composed of four tools of communication: advertising, personal selling, sales
promotion, public relation, and direct online marketing. But Igloo Ice Cream not utilizes all the
tools to promote products. Till the time of writing this paper, Igloo Ice Cream not involved in
any kind of direct online marketing. It follows advertising, personal selling, and sales promotion.
Expenditures incurred on promotional activities are reported in the following table:

        Year                  Amount spent on                    Amount spent on              Amount spent on
                                adverting                        personal selling             sales promotion
        2007                     80 lacks                            20 lacks                     10 lacks

Advertising:
Igloo Ice Cream spends the biggest portion of its total promotion budget for advertising. Though
this is the innovator and leader of ice industries, the firm can easily realize that the firm could
successfully anticipate the effectiveness of advertising and thereby spent tk 80 lacks in 2007.
Igloo Ice Cream gives its first preference to Television. Besides TV advertising, it uses
newspaper, magazine and billboards too.

Personal Selling:
Sales people maintain a good relationship with the dealers, distributors and wholesaler. Igloo Ice
Cream has 70 sales people, who are engaged in and responsible for distributing the goods among
the dealers, distributor, and wholesalers. Sales people collect the data on demand for the
products throughout Bangladesh on which forecasted demand is derived. Igloo Ice Cream gives
its second preference to personal selling. Each sales representative is assigned in an exclusive
territory to represent the company’s full line products. As only one sales person works in one
territory, he bears the credit or blame for area sales to the extent that personal selling effort
makes a difference. In 2007, about tk 20 lacks spent on personal selling.

Sales Promotion:
Sales promotion is another essential ingredient in marketing campaign. Advertisement offers a
reason to buy, whereas sales promotion offers an incentive to buy. Sales promotion includes
tools for consumer promotion, trade promotion, and business and sales force promotion. Igloo
Ice Cream expenses a total of tk 10 lacks per year as a sales promotion.


                    Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 11 of 14
Public Relation:

   (i)     Contribution to national calamity: AML has always expanded its hands in facing
           the national calamity. When ever the nation faced any natural disaster, flood or any
           other calamity AML got itself involved in the relief activity. AML has distributed
           Relief among the flood affected people in the year 1988, 1998, 2001 and 2007. This
           year AML has distributed the relief to cover the most affected people. Moreover 52
           Lach liters drinking water was distributed among the affected people this year. These
           were highly appreciated by different media.

   (ii)    Disaster removal activities: AML was never far away from participation in national
           emergency as it has participated in rescue operation in the Army Salvage Operation
           in the Building collapse of Spectra Garments. All recovery equipments were
           provided by Abdul Monem Ltd. in 2005.

   (iii)   Corporate social responsibilities: AML was never far away from people. Through
           out its journey it has engaged itself in many activities that helped people. As a part of
           these activities AML has opened a new wing named Abdul Monem Foundation at
           Brahman Baria which is working closely with the people to remove poverty, develop
           infrastructure, capacity building, increase the level of education and ensure food for
           the poor people. School, College and Madrasha are successfully running under this
           Foundation where the students get free study. One orphanage is also running under
           the banner of AM Foundation where about 3000 orphans are being taken care of.


12. Finding of the Report
One of the best-known Abdul Monem Ltd. businesses is Igloo Ice Cream. Dealerships have
demonstrated the success and feasibility of selling Igloo Ice Cream. The potential success for
selling Igloo Ice Cream is attributed to the following:

   1. Compared to other food service products, Igloo Ice Cream will be a relatively simple
      business to operate.
   2. Igloo Ice Cream is similar to a Italian flavor, but because it is softer and tastier, it is
      preferred over people.
   3. Igloo ice cream is a product that has yielded a considerable profit tk 80 crore.
   4. Igloo ice cream is an ideal product for the health-conscious consumer.




13. Conclusion
The marketing commitment of Igloo is based on the relationship with its consumer by not only
manufacturing the quality product but also delivering the product by maintaining the same
quality. To satisfy the customer Igloo is launching regularly new ice creams and introducing
new flavors. And this commitment has positioned Igloo as the market leading brand by gaining
the consumers trust as


                   Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 12 of 14
                                        “THE GREAT TASTE”


12. Reference

  i.     Cotler Philip, “Principles of Marketing”, 10th Edition, Mc-Graw Hill.
  ii.    www.amlbd.com
  iii.   www.answers.com




                 Marketing Strategy of Igloo Ice Cream: A case study of Abdul Monem Ltd.   Page 13 of 14

				
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