Marketing Igloo & Milk Vita

View with images and charts A Report Ice Cream Industries in Bangladesh: Igloo, Polar and Milk Vita 1.1 Overview of the company: Igloo Abdul Monem Limited is manufacturing and marketing Igloo ice cream, country’s leading ice cream brand. Igloo is the pioneer ice cream brand in Bangladesh, having 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.

2.1 SWOT Analysis A Company’s Strengths, Weaknesses, Opportunities and Threats can be determined by SWOT analysis. SWOT analysis of Igloo is discussed below: 2.2.1 Strengths The strengths of Igloo are:         

Igloo is the market leader.

Goodwill of the company and brand image.

Strong distribution network as its product is available in every district and Upozilla of Bangladesh.

Igloo is the only ISO 9001:2000 & HACCP certified ice cream Company in Bangladesh.

Varieties of products.

Continuously launching new and innovative delicacies.

Committed to maintain the highest quality standard, through its continuous R&D activities and Quality Control Department.

Competitive pricing.

Good packaging.

2.2.2 Weaknesses The weaknesses are:  Decentralized management system.  Only managing director can take every decision.  Make delay for taking decision.

2.2.3

Opportunities

The opportunities are:

 

Demand of ice cream is very high and it is growing.

Market is increasing 15% per annum.

2.2.4 Threats The threats are: 

 

Major ingredients, raw materials and packing materials of Igloo ice cream are procured from Australia, New Zealand, and Denmark. Because of money devaluation Igloo has to pay more for importing and thus the product cost increases. But with this high cost of production company can not always increase the retail price.

Because of the poor power supply of the country storing the production in fridge is hampering.

Some illegal companies are duplicating Igloos’ packaging.

2.3 Igloo Ice Cream Company- An overview from marketing perspective 2.3.1 Mission Like any other business firm Igloo Ice Cream Company also specified their mission in following manner “A world of Great Taste”, which has a direct relation with their activity.

2.3.2 Goal of Igloo Ice Cream Company Igloo is committed to provide good relationship with its consumer by not only manufacturing the highest quality product but also delivering the product by maintaining this high quality.

To satisfy the ever changing needs of 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- A World of Great Taste.

2.3.3 Overall Marketing Strategy of Igloo Ice Cream The marketing strategy of Igloo ice cream is based on the effective market segmentation and determination of target market. Basing on this the organization sets its product, price, placement and promotion strategy, which ultimately enable the company to achieve its goals.

2.3.3.1 Market Segmentation and Target Market Igloo Ice Cream Company does the market segmentation; targeting and positioning to decide which customers it will serve and how. By market segmentation it can increase its sales and profit. In this section, Igloo Ice Cream Company’s strategies of segmenting and targeting the market by identifying the customers’ needs, designing and positioning of the product to fulfill the needs are discussed.

2.3.3.1.1 Market Segmentation Igloo ice cream designs and produces their Ice Cream basing on the Customers income, age, status and taste. Considering the income of consumer Igloo Ice Cream has divided its market into two segments.

1. Upper class, and

2. Middle class.

1. Upper class: For the upper class people, who have higher income, Igloo has delicious Double Sundae with different types of flavors. Igloo also has exclusive ice cream cake, Igloo Vinnetta for the upper class people.

2. Middle class: For middle class, Igloo has lots of products like Liter box of five flavors, Lolly, Kulfi, Cup ice cream, Ripple cake, etc.

Considering the age and taste Igloo has divided the market in the following groups.

1. Kids: For kids Igloo have some ice creams with fancy packaging like Snow Ball, Mango Magic. Igloo also produce cartoon shaped ice cream, named Clown and very good looking Juicy with two flavors for the kids.

2. Young Generation: For the young people Igloo produce Macho, Mega, Single Sundae, etc. Igloo has introduced a heart shaped ice cream Sweet Heart and it is a very sweet present for some ones’ love.

3. Diabetic patient: Only Igloo has the offer of Diabetic Vanilla, Ice cream for diabetic patient.

4. Chocolate lovers: For the chocolate lovers Igloo has the offer of Ego, Igloo Sandwitch, Igloo Nuggets, etc.

2.3.3.1.2 Target Market The target market is the grouping of customers to whom the seller specifically aims its marketing efforts. The careful selection and identification of target market is essential for the market expansion and customers satisfaction. Generally Igloo ice cream sells its product to higher income and middle income people.

2.3.3.2 Marketing Mix The Marketing mix for the existing marketing system can be illustrate in terms of 4Ps of marketing i.e., (1) Product (2) Price (3) placement or distribution Channel and (4) Promotion.

The marketing mix of Igloo Ice cream is discussed below: 2.3.3.2.1 Product Igloo offers the widest choice of ice cream to its discerning consumers, more than any other competitor in the market. Igloo is offering more than fifty items, including normal premium and novelty cup, stick and family pack items. Igloo has more flavors than anyone else in the industry and is continuously launching new and innovative delicacies.

The brand name, the package, the labeling all go into build up the personality of its product.

Igloo aims to make its products to fulfill the demand of its target markets. Company tries to position its products differently from other competitor. Every year Igloo launches at least two new products to satisfy ever changing needs of the customer. Igloo is predicting a large variety of Ice creams.

2.3.3.2.2 Price

Pricing objective: Pricing objective of Igloo is to survive in the market and get maximum profit.

Pricing method:  Comparing with other companies for the same kind of products it keeps the price same.  For the unique product of the company it tries to get higher profit 2.3.3.2.3 Place(Distribution Channel)  The distribution network is stretched all over the country with a long fleet refrigerated vans.  Firstly, the ice cream products are stored at the central warehouse of the factory, and from there products are distributed to every district and upazilla.  Strictest cold chain maintenance during the distribution and selling of ice creams is ensured.  Retail shops are provided with attractive deep freezers to ensure proper storage and display of products.  Igloo also operates through trolleys for extending its reach to consumers at the furthest points. The trolleys are operated near schools, alleys, streets, Parks etc.

2.3.3.2.4 Promotion  Igloo ice cream’s main promotional strategy is to keep close to customer’s eyes.  Igloo has more than hundred trolleys in the country and these are very colorfully decorated with Igloo umbrella and the puller wears specific uniforms. Trolleys play rhythmic music, which attracts the people to buy it.  Igloo does the advertisements in led displays of the city’s centre points, TV channels.

They have many billboards in different areas and road side signboards.  Igloo also arranges events in theme parks, schools.  Company gives some promotional offer with its products once in a year to the consumer and two times in a year to the retailer.

POLAR 3.1 Overview of the company Dhaka ice cream industries Ltd. introduced the first hygienically packed ice cream in Bangladesh in 1987. The brand name “Polar” was thus born.

In the early days, the company started the ice cream business with a wide range of products and a variety of flavors in Dhaka city. In 1988, the company started its distribution in the city of Chittagong, then Bogra, and then covered city after city. Presently, Polar ice cream is available throughout Bangladesh. The company today is one of the leading producers and distributors of ice cream in the country.

3.2 SWOT Analysis SWOT analysis of Polar Ice Cream Company: 3.2.1 Strengths

     

Use Danish equipment and technology.

Production activities and quality control measures are supervised and managed by Danish expert.

Raw materials are imported from Europe.

Steady growth of the organization.

Competitive pricing.

Product quality.

3.2.2 Weaknesses      

Narrow distribution channels.

Few promotional activities.

Sales decrease in winter and rainy season.

Can not provide fridge to all retail shop.

Insufficient electricity supply.

Centralized management system.

3.2.3 Opportunities        3.2.4      

As Bangladesh is a tropical country so the demand of ice cream is very high and it is growing.

Cheap labor cost.

National income has been increased.

Market is developing day by day.

New market can be explored outside of the Dhaka City.

Less number of competitors.

Diversification opportunities exist.

Threats Increased price of raw materials.

Highly competitive market.

Uncontrollable situations like bad weather, irregular power supply, political violence, flood etc.

High cost involvement for automatic plant and for providing freeze to the retailer.

Consumers change their taste and flavor rapidly.

Easy entry in the market for any supplier.

3.3 Polar Ice Cream - An overview from marketing perspective 3.3.1 Mission Polar Ice Cream Company specified their mission in following manner “Maintain the best quality and supply as required by the consumer”.

3.3.2 Objective The goal of Polar Ice Cream Company is: 

Good services to customers.

 

Increase return on investment through more selling by quality products.

To become the market leader.

3.4 Overall Marketing Strategy of Polar Ice Cream Factory Basing on point of differentiation, effective market segmentation and determination of target market the organization sets its product, price, placement and promotion strategy, which ultimately enable the organization to achieve its goals.

3.4.1 Point of Differentiation At present Polar Ice Cream Factory markets different types of Ice Cream. To support the market expansion and customers’ satisfaction, it gives importance to some major aspects. And the company always tried to be differentiated from others in all those places and those are shown in figure.

DISTRIBUTION CHANNEL QUALITY OF

AFFORDABLE

PRODUCT

PRICE

BRAND LOGO

RESPONSE FOR

VARIETY IN PRODUCT

CONSUMERS DEMAND

INTIMACY WITH CONSUMERS

Figure 3.1: Point of Difference – Polar Ice Cream Company’s Marketing Efforts.

3.4.2 Market Segmentation and Target Market In this section, Polar Ice Cream Factory’s strategies of segmenting and targeting the market by identifying the customer’s needs, designing and positioning of the product to fulfill the needs are discussed: 3.4.2.1

Market Segmentation

The factors, which have been considered for segmenting, are (1) Age and Income (2) Children & Female.

Considering the end-users and sales agents/retailers needs in mind, Polar Ice Cream has divided its market into segments as shown in Table.

Types of Products 1 liter Family Pack, Cone, Crunchy, Vanilla Strawberry Choco bar, Vanilla Toffee, Crunchy, cone, cup

Considered Variables Age, Income Children & Female

Table 3.1 : Polar Ice Cream Company's Segmentation Pattern 3.4.2.2 Target Market  Upper middle class  Middle class  Lower middle class 3.4.3 Marketing Mix The Marketing mix for the existing marketing system can be illustrated in terms of 4Ps of marketing.

3.4.3.1 Product Polar Ice Cream Factory aims to make its products to fulfill the requirement of their target markets. They try to position their products differently from other competitor. Polar is predicting a large variety of Ice creams. The width of the product mix is very narrow.

Chocobar Chocobar is one of the largest selling products in Ice Cream industry. Vanilla with chocolate coating stick.

Cone The Ice cream paste is filled in a Cone shaped biscuit. The product is available in Vanilla and Mango flavor.

Chewy The Ice Cream paste is filled in a 150 milliliters of cone shaped plastic cup. This is available in vanilla and strawberry flavor.

1 Liter Family Pack

The Ice Cream paste is filled in a 1 liter plastic container. The product is mainly designed to be used by a small or a large family. This is available in Vanilla, Mango and Strawberry flavor.

Crunchy Polar has first introduced this ice cream Vanilla with crispy coating.

Vanilla Toffee This ice cream’s out look followed the Logo of Polar ice cream with vanilla and strawberry flavor.

Vanilla Strawberry This ice cream has only Vanilla and Toffee flavor.

3.4.3.2 Price The main objectives of pricing are: • To survive in the market.

• To gain maximum profit.

• To maximize revenue.

Pricing Method: First, it determines all the cost associated with the products and then adds up a standard markup, which is normally 25% to 30% of the cost.

3.4.3.3 Placement (Distribution Channel) Distribution channels play a vital role in successful marking of most of the products, especially consumer products. Dhaka Ice cream (Polar) at present has four cold stores in Dhaka, Chittagong, Bogra, and Jessore, in Bangladesh.

In Dhaka city, it distributes its ice creams directly to retail stores in freezer vans. Besides that, it has several distributors at different points of the city. Distributors cover their individual areas where polar is not able to supply directly in its freezer vans.

For storing and selling ice creams in retail stores, company arranges a deep freezer with the Polar logo and canopy light box (upon request from the store owner.)

In addition to this distribution, Polar also undertake home delivery of ice creams for special occasions.

3.4.3.4 Promotion Promotional Activities: o Yearly Children Competition Program o Offering scratch cards to the consumers for discounts and gifts. o On-line offerings:

    

Polar Fan club Fun & games Cool contest Ecards Ice creams recipes

Promotional Tools The essential tools for promotion of Polar Ice Cream are advertising, personal selling, sales promotion and direct selling. These tools are mentioned below: • • • • •

Advertisement Billboards Personal Selling Poster Publicity

Savoy 4.1 Overview of the company Savoy Ice Cream is an enterprise of Sena Kalyan Sangstha (SKS). SKS is a welfare trust created by the Government for Ex-Armed Forces and their dependents. SKS owns various industrials and other business units. Savoy Ice Cream has started commercial operation since March 1995. For production of Savoy Ice Cream, Italian Technology is followed. The main plant machinery had been imported from Italy. Different types of ice Creams are produced and it’s about 1600 liter per day. But the project is too small comparing with the competitors in terms of production capacity, variety, distribution facilities, storage capacity, investment etc.

4.2 SWOT Analysis A Company’s Strengths, Weaknesses, Opportunities and Threats can be determined by SWOT analysis. SWOT analysis of Savoy Ice Cream Company is discussed below: 4.2.1 Strengths The strengths of Savoy Ice Cream Company are:      

Strong administrative backup by SKS. Goodwill of SKS. Steady growth of the organization.

Competitive pricing.

Product quality.

Sound management.

4.2.2 Weaknesses The weaknesses are:

     

Centralized management system.

Weak distribution channels.

Narrow product line.

Poor packaging.

Low brand image.

Poor promotional strategy.

Opportunities The opportunities are:      

Total amount requirement of ice cream is very high and it is growing.

Market is increasing 10% per annum.

New market can be explored outside of the Dhaka City.

Less number of competitors.

Financial support exists from SKS. Diversification opportunities exist.

4.2.4 Threats The threats are:      

Small project of SKS. Highly competitive market.

Uncontrollable situations like bad weather, political violence, flood etc.

High cost involvement for automatic plant.

Rapid change of customer choice.

Easy entry in the market for any supplier.

4.3 Savoy Ice Cream Company- An overview from marketing perspective 4.3.1 Mission Like any other business firm Savoy Ice Cream Company also specified their mission in following manner “To ensure the best quality and taste”, which has a direct relation with their activity.

4.3.2 Objective The goal of Savoy Ice Cream Company is: • • •

To satisfy the customer needs.

To earn maximum profit through more selling by quality products.

To develop the company’s existing facilities.

4.4 Overall Marketing Strategy of Savoy Ice Cream Point of differentiation, Effective market segmentation and determination of prudent target market is a prerequisite to the success of any business organization. Basing on this the

organization sets its product, price, placement and promotion strategy, which ultimately enable the organization to achieve its goals.

4.4.1 Point of Differentiation At present Savoy Ice Cream markets different types of Ice Cream. To support the market expansion and customers’ satisfaction company gives importance to some major aspects. And the company always tried to be differentiated from others in some places and those are shown in the figure 4.1.

DISTRIBUTION DISTRIBUTION CHANNEL CHANNEL QUALITY OF QUALITY OF PRODUCT PRODUCT

AFFORDABLE AFFORDABLE PRICE PRICE COMPETE ON VALUE

RESPECT FOR RESPECT FOR

VARIETY IN VARIETY IN PRODUCT PRODUCT

CUSTOMER CUSTOMER

LESS PROMOTION LESS PROMOTION

Figure 4.1: Point of Difference – Savoy Ice Cream Company’s Marketing Efforts.

The core of all those activities is to compete on value and this is the crux of Savoy Ice Cream Comany’s marketing strategy as well as market expansion and customers’ satisfaction. Other major supporting elements are:      

Respect for Customers.

Quality Product.

Variety of Product.

Affordable Price.

Less Promotional Activity.

Less distribution Channel.

4.4.2 Market Segmentation and Target Market

Savoy Ice Cream Company segments its markets so that it can respond more effectively to the wants and needs of prospective customers and thus increase its sales and profit.

In this section, Savoy Ice Cream Company’s strategies of segmenting and targeting the market by identifying the customers’ needs, designing and positioning of the product to fulfill the needs are discussed.

4.4.2.1 Market Segmentation Savoy Ice Cream sells their Ice Cream basing on the Customers income, age and status.

Considering the end-users and sales agents/retailers needs in mind, Savoy Ice Cream has divided its market into two segments as shown in Table.

Types of Products

Considered Variables

Chocobar, Lolly, Cone, Cup, Liter Box

Age

Special liter, Cake, Parlour Ice Cream

Age, Income

Table 4.1: Savoy Ice Cream Company's Segmentation Pattern 4.4.2.2 Target Market The target market is the grouping of customers to whom the seller specifically aims its marketing efforts. The careful selection and identification of target market is essential for the market expansion and customers satisfaction. Savoy Ice Cream Company identifies and profiles distinct groups of buyers who might prefer varying products. It identifies wants and needs of customers and the ability of buyers as a basis of target market.

Savoy sells its product to:  Upper class  Middle class, and  Upper middle class.

4.4.3 Marketing Mix The Marketing mix for the existing marketing system can be illustrate in terms of 4P;s of marketing i.e., (1) Product (2) Price (3) placement or distribution Channel and (4) Promotion.

The marketing mix of Savoy Ice cream factory is discussed bellow: 4.4.3.1 Product

Savoy Ice Cream aims to make its products to fulfill the requirement of its target markets. It tries to position its products differently from other competitor. The Savoy Ice Cream is predicting a large variety of Ice creams. The width of the product mix is very narrow and consists of only two-product lines, namely Ice cream and chocolate/flavored milk. The products of each product line are discussed below.

Chocobar Chocobar is one of the largest selling products. Savoy is producing only one category of Chocobar. Total quantity of each Chocobar is 100 milliliters.

Cone The Ice cream paste is filled in a Cone shaped biscuit. The product is available in two different flavors i.e. Vanilla and Mango flavor. Quantity of each Cone Ice Cream is 100 milliliters.

Cup The Ice Cream paste is filled in 100 milliliters of plastic Cup along with a wooden spoon.

This is easy to handle and is highly used by different aged customer groups. This is also available in vanilla, Strawberry and Mango flavor and with (Ripple) 100 milliliters Cup. Liter Box (Normal, Ripple and Special).

The Ice Cream paste is filled in a 1,2 and ½ liter plastic container. This is another largest selling product. The product is mainly designed to be used by a small or a large family. This is available in three different categories, i.e. normal (with Vanilla, Strawberry, Mango and Chocolate flavor) Special and in a Ripple pack.

Lolly This product is designed to meet the demand of the lower income customer groups. It is available in Lemon and Orange flavor.

One liter (Ripple) Ice Cream Cake The product is very rich in quality. Different seasonal fruits are used to make it more delicious. This product is mainly designed for the high-income customer group.

Parlour Ice cream.

This product is very high quality of Ripple/Special Ice Cream in some very rich flavor such as praline, Pistachio, Coffee, Kulfi, Black Currant, Trite Fruity etc. is served with seasonal Fruits topping. The product is designed for upper middle and high-class people. These are available only in Savoy Ice Cream parlour.

4.4.3.2 Price Pricing objectives of Savoy Ice Cream:  To survive in the market.  To gain maximum profit.  To maximize revenue.

Pricing Method

Pricing method normally means the route taken in fixing the price. Evidently, the pricing method must be appropriate for achieving the desired pricing objectives. In pricing the product, Savoy Ice Cream follows cost-plus method. First, it determines all the cost associated with the products and then adds up a standard markup, which is normally 25% to 30% of the cost.

4.4.3.3 Place(Distribution Channel) The products of the Savoy Ice cream are sold through direct marketing system. Generally, through Institutions and Sales centers it distributes directly to the consumers. This is the zero level channel of Savoy Ice cream. In the direct system, refrigerated van and trolley vans distribute Ice Cream to the shop in different areas of Dhaka City .

Factory

By Refrigerated Van

Distributor/Agent

Retailer

By Refrigerated Van

O

Sals Center

By Trolly Van

Retailer

C

Institution

Retailer

N

S

U

M

E

R

Figure 4.2: Distribution System of Savoy Ice Cream Although, the distribution channel network of Savoy Ice Cream is not much wider, as the refrigerated vans and trolley vans are not sufficient as required to maintain a fair distribution network, now it is developing day by day. There are some distribution outlets operated by Savoy Ice Cream Factory in Dhaka, Chittagong and other cities. The outlets are carefully chosen basing on their performance and goodwill at local markets.

4.4.3.4 Promotion This section deals with the marketing communications mix and expenditure of Savoy Ice Cream in promotion campaign of varieties of Ice Cream. The target audiences of the promotion efforts are the potential buyers of the product.

Communication Objectives.

The target consumers are aware of the quality and taste. Thereby the customers go for comparative evaluation with other quality products. Thereby, the communication objective of the Company is to remind the customer about the quality and its unique features like continuous quality assurance, taste and varieties of products.

Setting the Promotion Budget.

Savoy Ice Cream spending in promotion budget is very less than its sales and profit. It follows almost a flat rate promotion budget each year for the product.

Promotional Tools.

The essential tools for promotion of Savoy Ice Cream are advertising, personal selling, sales promotion and direct selling. These tools are discussed bellow: Advertisement.

Advertisement of the product is one of the major tools for promotion with an objective repeatedly reminding the customers about the product. The message of the advertising is informative highlighting the features as well as customers benefits of the product. The chosen media for these advertisements are TV media, print media like Newspaper and publications, billboards, roadside signboards etc.

Savoy Ice Cream still now has not under go into a satisfactory advertisement program. In financial year 1998-99 a TV add film was produced and shown but very infrequently. Behind this interceptive advertisement program is the rigidity. The main reason behind this effective advertisement program is the rigidity and long-term decision-making procedure by the Centralized Management and limited budget allocation for advertisement.

Billboards There are some billboards are displayed in Dhaka cities like Bus Stand at Mirpur, Jatrabari, Mohakhali and major cities like Chittagong, Khulna etc.

Personal Selling.

Savoy Ice Cream has some salesman in their sales centers. Besides this, it has some trolley van by which salesman sales their products to the customers.

Sales Promotion.

Management of Savoy Ice Cream Factory insists on sales promotional activities but only a few steps have been taken into account due some limitations. As per information sales promotional tools used by the management are Free sample, poster, sticker and Mina Bazar.

Publicity.

Publicity is another major tool in promotion. The management is going to take some necessary steps to increase publicity, because the management believes publicity can be a potent tool of marketing communication for Savoy Ice Cream.

Commission/Discount to Distributor and Retailers Savoy Ice Cream Factory sales their product to retailer and distributor through some established discount basis.

Milk Vita 5.1 Organizational Overview In Bangladesh with other agro-activities most of the farmer families possess cows for draft purposes as well as for producing milk for their own consumption. In the year 1972, soon after the independence, the government of the People’s Republic of Bangladesh initiated a project for the well being of poor milk producing farmers.

The project envisaged the purchase of milk from the individual poor, marginal and landless milk producing farmers under the fold of Primary Milk Producer’s Co-operative Societies with fair price and guaranteed market, transportation of the collected milk to the rural plants for the preliminary processing and further transportation of the milk to the production plants for final processing of market milk and milk products with brand name “MILKVITA”.

5.2

SWOT Analysis

A Company’s Strengths, Weaknesses, Opportunities and Threats can be determined by SWOT analysis. SWOT analysis of Milk Vita is discussed below: 5.2.1 Strengths The strengths of Milk Vita:      

Goodwill of Milk Vita.

Only dairy ice cream of Bangladesh.

Steady growth of the organization.

Low price.

Product quality.

Sound management.

5.2.2 Weaknesses The weaknesses are: 

Centralized management system.



As it is a government organization, ministry can take every decision but the company management can’t take any decision.

Company can not provide refrigerator to the retail shop, where competitors are providing it at free of cost.

Narrow product line.

Poor packaging.

Poor distribution channel.

    5.2.3

Opportunities

The opportunities are:  Demand of ice cream is very high and it is growing.  Market is increasing 10% per annum.

5.2.4 Threats The threats are:  

Highly competitive market.

Uncontrollable situations like bad weather, irregular power supply, political violence, flood etc.

High cost involvement for automatic plant.

Rapid change of customer’s choice.

Easy entry in the market for any supplier.

  

5.3 Milk Vita Ice Cream - An overview from marketing perspective 5.3.1 Mission Like other firm Milk Vita Ice Cream Company does not have any mission statement. But it has a mission of producing quality milk product to meet the consumer’s satisfaction.

5.3.2 Objective • • •

To satisfy the customer needs by utilizing most of the milk produced by country’s milk producing farmers.

To earn maximum profit through more selling by quality products.

To develop the company’s existing facilities.

5.4 Overall Marketing Strategy of Milk Vita Ice Cream Factory Basing on the market segmentation and determination of target market the organization sets its product, price, placement and promotion strategy.

5.4.1 Market Segmentation and Target Market Milk Vita ice Cream Company does the market segmentation and targeting to decide which customers it will serve and how. By market segmentation it can increase its sales and profit.

5.4.1.1 Market Segmentation Milk Vita ice cream designs and produces their Ice Cream basing on the Customers income and area.

Income Products of Milk Vita ice cream are mostly consumed by middle class, whose income level is low.

Area In Dhaka City Milk Vita has market in Mirpur and Mohammadpur area. Out side of Dhaka, specially in the rural areas Milk Vita ice cream has good market.

5.4.1.2 Target Market The target market is the grouping of customers to whom the seller specifically aims its marketing efforts. Generally Milk Vita ice cream sells its product to middle income people.

5.4.2 Marketing Mix The marketing mix of Milk Vita Ice cream : 5.4.2.1 Product Milk Vita Ice Cream aims to make its products to ensure the maximum use of the milk produced by milk producing farmers of the country. The width of the product mix is very narrow. Company does not maintain any research for product variation but it has quality control department. Milk Vita has seven types of ice cream.

5.4.2.2 Price Pricing objectives of Milk Vita Ice Cream:  

To survive in the market.

To gain maximum profit.

5.4.2.3 Place(Distribution Channel)  Advertisement in the billboards in some public places.  Infrequent TV advertisement.

Industry analysis and Conclusion 6.1 Industry analysis It is difficult to determine the exact market share of various brands, as the actual sales turnover or the sales quantity is kept as a business secret by individual Firm. So, determination of market share is on approximate basis. The total market can be divided on

several bases. Mainly the market share of a company is determined (1) Based on Sales Turnover and (2) Based on Annual consumption of the product. This is because pricing of the product by different Company is different. For the financial year 2004-2005 the market share by each company has been shown in the figure.

Igloo 11%

Polar

10%

Savoy 48%

Others

31%

Figure 6.1 : Market share as per annual Consumption 6.2 Conclusion Comparing to the market and other industries, Ice Cream industry is a small issue but a place where there is a scope to exercise marketing policies in a new and innovative manner. There are many Ice Cream Factories in our country. But among them very few are well known.

Igloo, Polar, Savoy and Milk Vita are well known brand of the country. All of these four companies have some strategies for their marketing. Igloo’s marketing strategy is good comparing with others. But Polar, Savoy does not follow all of the strategies for marketing that a good company should follow. Marketing Strategy of Milk Vita ice cream is very poor.

It should improve it marketing strategy for going further.