Report On Marketing Plans of Igloo: Submitted by
Report On Marketing Plans of Igloo: Submitted by
Report On Marketing Plans of Igloo: Submitted by
Submitted by
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The recent trend towards maintaining a solid platform by adding novelty imposes a
challenge for majority ice cream companies in particular those, which are trying to
conform their services to international standards in an erratic business environment.
Igloo, believes in ensuring long-term existence by being profitable, successful and
sustainable. They, very keenly take on customers advice, try and amend as well as add
new dimension to their business in order to ensure survival in this highly competitive
industry. This strategy has enabled them to successfully withstand the challenge to remain
competitive with the leading edge technologies as well as products and maintain a
remarkable market share of 63%. In comparison its major competitor Polar occupies a
24% share of the market followed by Savoy with a 10%, Kwality 2% and others 1% of
the market share. Hence, from here conclusion can be drawn that Igloo commits in
providing value added products, demonstrating the businesss commitment to use
resources optimally. The figure below supports the following analysis
Igloo offers the widest choice of ice cream to its discerning consumers, more than any
other competitors in the market. Igloo is offering a total of fifty items, including normal
premium to and novelty cup stick to family pack items. Igloo has more flavors than
anyone else in the industry and is continuously launching new and innovative delicacies.
From the above diagram it can be illustrated that among the numerous varieties that Igloo
produces they have their distinctive contribution towards the total sales. Starting with
Choc-bar, which contributes 29% of the total sales mainly, comprises of chocobar and
mini choc. Both are vanilla flavored and chocolate coated and gives consumers an
energetic sensation as they indulge themselves into it. Then, steering our analysis towards
Macho, which has a contribution of 5%, has flavorings of vanilla and strawberry ripple
accompanied by hazelnut coating and added crispy flakes to accentuate its taste further.
Once, customer dips into it they simply say Exquisite. As we turn toward Cornelli, it
comprises of two item Cornelli 2-in-1 and Cornelli Classic. The first one gives a dual
taste of vanilla and strawberry while the later has an exquisite taste of vanilla with
chocolate nuts sprinkled on top. From the analysis it can be seen that they have a joint
contribution of 5% of total sales. Not to forget the widely acclaimed Mega which is
vanilla flavored with white chocolate coating and simply energizes the consumers with its
taste and occupying a share of 8%. Also there is the pure vanilla cup that gives consumers
an impulsive feeling and holds a share of 14%. Last but not the least is the newly
introduced Kulfi which has its popularity especially among the young mass comprises of
a share of 4%. The rest 35% consists of other varied delicacies that Igloo has so far
launched in its product line.
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Part-2
COMPANY PROFILE
Corporate Head Quarters
Year of Establishment
: 1956
Business Line
Group Turnover
BCG MATRIX
Boston Consulting Group (BCG) matrix is a framework for highlighting and analyzing
product development policy and associated cash flows implications in a firm. The BCG
approach is based on the philosophy that a product s market growth rate and its relative
market share are important considerations in determining its marketing strategies.
The marketing strategies of Abdul Monem Ltd is based on the BCG matrix which
includes an integration of the firms products into a single overall matrix and an
evaluation to determine appropriate strategies for all the different SBUs of the company
itself and the overall portfolio strategies. Abdul Monem identifies the BCG matrix as a
powerful tool
To analyze the current situation of the company which is based on the present and
projected market growth rate and proposed market share growth.
To determine and classify each product expected future cash contributions and future
cash requirements.
To examine the competitive position of a product or a product line and the opportunities
for improving products contribution to profitability
In figure below, which is based on work by the Boston Consulting Group, consist of four
quadrants in the grid, which represents distinct categories of SBUs or major products of
AML. The categories differ with respect not only to market growth share and industry
growth rate but also on cash generation and needs for appropriate strategies.
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COMPANY BACKGROUND
Abdul Monem Limited (AML) first emerged as a building and construction house in
1956. Since their inception the company invested heavily in equipment, machinery,
technology and in staffing with qualified technical personnel and associates, to deliver the
highest quality work and has successfully completed many construction projects of
different agencies, including projects financed by the World Bank, International
Development Agency (IDA) and Asian Development Bank (ADB). AML quests for the
service excellence derived from quality work and timely completion of projects. To
accomplish this, the unit is heavily equipped with the worlds best equipment for civil
works and its major suppliers are: Caterpillar, Komatsu, John Deer, Ingersol, Furukawa,
Vibro, Kawasaki, Bedford, Nissan, and others.
Started as a Construction Contractor and later diversified to the food sector, AML proudly
represents brands like Coco-Cola, Igloo, AmoMilk and Danone that are the milestones to
their quest to provide the best quality products to thousands of consumers.
AML is the authorized bottler for Coco-Cola, Fanta and Sprite. AML started its bottling
operation by acquiring the plant of the K. Rahman and Company in 1982. In 1987 the
company made an aggressive move to expand the market by establishing a new bottling
plant at 450 bottles per minute (BPM) capacity at Comilla. In 1997 the company
established another bottling plant in Chittagong.
In 1996, AML Trading and Distribution unit was formed to promote the trading
distribution business with other countries. The unit commenced its operation by
marketing Danone Biscuits and Evian Natural Water of Danone International Brands.
In 1997, the milk unit introduced Ghee at the market naming Igloo Ghee. The product
immediately gained consumers acceptance and popularity, as it is prepared from the
fresh milk without using any preservatives or additives.
In June 1998 the company added Ballantyne Butter from Australia and Igloo Juice of
Lemonade and Mango flavor in its line of products.
In 1999, the company entered a packaging contract with the Ballantyne Foods Pvt.
Limited of Australia for marketing Igloo Butter.
In 1990 the company was awarded the Presidents Turtle Award by the president of The
Coco-Cola Company in recognition of its contribution to positioning the brand. Because
of its remarkable track record, the Company has recently been awarded the total
Operation and Maintenance work of the Jamuna Multi Purpose Bridge for 5 years.
Today, in the constantly growing and ever changing world of trade and technology, Abdul
Monem Limited has a new challenge, the challenge to remain competitive with the
leading edge technologies as well as products and services.
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THE PRODUCT
The world market for ice cream has been catering to the varied taste of consumers. Hence
Igloo has maintained a strong position in the market of the Bangladeshi customers. This
is partly because nowadays ice cream has become very popular and an integral part of the
culture.
Igloo, one of the prime products of Abdul Monem Limited, is the countrys most
preferred ice cream. It is the pioneer ice cream brand in Bangladesh, having started its
operation in 1964 in Chittagong.
Later, with the expansion of the market, a new state-of-the art factory, with the most
modern equipment, was established in Shampur Industrial area, in Dhaka, to cater to the
market demand. Presently AML uses straight-line technology for manufacturing premium
ice cream. Actually, the company is the first in South East Asia to introduce this
technology. The facility is producing nearly 20,000 liters of ice cream each day that is
distributed throughout the country.
AML- ice cream is committed to maintaining the highest quality standard, through its
continuous R&D activities. The major ingredients, raw materials and the packing
materials are procured from the best European sources. Strict quality control is done at
every stage of the manufacturing process, from procurement of material, mixing, material
flow, ice cream making, packaging, storing (at main warehouse), distributing and market
shelving by the Quality Control Department.
Igloo is the pioneer in providing ice cream with fresh taste and modern packaging. At
present Igloos long product line comprises of fifty items. It has captured the minds of
consumers in the local market and is considered to be the market leader in the ice cream
industry. Amid intense competition in the ice cream industry, Igloo holds a major share of
the market by differentiating its products in terms of price, taste, flavor and quality.
MISSION
Mission is the organizations reason for existence. The mission describes the
organizations shared values, beliefs and reason for being. Igloo without playing an
exception, being committed to achieving the highest quality products and positioning
itself as the market leading brand by gaining the consumers trust aligns effectively to its
guided mission that echoes THE WORLD OF GREAT TASTE. This includes a
dedication to review the existing operations, the evaluations and the creation of the new
products by not only manufacturing the highest quality products but also delivering the
product by maintaining this high quality. To satisfy the ever-changing needs of the
customers, Igloo is launching regularly new ice creams and introducing new flavors.
Thus in a few words it can be said Igloo is based on the relationship with its customer.
VISION
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The message from the managing director of Abdul Monem Limited propagates as:
I dreamt of a business venture that would have distinct appeal to society for its unique
qualities and eventually will become a role model for other business enterprises. This
simple but extraordinary quality is Be True To Society. Igloo as being one of the most
prospective SBUs of Abdul Monem Limited is guided by this similar vision. As a result
this key philosophy has earmarked Igloo as the most trusted and one of the leading
companies in the country.
In the figure below is the organogram of Igloo, where the task of each individual is
denoted and the line of authority and the degree of responsibility.
Managing
Director
General
Manager
Marketing
Department
Factory
Production
Deputy General
Manager
Marketing
Department
Manager
National Sales
Manager
Regional
Manager
Sales
Officers
Sales
Representatives
Brand
Manager
Sales
Officers
Functional
Manager
Brand
Officer
Quality
Control
Inflow
Supervis
or
Facility
Agencies
Technical
Departm
ent
Research and
Developm
ent
ORGANOGRAM OF IGLOO
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OBJECTIVES
1. To give an insight to the ice cream industry, the company and the product line.
2. To analysis the marketing strategies for Igloo and assess its target consumers and
competitors.
3. To provide an introduction of the strategic aspects of marketing with particular
reference to the analysis of marketing mix.
4. To analyze the techniques of segmentation, targeting and positioning of products.
5. To make an assessment of the interaction between Igloo and its immediate
environment and analyze the impact of various trends upon its survival and longterm success.
6. To analyze the distribution channels and the role of intermediaries in the
distribution network.
7. To develop an appreciation of the need to evolve a promotional mix appropriate to
the product.
8. To explain and analyze the role of Marketing Research.
9. To conduct an investigation of the wide range of strategies pursued by Igloo with
a view to achieving its objectives.
10. To have a clear analysis of the various growth strategies for the market
opportunity identification.
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Part-3
LIMITATION
For doing this research, we have faced some constraints or limitations which are
following:
1. Due to rainy weather our schedule was delayed.
2. Initially we have to spend few times for conducting the key persons whom we
have required for our assignment purposes.
3. Some other factors such as technical difficulty in lab, load shedding etc were
acted as an obstacle for making our research report.
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Part-4
GENERAL ENVIRONMENT
Demographic Forces
TASK ENVIRONMENT
Customers
Economic
Suppliers
Forces
Technological
Distributors
Forces
Global Forces
Sociocultural
Forces
Competitors
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Suppliers of Igloo provides for items ranging simple nuts coatings, and other basic raw
materials to high tech ice cream processing machines. Almost all ingredients are supplied
by foreign suppliers. The main ingredients such as milk powder, nuts, chocolates, sticks,
tetra packs, various essences and flavors are imported from Australia, New Zealand, UAE
and Dubai. Machines are imported from Denmark, Italy and Switzerland. An important
note on suppliers is made here by the Igloos Marketing Manager. According to him, local
suppliers are far less reliable than foreign suppliers both in terms of quality of goods and
the kind of services they provide. Foreign suppliers are more reliable, professional and
devoted to commitments. Such is its faith on foreign suppliers that Igloo imports all items
though it is time consuming and there are costly import related formalities.
DISTRIBUTORS:
DISTRIBUTION MISSION:
Reaching our target consumers in the most efficient and effective way by becoming
benchmark supplier in the ice cream industry, within strategic channels in every market
place where we do business.
The main function of the distribution unit of Igloo is to create a sequence of effective
network so that an important strategic edge over competing channels are created and
ensure a continuous flow of its products to the ultimate consumers target market. The
activation of the distribution channels proceeds from their factory at Shampur in Dhaka
and ends at the retail outlets stretched all over the country with a long fleet of refrigerated
vans.
After production, ice cream products are stored at the central warehouse of the factory at
a temperature between 30 0 degree to -350 centigrade where it is stored in a Store
Keeping Unit (SKU) and from there they are distributed through three effective
distribution systems Direct Distribution System (DDS), Redistribution System (RDS)
or Super Distribution System (SDS).
Direct Distribution System uses Freezer On Wheeler (FOW) to distribute the products to
the different operational centers. FOW consists of large refrigerated vans with
temperature under 200 centigrade and strict regularity is maintained to ensure proper
temperature levels so as not to cause any deterioration in the quality of ice cream. DDS
is applicable mainly for city areas, and roads where one can easily access the retail shops
by means of FOW. The DDS network is spread over six regions of the country. In Dhaka,
Gulshan, Banani, Dhanmondi, Uttara, Baily Road, Mirpur Road, and some areas of
Mohammadpur falls under the DDS network. In these areas FOW supplies the retailers
with the required lot. Each retail shop has their own Dealer Record Cards (DRC)
through which they are graded as A plus, B plus, C plus retailers and through which they
assess whether to provide cash discounts, volume incentives scheme or some other means
of discounts. Moreover, Igloo provides retail shops with attractive deep freezers
containing logo of different ice cream so as to ensure proper storage and display of the
products. Chittagong covers south and southwest parts of the country and due to its
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status as nationals business capital, Igloo puts high emphasis in distributing its products
to some of the retail outlets through DDS. In Rajshahi, Barishal, Khulna, Comilla,
Chittagong, Igloo uses the DDS system only just to take its products to the different depot
of the regions where Igloo has their warehouse. Every sales officers of the warehouse
covers a number of areas, distribute the goods themselves to the distributors. Distributors
are given a 5% commission as sales incentives to take the goods to the shop on behalf of
Igloo.
Igloo also operates through the trolleys popularly known as tun tuni vans, which uses
RDS for extending its reach to consumers at the furthest points. The trolleys are operated
near schools, alleys, parks etc. and play rhythmic music to attract the consumers. These
are very colorfully decorated with Igloo umbrella and the pullers wear specific uniforms.
Igloo is the first to introduce and operate these trolleys in Bangladesh for any Fast
Moving Consumer Goods (FMCG). Igloo has ninety- five trolleys. Moreover trolleys are
used for places where FOW is unable to operate. Within Dhaka, Igloo provides RDS
facilities in Old Town, Zikatola, Badda, Nakhalpara, Khilgaon, and some areas of
Mohammadpur and Uttara. In Old Town they have nine RDS points. RDS is also used in
Khulna, Rajshahi and in some other areas where DDS cannot enter.
In Sylhet, a self-created concept known as Super Distribution System (SDS) is put into
practice. In this system, the super distributor holds the title of the product and is given the
sole responsibility of selling only Igloos products. Super distributors are given a 7%
commission and they distribute products to retailer and wholesalers on their own accord.
DDS
RDS
DDS
DHAKA
RAJSHAHI
HIKHULNA
DDS
KHULNA
RDS
CHITTAGONG
FACTORY
DDS
RAJSHAHI
RDS
RDS
BARISHAL
COMILLA
SYLHET
RAJSHAHI
HIKHULNA
DD
S
SDS
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DD
S
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CUSTOMERS:
DD
RD
S
Being the major source of survival and profit, customers form the most important
component for an organization like Igloo. Igloo considers customers as being their lifeblood of survival and is taking the maximum innovative efforts that can be utilized for
utmost customers satisfaction. Customers here can be segmented to family, kids,
teenagers of high end, mid end and low end of the market. Changes in the number and
type of customers results in a dimension of opportunities and threats. Igloo operating in
such ever-changing world of tastes and preference pays heed to customers choices and
their attitudes. They, very keenly take on customers advice, try and amend as well as add
new dimension to their business in order to ensure survival in this highly competitive
industry.
COMPETITORS:
One of the most important forces that always keep an organization on guard is its
competitors. Competitors are organizations that produce similar goods. In the context of
Igloo, Polar, Kwality, Savoy, Milk Vita and others can be held as competitors. In terms of
their parlors Moven-pick, Baskin Robbins, and Club Geleto are their competitors. But
surprisingly, the marketing management of Igloo views these local brands as mere
participants in the same industry rather than as competitors
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and others. These innovate machines are able to produce ice creams at a faster rate while
not undergoing any sacrifice in the level of quality, and thus their warehouse has
capacities in thousand liters.
SOCIOCULTURAL:
The socio cultural environment is made of institutions and other forces that affect social
values, perceptions, preferences and behavior. In the context of a predominantly Muslim
country like Bangladesh, Igloo has customized its services according to the country's
culture. While the producing ice cream, Igloo puts strong emphasis in seeing that no
haram ingredients are used.
DEMOGRAPHIC:
The demographic forces are of interest to marketing managers because it involves people
and people make up the markets. Demography shows the populations inclinations
towards certain social structure and the increase or decrease in certain age groups .For
Igloo demographic factors are of advantage if it shows an increase in the number children
and teenage population (the most lucrative segment for the ice cream industry).
POLITICAL AND LEGAL:
The formation, maintenance and survival of any organization is dependent on the stability
of a countrys political and legal system. A comprehensive analysis of the political and
legal factors by Igloo helps in ensuring stability in terms of its operations. The legal
consideration lies in the awareness of various laws regarding import of raw materials and
the like.
GLOBAL: Established thirty nine years ago as the pioneer ice cream brand
in Bangladesh, Igloo has firmly incorporated its credibility and is far ahead of its other
counterparts in terms of creating values and availability of a wide range of exclusive
items and flavors. In terms of globalization, Igloo has already gone for international
expansion with its focus mainly concentrating now in Calcutta and North Eastern states
of India. However, Calcutta now being the prime target has fifteen branded companies
namely Walt, The Big Ones, and Metro Dairy and so on which Igloo now considers as its
prime global competitors. It is therefore trying to create a solid base in the international
arena through brand loyalty, acquiring huge finance and making its business and its
resources parallel and adaptable to survive in ardently competitive international market.
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Part-5
MARKET SEGMENTATION
Igloo has designed various marketing mixes according to the different products needs and
preferences with regard to the consumer market and has clustered people with similar
needs into selected segments namely domestic and international.
Demographic Segmentation
From the viewpoint of an ice cream manufacturing company, demographic segmentation
holds importance in terms of its close relation to customer product needs and purchasing
behavior and the ready measurability of variables such as consumers age and life cycle
and their income.
TARGET MARKETING
The kind of market Igloo operates in is characterized by the volatility of its general
environment, the dynamism of its competitors and most of all the varying and the
inconsistency of needs and buying preferences of the consumers market, which are
important consideration guiding their day to day operations. Keeping this in mind, Igloo
has developed sound marketing programs, which starts with identifying the differences
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that exists within a market, deciding which segments will be selected and developing
specific marketing mixes so as to influence intended customers, and overall perception of
the brand, Igloo.
Age:
This is the most important component of demographic segmentation. Over the years, ice
creams were considered to as being more of a recreational product, but standing on this
new century, the effect of globalization has placed ice cream as more of a regularity in
our lives. Igloo has divided its markets in segments according to different age groups
such as kids, teenagers, and the family range. Different ages of people are influenced by
different flavors of ice cream, different presentations of packaging and different product
attributes. Kids incline more towards ice creams, which contains animated and colorful
packaging, taste of sweet strawberry, fresh mango, pure vanilla, ripples, hazzle nut
coating and crispy flakes. Teenagers prefer low calorie ice cream, more daring and wider
range of tastes. Families are influenced more by ice creams that fulfill the general appeal
and taste of all the members of the family.
Income:
Income is the key determinant of consumers buying behavior. It is the most popular
demographic variable for market segmentation. For a larger part of the population to buy
the product, it is very important to segment the market in different income groups. This is
given utmost importance in Bangladesh where there is wide variation in the average
levels of income. Igloo has divided the market into three income groups low-income
group, mid-income group and high-income groups.
MARKET TARGETING
After market segmentation, Igloo goes for designing, implementing and maintaining
marketing mixes intended to meet the needs of the target groups, resulting in mutually
satisfying exchanges.
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panda (which resembles a panda), cups such as strawberry, vanilla, and mango. For kids
at the low end of the market, delicacies offered are lolly with orange and lemon flavors
and snow ball (which after eating can be used as a ball for playing). Igloo has
wonderfully attractive, colorful and animated packaging and ice creams that take the
form of Disney characters for the kids of all income groups. For the integrated and the
lucrative segment called family, ice cream includes containers- coffee, ripple, tutti fruiti
and others, which mainly targets high-income earners. For families at the mid end of the
market, Igloo offers 1 and 2 liters plain box ice creams. Sticks products such as Mega
(Premium Product), Macho, Shell & Core, Cornelli Cones and ripple cakes- vanilla,
chocolate and ripple, Shahi Kulfi vanilla with nuts are all for mid and high end of the
market. For high end of the market, Igloo provides consumers with parlors where they are
thirty-five different flavors from which hundred different sundaes can be made.
UNDIFFERENTIATED:
An undifferentiated target strategy approaches the segment as one big market with no
individual segments and thus requires a single marketing mix. Chocobar and the newly
introduced Kulfi are the prime examples related to successful targeting of the mass
market. Chocobar priced at TK 12/-, mini chocobar priced at TK 10/- and Kulfi priced at
TK 5/- with sober colored packages enables Igloo to go for mass marketing.
MARKET POSITIONING
Positioning refers to developing a specific marketing mix to influence potential
customers overall perception of a brand, product line or organization. The marketing
manager of Igloo assumes a realistic view of how customers think about their offerings in
the market. At the same time, the manger also knows how he wants target customers to
think about its marketing mix. According to him positioning issues are especially
important when competitors in a market appear to be very similar, with the ice cream
industry being a prime example. Igloo follows several positioning strategies.
Products Attributes
Macho Exquisite
Chocobar Energetic
Shell & Core Metange
Lolly Eager
Clown Animating
Mega Energetic
Coffee Refreshing
Ripple Praiseworthy
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Pralin Puissance
Cornelli Dual
Usage Occasion:
Usually consumers perceive ice cream as an integral part of summer. Igloo aims at
positioning ice creams to as being a winter item along with its regular summer item
image. Igloo is trying to position its ice cream as a item for all seasons in other parts of
the country like that is perceived in Dhaka, through different promotional activities.
Against a competitor: Several of Igloo products such as Kulfi, Chocobar, Cups and box
are positioned against similar products of other competitors such as Kwality, Polar and
Savoy.
Product
Place
Price
Promotion
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In the above diagram the customer is shown surrounded by the four Ps. An important
point to note is the customer should be the target of all marketing efforts but it is not the
part of the marketing mix. Hence, Igloo follows this concept and places its customers in
the center. The customer C stands for some specific customers the target market of
Igloo.
Therefore, Igloo creatively blends and develops the best mix for its target market. In
other words, each decision works well with all the others to make a logical whole and
now we will turn our synopsis to each of the components.
PRODUCT :
For Igloo the Product decisions revolve around developing the right product for the target
market and this includes not only the physical unit but also warranty, brand name,
company image, value and many other factors. Apart from maintaining a superior quality
through its imported ingredients and bringing regular production consultants from India,
Pakistan, Denmark and Holland, the units separate R&D department regularly analyzes
new products through its market research to answer questions as:
At what price consumers would like to buy the product.
1. Flavors and essence to be used.
2. Consumers feedback.
3. Analyze other markets.
Igloos Product line includes distinctive ingredients, as some are vanilla flavor with
chocolate hazelnut or milk coating, some may have crispy flakes, others include Pista nut.
On the other hand, to provide a taste of refreshment there are flavors including coffee,
strawberry, mango, with almonds and ripples. Each of these delicacies has positioned
itself as a unique brand in consumers mind. As a result reckoning any of its names
immediately strikes the consumer with its idiosyncratic savor, which he identifies through
words as- Superb, Cloying, Mouth-watering, Refreshing, Exquisite, Energetic, Puissance,
Animating!!! These eclectic tastes have been able to exceed consumers expectations
resulting to delightful consumers and thus to the creation of a powerful company image.
PRICE:
Price is what the buyer wants to give up obtaining the product. It is often the flexible of
the four marketing mix elements the quickest element to change. Igloo in setting its
price considers the kind of competition in the target market as well as the cost of the
whole marketing mix. It has developed a wide range of prices for its various segments.
This includes a range starting from TK 5/- to TK 25/- for cups and sticks, TK 45/- to TK
200/- for family pack items as depicted in the table below. Need to say Igloos parlor,
which extensively caters to the taste of the upper income consumers, has a price range of
TK 75/- to TK 500/-.
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PRICE
12/15/17/17/25/10/10/5/6/10
12/8/10/8/125/140/-, 200/45/-, 80/-, 150/150/150/150/100/150/100/-
PLACE:
Place is concerned with all the decisions involved in getting the right product to the target
market. A product isnt much good to a customer if it isnt available when and where its
wanted. Hence, through implementing a channel of distribution, Igloo makes it product
available to the final consumers.
The distribution network is stretched all over the country with a long fleet of refrigerated
vans. Firstly, the ice cream products are stored at the central warehouse of the factory,
and from there they are distributed through the haulage vehicle to the following
operational centers.
Dhaka
:
Covering the Dhaka and adjacent sub-base markets.
Chittagong
Comilla
Khulna
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Rajshahi
Apart from that Igloo also operates through ninety-five trolleys for extending its reach to
various consumers at different locations as schools, alleys, streets, parks e.t.c. Also
shopping malls as One Stop Mall in Rapa plaza, Agora in Rifles Square, Stop and Shop
as well as departmental stores as Yusuf, Needs, Almas contains Igloos freezers. Its
network also covers lanes and by lanes through appointing local distributors and
dedicated sales teams to accompany their freezers.
PROMOTION:
Promotion is concerned with telling the target market about the product that has been
designed for them through a proper channel, which includes personal selling, advertising,
sales promotion and public relations.
Igloo basically follows three different promotional activities and their explanations are
given below:
Trade partners and retailers Bulk purchases are rewarded through volume incentive
scheme such as cash discounts or a few liters of free purchase.
Consumers Availability of scratch cards through purchase of certain flavored ice creams
enables consumers to obtain different types of gifts such as CD player, radio, television
e.t.c. Also last year (2001) every purchase of Macho had a Kit Kat free.
Social Occasions Even specific promotions are developed for Eid, Christmas,
Friendship, Valentine and other occasions. For example this year the parlor had a package
for 14th February which included a couple buying TK 200/- worth of ice creams would
get a free cassette of love songs. Also during the Eid time the prices of most of the ice
creams are reduced to a certain level in the retail outlets.
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Part-6
MARKETING STRATEGIES
A well-organized, precise and appropriate plan is sometimes very successful in
transforming a business into a very established and profitable one.
Planning is very crucial for an organization as it gives them direction of where they are
headed for. It reduces uncertainty by forcing marketers to look ahead, by anticipating
changes and by considering the impact of change and by developing appropriate
responses. Furthermore, planning minimizes wastage, and can set standards in
controlling.
Igloo is managed by developing three levels of plans the short-term, medium-term, and
long-term plans.
LONG-TERM PLANS:
1. To become one of the market leaders in the ice-cream industry.
2. To gain goodwill.
3. To expand its business domestically and internationally.
4. To ensure long-term existence by being profitable, successful and sustainable.
5. To make a worthwhile contribution to progress of the nation.
6. To increase the number of Igloo parlor in targeted prospective areas.
MEDIUM-TERM PLANS
1. To provide the best services and highest quality products.
2. To respond effectively to the market demand.
3. To survive in the market by increasing profitability and growth.
4. To gain competitive advantage and to increase market share.
Moreover for ensuring the fulfillment of the overall company strategy, it focuses on a
wide range of facilities in order to motivate employees, distributors and retailers to
increase their performance.
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MARKETING RESEARCH
Marketing research is a systematic inquiry into the happenings of the market place, just
as astronomy is a systematic investigation of the stars and planets. Both use step-by-step
approaches to gaining knowledge. For Igloo, the marketing research is conducted by a
research company named OMR MARG Quest Ltd and according to the information
obtained this company uses various research methods for each of the targeted segments.
The research method mainly tries to finds answers to questions:
1. What actually instigate the consumers to buy these ice creams?
2. How do the consumers perceive each of the branded products?
3. What new Flavors can be introduced?
4. What are the prospective segments and the appropriate prices to be charged for
each of them?
After sorting these questions the company undertakes the final task, of which research
methods to be used which for them comprises of both the primary and secondary
research. Through extensive survey research the company analyzed that Igloo could
introduce a low priced item to gain a mass appeal. That is where inception of kulfi
occurred starting from school children to even the older generations, this item has won
their hearts both in terms of its low price but also a superior quality and taste.
The company has also noticed that none of the other ice cream companies in the industry
had an item that supplemented to the taste of each family members at a time that is when
they introduced the item Family Pack, which includes a combination of Mega, Clown,
Cornelli Classic, Cornelli 2-in-1, Eskimo, Shahi Kulfi, Choc bar, Shell & Core, Cola
Rola, Lemon loly, Orange loly and Snowball. This pack can be used for various occasions
as childrens party and family get together.
Through means of the research it was first identified that Igloo was only providing ice
creams through its retail outlets and hence maintain a reasonable price. It is at this time
that the idea of opening a parlor came into mind and the project was then undertaken. In
choosing the location the research company considered various factors such as the
number of universities and offices prevailing in the prospective location, the number of
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shopping complexes as well as the income of the people in that area. Finally measuring
the accessibility of the place the parlor is now situated in Kamal Attaturk road, Mirpur,
etc. which caters to students, office goers, family with its superior quality and congenial
environment. The research company has also formulated questionnaires to execute a
consumer survey in finding out the prospects of increasing the number of parlors in
future. This questionnaire is also designed to find out whether the consumers are satisfied
with the current quality of the items, quality of the service, their tastes as well as what
new items and flavors they prefer in future.
By means of house-to-house sampling assisted by this company, it has enabled Igloo to
have more flavors than anyone else in the industry and still continuously launching new
and innovative delicacies.
Needless to say marketing research has been an effective tool for Igloo in defining its
problems and identifying what information is required to solve the problems, designing
the method for collecting information, managing and implementing the collection of data,
and analyzing the results and communicating the findings and their implications.
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Packaging, the newly added element of the marketing mix is important to both sellers and
customers. Good packaging makes products easier to identify and promotes the brand at
the point of purchase and even in use. Igloo tries to create an effective packaging system
through importing all its packaging materials from Dubai. Constant research is conducted
in developing new packages and consultants from various countries as India and Pakistan
contributes toward the package design. Hence, from here it can be concluded that Igloo
believes that good packaging can make the important difference in a marketing strategy
by meeting consumers needs better.
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Part-7
In Igloo, the organizational structure is given a lot of weight. Igloo has developed an
effective structure that facilitates their accomplishment. Igloo follows a functional
structure, which is composed of all the departments required by Igloo from production to
the distribution of its products to the final consumers.
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In Igloo, Mr. Abdul Monem is the founder of the Company and empowered CEO of the
Group. Under him is the General Manager who is responsible for all the different
functional departments of the company. The General Manager is in charge of all the
functional departments - Marketing and Production Factory. These departments work
separately but report to the general manager, who sees that all departments are achieving
their goals and are also fulfilling the entire goals of Igloo. Under him are the Marketing
and the Production Factory Departments.
The Marketing Manager, who reports to the General Manager, is in charge of all the
different marketing activities of Igloo. Under him are the National Sales Manager (who is
in charge of the taking the products from the warehouses to the different retail outlets),
the Brand Manager (who is responsible for designing the packaging and directing the
entire marketing program for a given products or group of products) and the Functional
Manager who is responsible for the other department such as Accounting and Finance.
There are seven Regional Managers under national Sales Manager who are in charge of
the different regions those being Dhaka, Chittagong, Barishal, Khulna, Rajshahi, Comilla,
and Sylhet, The different sales officers and sales epresentatives are under the different
regional managers. Under the Brand Manager is the Brand Officer who helps the brand
manager in designing products and packaging.
Another department is the factory production, which is primarily responsible for the
production of the products. The Deputy General Manager works under him and sees that
all the different sub departments are in line with other departments and help them if any
problems arise. Under him, are the Production Manager, the Quality Control Department,
the Inflow Supervisor, the Technical Department and the Research and Development.
SWOT ANALYSIS
SWOT is the planning exercise used by Igloo, which provides a framework for
identifying internal strengths and weakness and the external opportunities and threats it
faces.
STRENGTHS:
Igloos strengths are its ability to develop specifiable and empirically applicable
corporate, business and functional level strategies and adapting effective measures, which
enables them to secure a strong brand reputation accompanied by a strong product line of
fifty items and a broad market coverage of 63%. These measures include:
Human Resource Competencies: Igloo has an extremely qualified executive
body with most of its managers holding foreign business degrees including Mr. A S M
Mainuddin Monem who is a Harvard Graduate. Apart from that it possess a highly
dedicated workforce, which enables the business to maintain operational excellence.
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Warehouse No
6 Nos.
Warehouse
Store Capacity
Factory
100,000 liters
Dhaka
42,000 liters
Chittagong
10,000 liters
Comilla
5,000 liters
Khulna
5,000 liters
Rajshahi
5,000 liters
Warehousing Capacity:
creams.
Modern Equipment:
Machine Supplier
: Mark Italy
Tetra pack(Hoyal), Denmark
Sabore , Denmark
Hass, Austria
Machine Models
Cone Baking
: Hass, Austria
Chocolate Making
: Macentyre, UK.
WEAKNESS:
The major weaknesses of Igloo comprises of Incurrence of high-level expenses in the
Research and Development(R&D) sector. High operating and maintenance expenses
resulting from the large size of the business. Excessive reliance on foreign suppliers.
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OPPORTUNITIES:
Igloo classifies its opportunities to their attractiveness and success probability. Mere
competence doesnt constitute a competitive advantage. The best performing company
will be the one that can generate the greatest customer value and sustain it overtime and
Igloo is a blind follower of such an ideology. Hence, identifying its opportunities can be
one of the key success requirements for operating in the target market but also exceed
those of its competitors. These opportunities include:
Expanding into foreign markets - To a certain extent Igloo is taking advantage of this
opportunity by having been recently started its exports, which currently involves Calcutta
and the North Eastern States of India.
Entering new related businesses This is also visible through its items as Amo milk,
Igloo Ghee and Igloo Butter.
1. Widening the product range.
2. Seeking faster market growth.
3. Exploiting new market segments.
THREATS:
Igloo classifies its threats according to their seriousness and probability of occurrence.
Hence, threats can be viewed as challenges posed by unfavorable trends or developments
that would lead, in the absence of defensive marketing action, to deterioration in sales or
profits. The major threats for Igloo signify:
Increase in domestic competition Threats can come in the form of competitors, but
according to Igloo, they do not view other ice cream companies as their competitors but
as mere counterparts.
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Part-8
Recommendations
In spite of Igloos remarkable success certain loopholes in the marketing aspects has been
detected. After our research we came up with some possible steps and solutions that we
would like to state below.
Competitors are an important component of the task environment. Igloo should pay heed
to its potential competitors rather than treating them as mere counterparts.
Igloo should involve in backward vertical integration to lower the costs of value creation
and lessen its reliance on foreign suppliers. For instance, incidence such as 11 th
September may hinder the flow of supplies in the production process when there is
excessive dependence on foreign inputs.
Igloo till now has been able to sustain its position as a market leader even though it has
reached its maturity stage. However, with the growing demand for Polar, Savoy, Kwality
and other ice cream companies, Igloo should undertake extensive advertising through
increased media coverage in the television.
To enhance the maturity level, Igloo should undertake the task of sponsoring more social
events such as concerts, cricket, football and other such tournaments to retain its
popularity in the younger market segments.
Emphasize should be given on TV commercials, to capture a greater share of the market.
A proper customer help line should be developed to mitigate the further needs of the
customer.
For a consumer-oriented company like Igloo, whose main operations rallies around the
domestic market, a lions share of its resources is devoted towards serving the domestic
consumer segments where segments are identified on basis of age and income. For most
of its products Igloo uses differentiated marketing, developing different marketing mix
for varied groups of consumers while for few products like Kulfi and chocbar are aimed
for its entire buyers.
Problems were faced during the interview, as the managers were reluctant to disclose
some of the confidential aspects of the organization.
All the data obtained were not always reliable and hence subject to error. Due to the time
constraints we could not complete a comprehensive investigation and there were some
areas that were left unexplored. In many occasions managers were hesitant to cooperate
in providing honest answers.
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Conclusions
From an extensive marketing analysis of the ideas and marketing concepts at work in the
operation of Igloo, it is possible to obtain an insight to the essential marketing practices
adopted by the company. Adherence to proper marketing strategies in terms of company
objectives, paying heed to target consumers and potential and existing competitors, close
relationship and liaison with distributors and suppliers ensure substantial market
capitalization as indicated by Igloos market share of 63% in the ice cream industry.
Evidently by virtue of its unique product attributes, high quality, exquisite and mouthwatering varieties of ice creams, attractive and distinct packaging, Igloo has been able to
ensure marketing excellence and enhance its competitiveness.
Todays fiercely competitive environment compels Igloo to pursue the right set of pricing
strategies, policies for effective segmentation and targeting, market oriented structures of
distribution and retailing, which lies at the heart of the companies success. Moreover,
with a view to achieving wide distribution network, it operates a system of RDS, DDS,
SDS, maintains depots and warehouses to achieve a relentless effort to maintain its sales
and distribution flow enables the company to achieve its desired goals.
In its quest to create satisfying customer relationship and optimizing the performance of
the entire system, Igloo has resorted to a system of timely distribution. With the
combination of effective promotional campaign and advertisement in various media, it is
able to retain valuable customers and inform them about multiple brands they are offering
at present. They had long experience in accomplishing this in the past and they are sure
that they will be able to meet the challenge in the future too.
This report basically focuses on the marketing aspects of Igloo and tries to give an
analysis of Igloo in terms of the industry, the market and the marketing mix of the
products itself. The report gives an overall view of Igloo ice cream and focuses in details
on the different varieties catering to the distinctive taste buds of the respective
consumers. Moreover, since Igloos coverage comprises of the entire country, the report
will mainly concentrate on Dhaka city as the area of study.
We will also explore critically its immediate environment, the various segmentations and
the marketing strategies involved in positioning itself as the pioneer in the ice cream
industry. This will also enable us to monitor the performance and come out with relevant
and feasible suggestions for the effective operations of the company.
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