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ASSIGNMENT ON LAUNCH OF SUBMITTED TO: SUBMITTED BY: Dr.B.B SINGLA Name- Balbir kaur MBA-II(B) Roll no.5446  SCHOOL OF MANAGEMENT STUDIES, PUNJABI UNIVERSITY, PATIALA.

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ASSIGNMENT ON LAUNCH

OF

SUBMITTED TO: SUBMITTED BY:

Dr.B.B SINGLA Name- Balbir kaur 

MBA-II(B)

Roll no.5446

 

SCHOOL OF MANAGEMENT STUDIES,

PUNJABI UNIVERSITY,

PATIALA.

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THE BEGINNING OF THE NEW ERA

India’s contribution to the modern world may not be signed in numbers, but whatever 

contribution made worth wise is absolutely great. One of the contributions in the desert category

“THE KULFI”

Kulfi

Kulfi is a popular South Asian, ice cream made with boiled milk typically from water buffalo. It

comes in many flavors, including  pistachio,  malai, mango, cardamom (elaichi), and saffron 

(kesar). Kulfi differs from western ice cream in that it is richer in taste and creamier in texture.

As well, where western ice creams are whipped with air or overrun, kulfi contains no air; it is

solid dense frozen milk.It is made by boiling milk until it is reduced to half. Then sugar is added

and the mixture is boiled for another ten minutes. Then flavorings, dried fruits, cardamom, etc.

are added. The mixture is then put in moulds and frozen. One can eat kulfi plain as is or it can be

garnished with ground cardamom, saffron, or pistachio nuts. As well, Kulfi is also served with

Falooda vermicelli noodles. But since the kulfi could not become world famous, with the concept

of kulfi, ice-cream was started in 1981 in India. Then onwards it has been one big journey…….

on the road.

 Now, Ice Age – The Healthy Ice Cream Parlor brings to you the new generation of Ice Creams…

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  HISTORY

THE EVOLUTION OF THE ICE CREAM

Ice cream's origins are not known to reach back as far as the second century B.C., although no

specific date of origin nor has inventor been undisputable credited with its discovery. We know

that Alexander the Great enjoyed snow and ice flavored with honey and nectar. Biblical

references also show that King Solomon was fond of iced drinks during harvesting. During the

Roman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners into the mountains

for snow, which was then flavored with fruits and juices. Over a thousand years later, Marco

Polo returned to Italy from the Far East with a recipe that closely resembled what is now called

sherbet. Historians estimate that this recipe evolved into ice cream sometime in the 16th century.

England seems to have discovered ice cream at the same time, or perhaps even earlier than the

Italians. "Cream Ice," as it was called, appeared regularly at the table of Charles I during the 17th

century. France was introduced to similar frozen desserts in 1553 by the Italian Catherine de

Medici when she became the wife of Henry II of France. It wasn't until 1660 that ice cream was

made available to the general public. The Sicilian Procope introduced a recipe blending milk,

cream, butter and eggs at Caf Procope, the first caf in Paris.

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FROM THE COW TO THE CONE

How Ice Cream Is Made

Everybody has a favorite flavor or brand of ice cream, and the debate over whose ice cream is

the best rages on each year. While each manufacturer develops its own special recipes, ice

cream production basics are basically the same everywhere. The most important ice cream

ingredients come from milk. The dairy ingredients are crucial in determining the

characteristics of the final frozen product. Federal regulations state that ice cream must

have at least 10% milk fat, the single most critical ingredient. The use of varying

 percentages of milk fat affects the palatability, smoothness, color, texture and food value of 

the finished product. Gourmet or super premium ice creams contain at least 12% milk fat,

usually more.Ice cream contains nonfat solids (the non-fat,protein part of the milk), whichcontribute nutritional value (protein, calcium, minerals and vitamins). Nonfat dry milk,

skim milk and whole milk are the usual sources of nonfat solids. Thesweeteners used in ice

cream vary from cane or beet sugar to corn sweeteners or honey.Stabilizers, such as plant

derivatives, are commonly used in small amounts to prevent the formation of large ice

crystals and to make a smoother ice cream. Emulsifiers, such as lecithin and mono- and

diglycerides, are also used in small amounts. They provide uniform whipping qualities to

the ice cream during freezing, as well as a smoother and drier body and texture in the

frozen form. These basic ingredients are agitated and blended in a mixing tank. The

mixture is then pumped into a pasteurizer, where it is heated and held at a predetermined

temperature. The hot mixture is then "shot" through a homogenizer, where pressure of 

2,000 to 2,500 pounds per square inch breaks the milk fat down into smaller particles,

allowing the mixture to stay smooth and creamy. The mix is then quick-cooled to about

40°F and frozen via the "continuous freezer" method (the "batch freezer" method) that uses

a steady flow of mix that freezes a set quantity of ice cream one batch at a time. During

freezing, the mix is aerated by dashers,revolving blades in the freezer. The small air cells

that are incorporated by this whipping action prevent ice cream from becoming a solid

mass of frozen ingredients. The amount of aeration is called "overrun," and is limited by

the federal standard that requires the finished product must not weigh less than 4.5 pounds

 per gallon. The next step is the addition of bulky flavorings, such as fruits, nuts and

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chocolate chips. The ingredients are either "dropped" or "shot" into the semi-solid ice

cream after it leaves the freezer. After the flavoring additions are completed, the icecream

can be packaged in a variety of containers, cups or molds.

ICE AGE

The healthy ice cream parlor 

Company profile:

 Name: Ice Age

The Healthy Ice Cream Parlor 

Date of Launch:15 JANUARY 2012

Promoters: Balbir kaur 

Palwinder kaur 

Bharti

karanRamneek kaur 

Product: Sugar free and Fat free healthy Ice Creams. Health conscious desert.

Proposed Flavors: World famous Vanilla and 20 different mouth watering flavors.

Project: Manufacturing and selling of healthy sugar free and fat free Ice Creams. Specially made

for health conscious and sweet tooth people.

Head of department/ management:

Balbir kaur : Finance

Palwinder kaur : Public Relation

Karan brar : Marketing

Ramneek kaur : Product Testing

Bharti baghla : Human Resources

Gursharan singh : Outlet manager 

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Investments:

Total capital investment required:

7 crore

Borrowed capital (loan from SBI bank):

3 crore

Total partners investment:

4 crore

Each partners capital:

70 lakhs

All the six promoters and administrators of Ice Age Ltd... will be equal partners and the

 profits sharing ratio between them will be equal.

Introduction

Founded in Patiala Punjab, Ice Age Ltd.. company is setting up an Ice Cream manufacturing and

selling parlor. It will have great significance in the present day context of increasing weight and

illness among the youth as well as adults due to increasing fat and sugar intake due to increasing

content of sweetener in the Ice Creams and juices. The manufacturing of all types of ice creams

will be done at its production site and then will be transported to its parlors established in the

heart of the city. Ice Age Ltd.. is entering the Indian market with an aim of establishing its brand

as a necessity of the Indian buyers. The company will follow a strategic positioning approach for 

the target market. Ice Age Ltd.. has kept into account the income and behavioral factor of the

Indian buyers while designing the products. It is important for the company to understand the

consumer behaviour before it goes into such a market. The Indian consumer for the first time

will have a premium product which is eco-friendly, healthy and affordable.

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BUSINESS STRATEGY

Our business strategy will include the determination of the most beneficial product market in

term of establishing itself in this new product segment. The most important factor for the success

of Ice Age Ltd. brand is the perception of the consumer and to what extent it can build a positive

image in the consumer’s mind. The intensity of the business environment, the sustainable

competitive advantage of a quality product will give it a strong base to build the market. It is

important for us to adopt a different strategy for the Indian market since it is composed of quality

 buyers as well as those who will buy for their family. Thus, we shall introduce some new

strategies so as to establish our self in the Indian market and develop a strong customer base.

The Model used for preparing the marketing strategy by Ice Age Ltd.. in the Indian

Market

 

Product Range

External Analysis

Competitors Analysis

Internal Analysis

Environment Analysis

Marketing Strategies

Future Plans

Conclusion

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• The first growth vector will involves gaining penetration with the existing product-

market Ice Age Ltd.  will attempt to attract customers from competitors through its

strategic positioning and will establish strong brand equity.

• The second growth vector will involves product expansion while staying in the current

market. Ice Age Ltd.  will then offer a new product. It will be aimed not only for the

existing market but also for the price conscious segment.

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• The third growth vector will apply the same products to the new markets.

• The fourth growth vector will be to diversify into new product markets. We shall

concentrate on the second growth vector and study the strategy with respect to the Ice

Cream market.

INTERNAL ANAYLSIS

According to the recent studies, most of the newly launched product or services fail due to

improper analysis of their internal and external needs. A company should most effectively and

efficiently take care of all the internal matters and needs. Since internal analysis is so use full and

the life cycle as well as pricing is totally depended upon this analysis, Ice Age Ltd.. has taken

 proper and fully effective steps in analyzing all the need and requirements of the company.

During internal analysis the promoter should take care of the following things:

• Raw material requirement

• Power supply

• Labour requirement

• Working force

• Capital

• Working capital

• Internal rules and regulations

• Proper management

• Proper material handling

EXTERNAL ANALYSIS

CUSTOMER ANALYSIS

The Indian market with its vast size and demand base offers great opportunities to marketers.

Two-thirds of countries consumers live in rural areas and almost half of the national income is

generated here. It is only natural that rural markets form an important part of the total market of 

India though the urban market is increasing drastically. Our nation is classified in around 450

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districts, and approximately 630000 villages, which can be sorted in different parameters such as

literacy levels, accessibility, income levels, penetration, distances from nearest towns, etc.

The rural bazaar is booming beyond everyone's expectation. This has been primarily attributed to

a spurt in the purchasing capacity of farmers now enjoying an increasing marketable surplus of 

farm produce. In addition, an estimated induction of Rs 140 billion in the rural sector through the

government's rural development schemes in the Seventh Plan and about Rs 300 billion in the

Eighth Plan is also believed to have significantly contributed to the rapid growth in demand. The

high incomes combined with low cost of living in the villages have meant more money to spend.

And with the market providing those options, trends and tastes are also changing.Thus Ice Age

Ltd.. has decided to enter this market with the basic idea of tapping the upper middle class which

had established itself as a huge tapped market in the perception of a lot of national and

multinational players who were then trying forages into the Indian market.

COMPETITORS ANALYSIS

NEED OF COMPARISION

Consumer Mindset

The consumers always have a different loyalty status for different brands. Sometimes they buy

some brand due to the price or sometimes due to the features. Studying the consumer’s

mindset is of vital importance as perception of individuals at the buying stage of various

 brands is unpredictable and ever changing.

Market Share

The market share of the players in the two wheeler auto market needs to be studied to know

which company is in the booming stage and which company is in its closure stage. Also

the advertisement and promotional share needs to be studied. Thus, market share helps us

know the current market leader and market follower so that our company can develop an

efficient marketing strategy for its product range after analyzing the current market

 player’s position.

SWOT Analysis

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The SWOT Analysis i.e. the Analysis of the Strengths, Weaknesses, Opportunities and Threats

of the company products and its competitors at a glance. It needs to be compared to get an

overall analysis of all the major companies and to know the company having better 

strengths, more opportunities and on the other hand the company having more of 

weaknesses and threats.

0

5

10

15

20

25

30

35

40

45

1st Qtr 

quality walls

baskin and

robbins

mother diary

vadilals

The above diagram represents the sales of the famous Ice Cream parlors in Patilala and their 

sales before Ice Age entered the market

ENVIRONMENTAL ANALYSIS

High initial launch cost

There is a large front-ended investment made in new products including cost of product

development, market research, test marketing and most importantly its launch. To create

awareness and develop franchise for a new brand requires enormous initial expenditure is

required on launch advertisements, free samples and product promotions. Launch costs are as

high as 50-100% of revenue in the first year and these costs progressively reduce as the brand

matures, gains consumer acceptance and turnover rises. For established brands, advertisement

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expenditure varies from 5 - 12% depending on the categories. It is common to give occasional

 push by re-launches, which involves repositioning of brands with sizable marketing support.

 

Market research

Customers purchase decisions are based on perceptions about brands. They also keep on

changing with fashion, income and changes in lifestyle. Unlike industrial products, it is difficult

to differentiate products on technical or functional grounds. With increasing competition,

companies spend enormous sums on product launches. Market research and test marketing

 become inevitable. The business rests on the two aspects that are brand equity and distribution

network.

Marketing driven

In relative terms, marketing function has greater importance in the Ice Cream industry. The

 players have to reach out to mass population and compete with several other brands. The

 perceived differences are greater than the real differences in the product.

Brand equity

Brand equity refers to the intangible asset in the form of brand names. The consumer's loyalty for 

a particular brand is due to the perception that the product has distinctively superior and

consistent quality, satisfies his/ her specific needs and provides better value for money than other 

competing brands. A successful brand generates strong cash flow which enables the owner of the

 brand to reinvest a part of it in the form of aggressive advertisement/ promotion to reinforce the

  perceived superiority of the brand. The worth of a brand is manifested in the consumer's

insistence on a particular brand or willingness to pay a price premium for the preferred brand.

Distribution network 

In this sector, one of the most critical success factors is the ability to build, develop, and maintain

a robust distribution network. Availability near the customer is vital for wider penetration as

most products are high value products. It takes enormous time and effort to build a chain of 

stockiest, retailers; dealers etc and establish their loyalties. There are entry barriers for a new

entrant as a new product is typically slow moving and has lesser consumer demand. Therefore

dealers/ retailers are reluctant to allocate resources and time. Established players use their clout

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to inhibit new entrants. However, when a product offers a strong breakthrough, equity build up

rapidly and so does the distribution network.

The major problems faced while marketing in the local market: -

a. Underdeveloped People and Underdeveloped Markets:

The number of people below poverty line has not decreased in any appreciable manner. Thus

underdeveloped people and consequently underdeveloped market by and large characterize

the Indian markets.

 b. Many Languages and Dialects:

The number of languages and dialects vary widely from state to state, region to region and

 probably from district to district. The messages have to be delivered in the local languages

and dialects. Even though the numbers of recognized languages are only 16, the dialects are

estimated to be around 850.

c. Prevalence of spurious brands and seasonal demand: -

For any branded product there are a multitude of ‘local variants’, which are cheaper, and,

therefore, more desirable to mass.

d. Different way of thinking: -

There is a vast difference in the lifestyles of the people. The kind of choices of brands that an

urban customer enjoys is different from the choices available to the rural customer. The rural

customer usually has 2 or 3 brands to choose from whereas the urban one has multiple

choices. The difference is also in the way of thinking. The rural customer has a fairly simple

thinking as compared to the urban counterpart.

MARKETING STRATEGIES

The Differentiation concept is to make the product different from those of its competitor. When

we look at the local Ice Cream market we see that the leader’s naturals have constantly

maintained its market leadership by constantly differentiating on the basis of new flavors. And

coming up with line extensions with regular frequency. The only alternative for Ice Age Ltd.  to

survive in this industry will be to differentiate itself. This differentiation could be on the basis of 

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the marketing mix. (Product, Price, Promotion, Place) Thus, as per the different factors of 

marketing mix 4 Different strategies are made to market in the developing cities in India.

TARGET MARKET

“Ice Age” – the healthy ice cream parlor offers a wide range of sugar free and fat free ice

creams. The ice creams are specially made keeping in mind all the health conscious people as

well as youth and people who suffer from illness like diabetes. Ice Age is a healthy ice cream

 parlor which targets the higher middle class and rich class of the society.

Due to the variety of flavors and the specialty of being sugar free and fat free makes the Ice Age

Ice Creams more popular among the fitness and health conscious people.Ice Age targets the

market where people are ready to buy healthy junk food due to their taste buds and the fact that

Ice Age Ice Creams are totally fat free and sugar free with the same original taste. Hence Ice Age

Ice Creams targets the market where people from age group 1 year to 80 years can enjoy their 

favorite ice cream keeping in mind health conscious people, diabetic people, young people, etc…

SEGMENTATION

Segmentation variables

Several variables differentiate consumers who prefer different kinds of 

Desserts, such as frequency of consumption, price sensitivity, relative importance of calories vs.

taste, consumption occasion (at home, at work, at a social event, during recreation or at a

restaurant), and desired serving size. The two most important variables are probably price

sensitivity and the taste-calorie tradeoff.

The reason that price sensitivity is especially important is that some consumers will pay high

 prices for a product of high quality. Therefore, one might be able to make large margins selling

to that market. On the other hand, there is a large market that will not buy desserts that are priced

too high; therefore, some of the manufacturers will want to provide value-priced frozen desserts

that may sacrifice quality somewhat. Consumers today tend to be increasingly health conscious,

and many will therefore want to limit the amount of calories in the desserts they consume. On the

other hand, desserts are consumed for pleasure, and other consumers are unwilling to sacrifice

the taste provided by calorie-rich desserts. There are also certain people who have high

metabolisms or engage in strenuous activity, leaving them with less worry about weight gain.

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Frequent or “heavy” users of frozen desserts would a great target, but this group is not readily

identifiable and reachable—these consumers are not likely to have distinct media habits or to

frequent particular stores, for example. Serving size preference is an important issue, but is

addressed already to some extent by price sensitivity.

S W O T ANALYSIS

Strengths:

• Less fixed cost required

• Healthy

•  No side effects

• Less consumption of sugar 

• Less consumption of fats

• Reduces chances of illness like diabetes

• Useful for health conscious people

• Tasty with health

• Variety

• Eco-friendly

Weaknesses:

• Slightly high in price due to use of special products

Opportunities:

• Introduction of new flavors

• Easy in achieving break even point

• Prices can be reduced in short run

Threats:

• Lot of competition from existing Ice Cream parlors offering sugar free ice creams.

MARKETING MIX

Product

Ice Age Ltd… introduces Ice Age Ice Creams – The Healthy Ice Cream Parlor which brings to

you a new generation of ice creams. There are many choices in today’s ice cream case to suit a

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wide variety of consumers taste. There is plenty of information on food labels, but what does it

really mean? Where Ice Age does stands??

Ice cream is a frozen food made from a mixture of dairy products, containing at least 10% milk 

fat. "Reduced fat" ice cream contains at least 25% less total fat than the referenced product

(either an average of leading brands, or the company's own brand.)

"Light" ice cream contains at least 50% less total fat or 33% fewer calories than the referenced

 product (the average of leading regional or national brands.)"Low fat" ice cream contains a

maximum of 3 grams of total fat per serving

"Nonfat" ice cream contains less than 0.5 grams of total fat per serving.

• Introduction of new product in the market

• Completely fat free ice cream

• 98.99% sugar free ice cream

• Eco-friendly

• Healthy

• Zero side effects

• Ice creams for all age groups

• Total health conscious product

• Blend to suite the taste buds with health in mind

• Variety of flavors for the first time in sugar free and fat free concept

• More than 30 different flavors to choose from

• Same taste.

PLACE

Ice Age Ltd… will be establishing its marketing throughout punjab. Ice Age ice creams being an

entirely new product in the market will initially operate only in patiala till further expansion.

Ice Age ice creams being fat free and sugar free requires some extra indegrients and products

which increases the cost of the ice cream by 15 – 20 %. The segmentation of Ice Age ice creams

is done on the basics of “Demographic segmentation” and “psychographic segmentation”.

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Keeping this segmentation in mind the management has taken steps to open its shops at the

following places in Patiala:-

• 22 no fatak 

• Omex mall

• Urban estate

• Jail road(near thapar uni)

• Punjabi university(main campus)

The main production of all the products will be done at the main unit based at “Patiala” and then

will be transported to all its shops at different places all over patiala.

PROMOTION

Push promotion strategy involves getting the retailers/dealers to vouch for your product by

giving them larger profit margins and giving them incentives for the number of sales of your 

 product that are made from their shops/showrooms.

Pull promotion strategy involves promoting your product on a very large scale and making it

visible on the market, thus raising the customers curiosity about the product and hence inducing

them to buy it. We will give all the retailers/direct-dealers a good profit margin than our 

competitors are providing them but not at the initial stage because we are focusing to attract our 

target market using diversified means of promotions and advanced technology to our customers

at reasonable price. We will also give them incentives for vouching for our product at a later 

stage as we settle down in the market. Hence we have decided not to go for push promotion

strategy at present but instead we have decided to go for pull promotion strategy.

• Television advertisements: Advertisements to promote and market our product will be

shown on leading television channels. Major music and family channels will promote Ice

Age Ice Creams as they will reach out to the youth as well as all age groups. Star, Zee,

Sony and Doordarshan etc will be our main promoters.• Radio is the medium with the widest coverage. Studies have recently shown high levels

of exposure to radio broadcasting both within urban and rural areas, whether or not

listeners actually own a set. Many people listen to other people's radios or hear them in

  public places. So radio announcements will be made and advertisements will be

announced on the radio about the product features and price, qualities, etc.

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• Print Ads: Daily advertisements in leading newspapers and magazines will be used to

 promote the product. Leaflets at the initial stage will be distributed at railway stations,

malls, college areas and various other locations.

• Workshops and seminars: Workshops and seminars will be held in colleges to make

  people aware about the company and product features, its affordability and vast

distribution network.

• Banners, neon signs: Hoardings, banners, neon signs will be displayed at clubs, discs,

outside theatres and shops to promote our range of flavors.

• Booklets and pamphlets: Booklets will be kept at ice cream parlors for the customer to

read. These booklets will provide information about our company; the products offered

which suits the customers need according to their taste.

PRICE

The pricing strategy adopted by Ice Age Ltd. for its ice age ice cream is PENETRATION

PRICING because it is a total new brand, which is entering a market, which is already facing

immense competition. And breaking this competition and attracting new requires quality product

at low price. Hence our product will be priced low which will be economical and will encourage

new buyers. Hence we have adopted the penetration pricing method for capturing market share

and establishing ourselves in the market. After considering all the factors i.e. cost of production,

transportation cost, store charges, etc… and after analyzing this data the finance manger Miss

Balbir kaur coated the price list according to the material requirement of the product and the

making charges with considering all other of the store also. According to Miss Balbir kaur the

cost of per scoop of ice cream will Rs. 35 which would earn the company a profit of 20% on

cost.

After deep research and market survey it was found out that the company will meet its break 

even point of production within 1 year of its expected sales of 50000 units per month.

PRODUCT LAUNCH

Ice Age Ltd… being one of its kinds, having a variety of ranges in sugar free and fat free ice

creams, the management decided to launch such a unique product in the heart of the country: .

Since the first manufacturing and selling unit of the company is set up and functioning in

Patiala , the product launch is also to be held in Patiala.

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The launch of Ice Age Ice Creams Parlor was given to FountainHead Promotion and Event

Pvt.Ltd… The launch is to be held at Omex mall in Patiala. All the party event, guest list and

management and co-ordination of the launch are taken care by Mr. Akash Deep Sen. the senior 

executive of the FountainHead Promotion and Event Pvt.Ltd…

To promote our product in an entirely new market and since our product is entirely a new

concept in the market Mr. Akash Deep Sen.has Arranged an excellent guest list. The guests

invited on the launch were basically top role models, ramp models, best doctors who promote

healthy eating, film stars, high profile diabetations, health conscious people on small as well as

 big screen of bollywood and top gym owners.

All the guests will be asked their opinions on the new concept of healthy eating. Their opinion

will be a treasure for our company which would be help full during further expansion and

customer satisfaction.

FUTURE PLANS

Ice Age Ltd… is a entirely new concept in the segment of frozen deserts, because of this reason

the management has decided that currently there would only be 5 outlets of the companies ice

cream parlor through out Patiala. As the company progresses in 3 – 4 months the management

has lots of plans about the future expansion of the healthy eating concept through-out state,

through-out the country and then through-out the world…..

• Give franchise to reputed dealers through-out .

• Slowly capture all aspects of healthy eating i.e. introduction of healthy snacks, juices,

sweets, cakes, chocolates, etc….

• One of the dreams of the promoters of Ice Age Ice Creams is to spread the concept of 

healthy eating through-out the S.A.A.R.C countries.

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CONCLUSIONS

In today’s world of ice creams,Vadilal ,Mother diary and ,Quality walls , etc… are the leading

ice cream parlors in patiala . Their combined sale figures through-out the month is about

1,50,000 units. Their advertising strategies, sales promotions, offers, etc… are not on a

continuous stretch because these parlors are in the market for sometimes……

Ice Age ice creams being on a starting stage, will have a good advertising strategies, sales

 promotions, offers to attract more customers and to make them more familiar to our brand. Due

to our new technique of production and distribution, even after entering the market on platform

 basis and investing more on the special inputs our cost nearly 15% more than the cost of our 

competitors, but with the concept of healthy eating we accept our sales to be around 50,000 to

60,000 units per month.

Due to our special fat free and sugar free ice creams all age groups will be able to enjoy the same

old taste of ice creams but with a dash of health.

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