ASSIGNMENT ON LAUNCH OF

SUBMITTED TO: Dr.B.B SINGLA

SUBMITTED BY: Name- Balbir kaur MBA-II(B) Roll no.5446

SCHOOL OF MANAGEMENT STUDIES, PUNJABI UNIVERSITY, PATIALA.

THE BEGINNING OF THE NEW ERA Indias 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

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.

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), which contribute 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 40F 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

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 karan Ramneek 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

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.

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 consumers 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 Product Range 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

Internal Analysis

External Analysis

Competitors Analysis

Environment Analysis

Marketing Strategies

Future Plans

Conclusion

The first growth vector will involves gaining penetration with the existing productmarket 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.

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

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 consumers 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 players position. SWOT Analysis

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.

45 40 35 30 25 20 15 10 5 0 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

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

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 leaders 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

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.

Frequent or heavy users of frozen desserts would a great target, but this group is not readily identifiable and reachablethese 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 Threats: Lot of competition from existing Ice Cream parlors offering sugar free ice creams. Slightly high in price due to use of special products

Weaknesses: Opportunities: Introduction of new flavors Easy in achieving break even point Prices can be reduced in short run

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 todays ice cream case to suit a

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. 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. 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.

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.

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.

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.

CONCLUSIONS In todays 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.