Igloo Report
Igloo Report
Igloo Report
Submitted To:
SOBIA SHAUKAT
Submitted By:
RAFIA NASEER
(2125)
SALIK ASHRAFI
(2195)
Submission Date:
JANUARY 12, 2004
ACKNOWLEDGEMENT
2nd WE would also like to thank all the staff of the company
who helped us in compiling the answers required for this
report. Special thanks to HATIM SHAIKH FAKHRUDDIN (BRAND
MANAGER), he was really helpful and really cooperated with us.
Even though we went to him at a very short notice.
And last but not the least we would like to thank our family
and friends who arranged for us to go to the company and
meet people concerned with our report. With their help and
criticism our report would not have turned out to be so
polished.
Sincerely,
RAFIA
NASEER
SALIK
ASHRAFI
LETTER OF TRANSMITTAL
Dear Madam,
We would dearly like to thank you for the faith you showed in
our capabilities & the encouragement you gave us when
assigning us the report.
Thank
you;
RAF
IA NASEER
(2125)
SAL
IK ASHRAFI
(2195)
LETTER OF AUTHORIZATION
Dear reader
12TH January 2004.
RAFIA
NASEER
(21
25)
SALIK
ASHRAFI
(21
95)
TABLE OF CONTENTS
Title Fly.................................….. I
Title Page...............................…. II
Letter of Transmittal.............…...III
Letter of authorization…………..….IV
Acknowledgement...............……...V
Executive Summary..............…....VI
Table of Contents...................….VII
TABLE OF ILLUSTRATION
COMPANY BACKGROUND
Besides IGLOO also offers other variety of exclusive products for all
kinds of generations to enjoy. With ever-expanding range of products
and flavours, and innovate sales techniques, IGLOO now stands at par
with the best in the country.
MISSION STATEMENT
From the biggest city to the smallest, most remote village, you will find
our ice cream that have made successful. Look in any home and you
will find our ice cream being enjoyed.
Out of largely consumed range of scrumptious products, the supreme ice cream range
is a market winner with its multitude of exceptional and unmatched flavors such as
COOKIES N CREAM, available in the one litres category with reusable plastic bowls.
The brand enjoys a continuous consumer drive towards its offerings due to its strategic
approach and strong market impact in terms of differential variety and quality products.
On the whole, IGLOO has the strongest and most delicious ice cream portfolio
amongst its competitors!
DEMOGRAPHIC ENVIRONMENT:
After analyzing the market IGLOO saw that consumers wanted some
extraordinary flavor, different from what all the companies were
making. So IGLOO thought of COOKIES N CREAM. This is a very much
demanded products category. Ice cream is like by anyone and anyone.
For our product we plan to capture both young and old market. Cookies
n cream is portrays family love.
PSYCOGRAPHIC ENVIRONMENT:
After thinking of this product the major concern was of WHICH COOKIE
was to be used in the ice cream. Imported Oreo or local rite. So it was
decided that Oreo would be used because it already has its own
market. Apart from that it’s a premium cookie, well known for its
quality and taste. From psychographic point of view, consumer’s
perception of a premium cookie was taken into consideration. People
are very status conscious so by using Oreo in cookies n cream we have
provided them the status and quality both.
ECONOMIC FACTORS:
TECHNOLOGICAL FACTORS:
Usage of a good & new technology for better quality, day by day
technology advances and to keep up with this, the company has to be
at its best to compete with its competitors. Igloo has ordered new
machinery from abroad to reduce the time it takes to make the ice
cream. With the use of new technology the ice cream will be even
made in less cost.
SOCIAL-CULTURAL FACTORS:
POLITICAL FACTORS:
The milk and cookies are imported from abroad, but due to war on Iraq
and Afghanistan there is a treat of restrictions on imports. This would
cause problems for IGLOO.
Although the positive features are that the government is laying a lot
of emphasis on locally produced items. Thus Igloo Company has and
overhand on this factor. They produce locally, except for that they use
imported ingredients!
TARGET MARKET
People living in urban dwells of Pakistan belonging to middle and upper class
who shop in categories A & B retail outlets. Our target market is mostly
young and energetic people and oldies as well who are fun loving, family
loving and extrovert. This group is both male & female, aged 16-50. Members
of this group purchase ice cream for different occasions, they want that type
of ice cream that give them enough opportunity to indulge their feelings and
emotions in an unusual and special way.
MARKET SEGMENTATION
Personal Characteristics
Age • 16-50years.
Gender • Male, Female.
Education • Going to or went through High school and college
education.
Marital status • Single, Married.
Social class • Upper middles, & upper class.
Occupation • Students, professionals, career people.
Psychographics
Interest • Family Having fun, friends and good time.
Opinions • Under western influence, considers top of the line
products friendlier and want unique things.
Personality • Independent, extrovert, friendly, expressive, fun
loving, INNOVATORS.
Behavioral
Occasions • Eids, Birthdays, Anniversaries, Special days.
Benefits • Convenience, positive feelings, creation of bond,
relationships.
Usage Rate • Light to medium Users.
Attitude Towards product • Enthusiastic, Positive.
Readiness Toward Product • Interested, Intending to buy.
Geographical
Region • All.
City • Concentrated in Hyderabad and Karachi.
Density • Urban.
Climate • Southern (moderate).
COMPETITION: HEAD ON
IGLOO ICE CREAM WALLS ICE CREAM
MARKET SHARE
Ice Cream Category Market
Shares
13%
15% Walls
Igloo
Others
72%
OPPORTUNITIES:
• Westernization of Pakistani Society
• Relatively good growth of market
• A major opportunity for igloo exists in the ice cream industry. It could
position itself as a strong alternative to ice cream parlours by providing the
same range of flavours and variety.
• Igloo could introduce a variant of its existing product such as sugar free and
low calory ice cream.
• Igloo could still improve its distribution network. Presently igloo mainly
caters to Karachi and Hyderabad outlets. Igloo should help broaden the
consumer base for the product and develop new markets.
• An open avenue for igloo exists in the area of event sponsorships.
• A very important opportunity for improving igloos image could come from
social cause marketing.
WEAKNESSES:
• Lack of focus due to multiple brands.
• Unhealthy competition in the corporate culture.
• DIRECT competition from Walls and Yummy.
• Igloo must concentrate on heavy promotional advertising in order to maintain
its market share. More enthusiastic efforts need to be carried out.
THREATS:
• Threat of bigger competition in the next two years, new entrants of course poses a
forever-occurring threat.
• Instability of Pakistan’s Political system.
• Keeping in view the current world affairs specially the Afghan war, Iraq war
and the extent of international involvement it could be a possibility that
imports into the country are stopped. This would mean that raw material
supply of OREO cookies for igloo would be interrupted.
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LEVELS OF PRODUCT:
1. CORE PRODUCT: ice cream
2. ACTUAL PRODUCT: the brand name COOKIES N CREAM, imported
OREO COOKIES, vanilla ice cream, the unique and eye-catching
packaging.
3. AUGMENTED PRODUCT: guaranteed satisfaction, and the
customer services center, to call if consumers are dissatisfied or
have questions.
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BCG MATRIX: Igloo ice cream product line:
High
COOKIES N
CREAM
Low
CLASSIFICATION OF PRODUCT:
The product can be classified as a convenience product but some
consumers may also take it as a shopping product. It is a convenience
product because little planning is done and there is little comparison
and low shopping effort involved. The reason it may also be called a
shopping product is that it is not so frequently purchased and the
consumer may be double-minded to purchase some other brands
available. Also the price is higher as compared to other FLAVOURS in
the SAME brand.
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They change the product that has neared its due date and replace it
with the new ones so as to satisfy customer.
If one looks at a category, the product life cycle seems to be an
important determinant for all sorts of decisions. These may involve
pricing, promotion, marketing etc. Generally a product should be kept
in the growth stage as long as possible.
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IGLOO
(COOKIES n
CREAM)
LOW QUALITY
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PRODUCT MIX
RANGE SIZE FLAVOURS
(LITRE)/RS
.
1) 1 LITRE Peach, White vanilla, Shahi kulfa,
CLASSIQUE RS65/- Pistachio, Chocolate, Orange, Pineapple,
½ LITRE Mango, Pine Cool, Strawberry, Tutti fruti.
RS35/-
2) SUPREME 1 LITRE Strawberries n cream, vanilla n chocolate
RS 100-115/- fudge, chocolate & chocolate chip, choc o
mint, pinacolada, caramel crunch, pista
nut, mango n cream, dates n almonds,
blue berries n cream, butter scotch n
cream, coffee, chocolate crispy,
strawberry cheese cake, Coffee Toffee
COOKIES n CREAM.
3) FUNDAE RS 20/- Chocolate, strawberry, pineapple.
CUP
4) SLICES ------------- Vanilla, Shahi kulfa, Pistachio, Chocolate,
Mango, Strawberry.
5) LOVE, 1 LITRE Strawberry n vanilla, chocolate n vanilla,
DESIRE, RS 65/- banana n toffee.
BANANA
REPUBLIC.
6) 1 LITRE Shahi kulfa, chocolate chip, mango.
TEMPTATIO RS8O/-
NS ½ LITRE
RS50/-
7) IGLOO 10 LITRE ALL scoops available in 10-litre packing.
-------------- (An average of 100 scoops in each
packing)
8) LARGE RS 15/ Vanilla, chocolate, mango, Tutti fruti,
CUP Shahi kulfa.
9) MINI CUP RS 10/- Vanilla, orange, strawberry, pistachio.
10) CONES RS 15-20/- King cone, Royal Butterscotch Cone &
royal cone.
11) DIET RS 22/- Vanilla & strawberry.
IGLOOS
12) OTHERS RS 5-10/- CREAM POP (vanilla), MAMAMIA,
INCLUDE TROPICA, KOOL KULFI, SIGNAL POP, REAL
FALSa BAR, CHECKER, TURTLE, CHOC
ICE, CHOC BAR.
13) CAKE RS 160/- --------------------------------------------
14) FAMILY RS 110/- The Real Ice Cream Cake
DELIGHT
B. PRICE
The COOKIES n CREAM ice cream pack is available for rs.115. It is a
very reasonable price charged by igloo because of the imported milk
and cookies used in it.
This price is set after giving a discount/ allowance of 17% to the
retailers.
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C. PLACE
Ice-Cream industry comprises of wrapped impulse and multi pack
family markets. Both are equally potential markets having many
competitors from local to multinational firms. Sellers try to develop
differentiated offers for the different customer segments and for this
purpose it would be hard to find a premium ice cream like COOKIES N
CREAM in a small general store in old city or Malir since quality tends
to deteoriate. Therefore adequate distribution is necessary so that the
target market tends to get COOKIES N CREAM suppliers from the
COOKIES N CREAM is distributed directly by IGLOO and no external
distributors are used.
Many Ice-Cream firms give free deep freezers to the retailers so as
to promote sales and usage of their product. IGLOO did this very
extensively
Having 2000 deep freezers in over all Sindh and 3000 deep freezers In
Karachi. The retailers are forbidden to put the products of their
competitors in these freezers. A sticker showing all the product line of
the firm is present on almost sides of the freezer so that customers
know which are the other flavors and other new Ice-Creams introduced
by the company.
DISTRIBUTION CHANNELS:
The strong channels also play an eminent role in the brand
building along with a consistent positioning that supplements the
company’s efforts in giving the market what they want most- premium
quality ice cream range. At present, IGLOO is providing its range of ice
cream to the valuable consumer segments through numerous
channels, which are as follows:
IGLOO
(PRODUCER)
IGLOO own
Distribution system
Retailers
(COOKIES N CREAM)
FIANL
CONSUMERS
D. PROMOTION
We consider this to be the key element in the marketing mix for
our product. Our consumer is not highly price conscious.
The final goal of the advertising was to introduce trial amongst the
target market. However now there is good awareness of the brand in
the market.
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COMPETITOR ANALYSIS
“By knowing our Competitors we may be able to predict their
next moves,
exploit their weaknesses and undermine their strengths.”
Competitors for IGLOO in general are many; in fact they include all
the ice cream providers. However for COOKIES N CREAM we would like
to define our competition strictly in terms of the target market. In this
definition we would consider the product category level.
In general the list of competitors would include the following.
WALLS cookies n cream
Moven Pick Ice cream
Snoopy Ice cream parlor
Gelato Affairs Ice cream parlor
Imported Ice creams like Haagen Daaz, Dove, and galaxy available
at places like Aghas
For the purpose of analysis we will group the competitors into two.
First we would discuss our main competitor i.e. WALLS cookies n cream
and then the rest in one group.
Price
Consumers prefer to buy a igloo’s cookies rather than an walls
cookies n cream. Even if they do have to pay a little extra than the
remaining range.
Promotion
Even though walls have spent a lot of bundle on advertising, still it
has not been able to gain igloos market share for this particular
product.
Place
In terms of price walls followed the same strategy as igloo. The
distribution was limited and it was only made available at selected
places.
Other Competition
As mentioned earlier in our list of competitors we consider foreign
chains and ice cream parlors to be some source of competition for us.
These parlors or products basically provide choice to the consumer for
satisfying their need for ice cream. We mentioned earlier that these
competitors have to be monitored in terms of market entry distribution
etc. For Example: Moven pick has an Ice Cream parlor at park Towers.
This needs to be analyzed as to its impact on the sales of igloo cookies
n cream. Also small packs of Moven Pick are available at few locations
with the smallest pack costing Rs 55. Even though this product is
priced above cookies n cream, it can pose to be a serious threat. Other
competitors as mentioned include ice cream parlors like Gelato Affairs,
Snoopy etc. The problem with these companies is that they cannot
create awareness like igloo. People will only come there if they know
about it. Amongst the ones mentioned snoopy is the oldest and has the
greatest no of outlets.
The advantage these parlors have is that of the atmosphere. They
provide not only ice cream but also a place to sit. No company selling
an OTC product can offer that.
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Product
More emphasis has to be placed on promoting the product and
increasing brand awareness and brand recall rather than trying to
modify a product that is already doing quite well as per expectations,
objectives and targets set by the company. Long-term suggestions are
such that we feel igloo should look into more flavors as are available
abroad.
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