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We chose Polar Ice cream which you approved through your information mail. The main purpose of the report is to explore the company Polar Ice cream, and give an overall picture of its marketing strategies, products and limitations. We hope that this report will meet your expectations. Sincerely yours, ASPI Reload Chowder Llama Aaron ABA 19th Batch Page 13 Acknowledgements We would like to show our sincere gratitude to Professor Seed Murmur Sharks, our Business Communication Course Instructor, Institute of Business Administration, University Of Dacha who set us with this report and shown us the proper methods for preparing an ideal report.
We are especially thankful to Md. Abdullah AY Amman, Brand Manager, Polar Ice cream, who provided us with information regarding polar and its products and also spent his valuable time and effort he on us. Last but not the least, we would like to thank Mr.. Medaled Kabob, employee of the marketing department of Polar who provided us with quite rare and important data regarding Polar”s marketing strategy, growth and rebinding. Page 4 Executive Summary Polar is the 2nd largest common format ice-cream company in Bangladesh. Its business domain is Dacha Ice cream Limited which mainly specializes in producing a wide variety of premium ice creams.
Polar went out of business in between 2007-2009 due to losses and management problems. But it came back to business with a new branding strategy and gained a greater market share. As of 2011 the falls under the category of common format branded ice-cream. There are chiefly 5 players in the common branded ice-cream market. Polar has a market share of about one third of this market. The demand for ice-cream is the highest during summer, thus Polar”s highest sales occur during the months of April, May and June. A significant growth in the company sales is conspicuous throughout the years.
Ever nice its rebinding in 2009 a boom in the company sales has been observed. Igloo is Polar”s main competitor. Igloo is the largest common ice-cream format company with a market share of 48%, followed by Polar at 31%. Polar”s target customers are kids and teens of cities and suburbs. The company mainly focuses on middle and upper middle class customers. Polar has a vast distribution and packaging system. It distributes its products to the chief cities like Dacha, Chitchatting, Rajahs, Sylphs, Chula and other metropolitan and suburbs. It distributes its products to departmental stores, retail outlets super stores etc.
It also sends ice cream vans to different points. Ever since its return to business in 2011, Polar has come up with new promotional and branding strategies. For its promotion, it uses electronic media, press campaign, television commercials etc. When it comes to future prospects, Polar intends to grab a greater market share and beat Igloo in being the largest common format ice-cream company. Polar”s current promotional activities are mainly focused on activities which result in huge sales in summer. We recommend that they try to get more exposure in summer in order to beat Igloo at that time.
Also they should engage in more activities to increase their sales in off peak seasons. Polar should also try and grab the upper class customers who generally prefer boutique ice-cream. Page 5 Table of Contents 2. 3. 4. 5. 6. 7. 8. Page Introduction Limitations Polar Ice-cream Delight in Every Bite Company History 2 Bangladesh Cream Industry Market analysis Common Branded Segment Sales, Market Size and Market Share 3 4 Company Growth Competitors Consumer Profiles Marketing Strategy Strategic Approach 5 6 7 8 Promotion The Delights of Polar Pricing Distribution and Packaging Rebinding 9 10 12 13 .
Future Prospects 1 1 . Recommendations Promotional Activities Exclusivity and Brand Loyalty Improving the Looks Improving the Products 14 15 16 Page 6 List of Tables Fig: 1 . Market Construct Of Bangladesh Cream Industry Fig 2. 1 : Current Market Composition Fig 2. 2: Annual Consumption Pattern Fig 3. 1 : Company Growth throughout the Years Fig 4: Current Competitors Fig 5: Consumer Analysis of Polar Fig 7. 1 : Combined Market Share of Ice Creams Based On Variety Fig 7. 2: Product Price of Polar 11 Fig 8: Packaging of Polar Goods Fig 9: Polar”s Promotional Campaign for the Year 2011 page 17
This report titled A Study of Polar Ice cream” was prepared as a part of our Business Communication course under the guidance of Professor Seed Murmur Sharks. Methodologies Variety of methods was used to produce this report. We have collected data from different sources. Both primary and secondary sources have been used. Primary Source: Interviews with the Brand Managers of Polar and its top competitor Igloo, as well as having off the record discussions with the staffs of 2 of the topmost boutique sellers.
Interview with an employee of the marketing department of Polar. Survey and Questionnaires Secondary Source Effective brain storming through group discussion. While preparing the report, we faced time constraint. If we had more time, we could have improved the report as a whole. Polar does not disclose any kind of financial, research, production or sales data to anyone outside the company. That is why it was not possible to include the necessary data like wholesale price, price breakdown etc used to estimate different financial and marketing position of Polar.
The data collected from them, accordingly, is not sufficient for an accurate analysis. The consumer survey was based in the urban region of Dacha. Thus the findings Anton be generalized to include the entire consumer base of Polar. Polar Ice cream: Delight in Every Bite The Polar” brand is the first hygienically packed ice-cream brand in Bangladesh which came into business in the year 1987 and started operating in 1989 under the giant industry Dacha Ice Creams Page limited”.
The company started its Journey in Chitchatting by introducing a wide range of products and then extended to Bogart and later to the other cities. Polar offers a wide range of delicious ice creams and tastes made by ingredients imported mostly from renowned manufactures of Australia, Europe etc. The company has its head office, as well as a modern, large-scale industrial plant in Dacha. Polar ice cream is made with Danish expertise, using Danish equipment and technology.
At present Polar have cold hubs in Dacha, Zipper, Chitchatting, Comical, Sylphs, Bogart, Ranging, Rajahs, Chula and Josser and distribution almost throughout the country. Polar also has cream freezer vans in front of school- colleges, offices residence and other points in cities and suburbs. The company had gone out of business between the years 2007-2009 because of factors actors such as management problem, financial constraint, and increase in the cost of raw materials in the global. But currently its market share stands at a staggering amount of 30. 6%. 987 -On 21 August Dacha Ice Cream Industries beginning its Journey 1989 -DILL launched its Ice Cream Product line as a pioneer of Modern Ice Cream Brand 2006-2007 2008 2009 -In this time Sales of Polar Ice Cream goes down due to different reasons -But on that time it was a most preferred brand to the Consumers -In June 2008 New Management took over the total operation -Before re-lunching Polar had passed in a transit time during which they made changes and adjustment in the followings- Wrapper sign, Machine repairing, Logo changes, Introduced new tag line, Distribution setup, DIF Injection, Vehicle Maintenance, Reluctance with advertisement -On 1st March DILL started commercial production -On 13th March- Finished products were sent to the distributor’s and retail’s point Bangladesh Ice cream Industry Before 1964 ice cream market was dominated by unrecognized unbranded approach.
In 1964 Igloo started large scale organized approach under K Raman & Co. Ltd. Now in 2011 the Bangladesh ice cream Industry is a growing market with an estimated market size of TX 395 Core. Page Total Market BIT 395 Branded BIT 308 Common BIT 288 core BIT 87 Boutique BIT 20 core Figure 1: Market Construct of Bangladesh Ice-cream Industry The total ice-cream market is divided into Branded and unbranded sectors. About 395 core of the market share constitutes of around 20,000 local small producers that do not use any brand leverage and compete in the market based on significant lower price in the range of BIT 1-5. 0 Common format ice creams are generally produced and packed in factory.
These are distributed and sold through retail channels/ carts to the shoppers. Branded common format ice cream industry includes firms like Igloo, Polar, Quality etc. Igloo is errantly the market leader. Polar stayed market leader for 10 years (“86-96) in their initial days. Boutique format ice creams are sold through dedicated outlets where consumers can decide what type of packing to use and decide if they want the product for consumption at the premises or take away. Most of these are foreign companies which have taken up the market share substantially in the recent times due to their premium quality and variety of servings. This segment is driven by Dacha and Chitchatting based players.
Club Goleta, Movements, Andersen”s, Basking-Robbins and Sub Zero are the major players in the segment. Market Analysis With increasing market demand, size of the industry is growing. Also the market for branded ice cream is growing amid consumers’ hygiene consciousness. People’s increased purchase capacity has also led to the rise in ice cream consumption at higher prices. Industry insiders claim that the market Page 10 of ice cream, especially the branded ones, started to expand at a faster pace since 2000. The branded ice cream consumers look for innovation and quality, where as unbranded users outside metro cities are currently inclined towards low price and low quality products.