Final Report

A Report On

“Launching a New Product”

Submitted to the course instructor in part-fulfillment of the course requirement for Introduction to Marketing

Prepared by:

Shafayat Hossain ChowdhuryID: 052 061 030

Prashanta MondalID: 053 273 030

Aunima Nazmun NaharID: 052 164 030

NargisID: 052 032 030

Prepared for:

Ms. Nazlee Siddiqui

Submission Date:

March 30, 2006

TABLE OF CONTENTS

Page No.

EXECUTIVE SUMMARY……………………………………………………………..02

1. Introduction…………………………………………………………………….03

1.1 Ownership Structure & Business of the Company in Brief…….03

1.2 The New Product to be Launched………………………………05

2. Strategic Planning..............................................................................................05

2.1 Company Objectives & Goals…………………………………..05

2.2 New Product Details…………………………………………….06

2.3 Customer’s Benefit……………………………………………...07

2.4 Company’s Benefit……………………………………………...08

3. Marketing Process…………………………………………………………….10

3.1 Target Market Profile…………………………………………...10

3.2 Positioning………………………………………………………11

3.3 Brief 4P Strategies with the Rationale…………………………..12

4. Conclusion……………………………………………………………………...15

APPENDIX……………………………………………………………………………..17

Market Table…………………………………………………………………….17

Micro & Macro Analysis………………………………………………………...21

Assumptions……………………………………………………………………..23

REFERENCES………………………………………………………………………...24

1

Executive Summary

This paper has been prepared on the phase of well known Abul Khair Group to launch

premium ice cream with the brand “Sub-Frost”, a new brand for the company. The brand

is differentiated in terms of quality, uniqueness and nutrition. The company is going to

launch the new product with strong company objectives and goals, just like as it uses for

its existing products. The new product is going to bring a number of benefits for the

company as well as the consumers. The consumers will enjoy a taste of international

appetite in Bangladesh. A well calculated target market profile for the new product has

been prepared and according to the profile the most important segments are ambitious

students and ambitious young professionals of city areas. The positioning of the product

has been done accordingly to meet and exceed the expectations of the target market.

Certain company strategies to deal with the 4P (product, price, promotion and placement)

has also been worked out. The market table deals with the data of the competitors’

products. A proposal has been included before ending the market table. An analysis on

micro and macro environment has also been prepared to support the new portfolio.

Despite some limitations, which could be overcome by certain precautionary steps, the

conclusion suggests that the new plan would work for the company.

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1. Introduction

1.1 Ownership Structure & Business of the Company in Brief

Abul Khair Group is one of the largest and rapid growing companies in

Bangladesh. It is a family oriented business. It was established in 1953 by late

Abul Khair. The company started with Abul Bidi, still a familiar brand for those

who smoke bidis. Later on, the company expanded its business to other sectors.

It is now one of the most successful companies in terms of professionalism and

management excellence. The main business objectives are to prove guaranteed

quality, fair and competitive price and optimum services leading to total

consumer satisfaction.

The product lines of Abul Khair Group include Fast Moving Consumer Goods

(FMCG), Industrial Products and Trading. The company has its prime

manufacturing ventures in steel products, food and beverage, condensed milk,

full cream milk powder, cement, tobacco, soyabean oil, coconut oil, butter oil,

tea etc. Over 10,000 personnel are working for this renowned company directly.

Among the several units of Abul Khair Group, milk and beverage is one of the

most vital divisions of the group. This division produces and packs condensed

milk, powder milk, several types of juice, flavored milk, drinks, snacks and

supreme quality tea. All of these products ensure supreme quality, availability

and customer satisfaction. All the products are produced under better hygienic

conditions by using sophisticated technology. Total Quality Management

(TQM) is practiced in this division (milk and beverage) and that's why the

company was awarded with the certificate of ISO and HACCP. Premium

quality raw materials are used to produce all the products. These products are

distributed under a strong distribution system. For this reason, the company has

a large number of satisfied and loyal customers with strong brand image.

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The vision of the company:

“To attain quantitative and qualitative leadership in all the sectors we

operate.”

The mission of the company:

“Consolidate our position in the areas where we lead and continue to invest in

people, processes and technology to enhance our organizational capability to

ensure long-term and substantial growth. Embracing change at every level to

achieve highest level of professionalism remains as the key focus for all.”

The different sections of Abul Khair Group are:

Abul Khair Steel Limited

Abul Khair Consumer Goods

Abul Khair Tobacco Limited

Abul Khair Oil Limited

Shah Cement Industries Limited

The products of Abul Khair Group are:

C.R. Coil

C.G.I. Sheet

G.P. Sheet

Ridging

Jhalor

Star Ship Condensed Milk

Star Ship Full Cream Milk Powder

Star Ship Fruit Juice

Star Ship Mango Milk

Star Ship Chocolate Milk

Seylon Tea

Shaad Snacks

Marine-Special Blend

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Sun Moon-Filter Kings

42 No. Abul Bidi

Special Abul Bidi

Star Ship Soyabean Oil

Star Ship Coconut Oil

Star Ship Mustard Oil

Shah Cement

1.2 The New Product to be Launched

The new product that we want to launch from this company is premium ice

cream, a new portfolio for the markets of Bangladesh. The new product will

offer completely unique varieties, will include nutritious ingredients and will be

produced according to the international standards in order to provide the

consumers of Bangladesh an inexperienced appetite.

2. Strategic Planning

2.1 Company Objectives & Goals

The objective of the company is to build profitable customer relationships by

serving the appetite of the people of Bangladesh with international quality

premium ice creams, with the sense of a difference.

The company will start by launching four varieties of premium ice cream. Later

it will add more unique varieties and keep on improving quality. The company

is reluctant to have any compromise on quality.

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The short term goals of the company:

To capture the market shares of premium ice cream by 90%.

To capture 20% market shares of total ice cream industry within 5 years.

To cut down the production cost of premium ice cream by 15% within 3

years.

To sell ice creams worth BDT 10,000,000 the first year.

To introduce another 15 unique varieties of premium ice cream within 3

years.

2.2 New Product Details

We all know what ice cream is. The main idea of ice cream is a chilled layer of

cream. Milk is the major ingredient to produce cream, which is later chilled and

thus we get ice cream. The major ingredients required to produce ice cream are

milk, sugar, food colors, stabilizer, preservatives, glucose, vegetable fat,

emulsifier, flavors etc.

Nowadays the making of ice cream is not just stuck to its previous ingredients,

but new and new ingredients like fruits, cocoa, nuts, biscuits, wafers, honey etc.

are being used to craft new varieties of ice cream and when done so the ice

cream becomes a premium ice cream. Premium ice cream is quite different in

appeal, appearance, packaging, flavor, taste, and price than general ice cream.

So keeping all these in mind, the new product has been developed. The new

product is promised to maintain and improve quality, offer unique taste and

variety, and to give nutrition to health. The new product will enter the market

with four different unique varieties; Mixed Fruits, Sundae, Coconut Almond Joy

and Double Caramel Decadence.

Mixed Fruits and Sundae to be marketed in transparent and hygiene disposable

cups, to stay to the promise of quality, with a net weight of 200ml. Coconut

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Almond Joy and Double Caramel Decadence to be available in stick and the

packaging to be used is semi transparent and hygienic packaging paper, to stick

to the promise of quality. The logic to use transparent and semi transparent

packaging is to attract the consumers, which is also a unique idea. The unique

shape and ornamentation of the varieties will be authentic, attractive and

appealing, which will be visible through the transparent packages.

The ingredients are milk, sugar, vanilla flavor, preserved fruits, glucose,

stabilizer and emulsifier for Mixed Fruits. For Sundae the ingredients to be used

are milk, sugar, vanilla flavor, chocolate flavor, strawberry flavor, chocolate,

preserved strawberry, cashew nuts, emulsifier and stabilizer. For Coconut

Almond Joy the ingredients are milk, sugar, vanilla flavor, coconuts, cocoa,

almond nuts, chocolate, emulsifier and stabilizer. Double Caramel Decadence

will be made using milk, sugar, vanilla flavor, caramel, chocolate, nuts, biscuits,

emulsifier and stabilizer. With all these outstanding and nutritious ingredients

the taste of the unique varieties will be a new experience for the consumers of

Bangladesh.

However the consumers will have to pay a marginal high price for consuming

the premium product. The introductory prices for Mixed Fruits and Sundae will

be BDT 35 and for Coconut Almond Joy and Double Caramel Decadence will

be BDT 28.

2.3 Customer’s Benefit

People eat ice creams for different reasons; some to get relieve from thirst, some

for pleasure, some for taste and some to enjoy a special occasion. There are four

reputed brands in the ice cream industry. So the consumers have very few

options. Besides they don’t have any options for premium ice creams. The new

brand can create a difference in this case.

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The field is quite competitive. Thus the producers are concentrated to hold the

market shares and earn good returns. Some producers are offering low prices to

hold the market shares and in a process are forgoing the quality. As consumers

we have certain rights and the law protects our rights. We have the right to eat

quality foods. But in the ice cream industry, only Igloo of Abdul Monem Ltd.

and Kwality of Sanowara Drinks & Beverage Ind. Ltd. have managed to

maintain international standards and as a result Igloo received ISO & HACCP

certificate and Kwality received ISO certificate. The new brand will protect the

rights of the consumers by producing ice creams of international standards from

the very beginning and the consumers will benefit from it.

The new brand will provide quality, uniqueness and nutrition. The consumers of

Bangladesh have tasted quality ice creams, but not with unique taste and

varieties, which only the new brand will provide. Besides, no ice cream has

been able to concentrate on nutrition. The new brand concentrating on a new

concept like nutrition, which is very important for human health, will add

benefits to consumers.

2.4 Company’s Benefit

Bangladesh has a large consumer market. In this large market there are four

major competitors in the ice cream industry; Igloo, Kwality, Polar and Savoy.

The ice cream industry has been through strong competition from the very

beginning. The competition will grow even harder with the introduction of one

more new brand. Working from bit different perspectives can help the new

brand to avoid the competition directly and grow eventually. Launching the

product with some specialties can do the job. Thus it’s better to concentrate on

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quality, uniqueness and nutrition, which is a new concept for ice creams in

Bangladesh. If the company succeeds in doing so, then it will see its sales

boosting up.

Milk and sugar are natural products of Bangladesh. So the two most important

ingredients required to produce ice cream are in plenty in Bangladesh. Thus the

cost of producing ice cream will be less as the main ingredients does not need to

be imported, which is a benefit for the company.

Abul Khair Group is already related to the milk products. So they have the

major ingredient for ice cream, which is a benefit for them. Their production

cost for ice cream will be less than other competitors.

A strong supply chain management can help a new product to gain success. The

company has a very strong supply chain management. The suppliers both home

and abroad are reliable and efficient, which is a benefit for the company.

The demographic environment is a factor affecting the sales of a product. About

72% population of Bangladesh fall between the age of 3-35 and they are the

consumers of 92% of the total ice cream industry. So the market is quite

attractive and promises good return, a benefit for the company.

The economic environment of Bangladesh is improving. People now have more

buying power than before. Besides people are now falling for quality and

premium products. This also adds a benefit for the company.

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There aren’t any policies restricting the ice cream industry and the cultural

beliefs also don’t go against the ice cream industry, and these are benefits for

the company.

Goodwill and corporate image influences sales. The company has goodwill and

excellent corporate image in the general public, the media, and the government

and this also adds to the benefits for the company.

3. Marketing Process

3.1 Target Market Profile

Geographic

Region: City areas

Demographic

Age: 5-49, but special emphasis on age groups of 12-19 and 20-34

Reference Group: Sportsmen and rock stars for age group of 12-19;

doctors, journalists and writers for age group of

20-34

Occupation: Students and young professionals

Psychographic

Social Class: Upper middle class to upper uppers

Personality: Ambitious and gregarious

Behavioral

Benefits: Quality and uniqueness

Readiness stage: Knowledge

Attitude toward product: Enthusiastic and positive

3.2 Positioning

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The benefits that customers are looking for in ice cream are

Product – Quality, uniqueness, nutrition, hygiene factors, and exception

taste

Price – Reasonable price

Promotion – Well informed and different incentives (discounts, free etc.)

Placement – Availability and convenience (super stores, departmental stores

and general stores with refrigerating facilities)

As the product is a premium one, the product can not position on price and

placement. So it’s better to position on product in terms of quality, uniqueness

and nutrition. Quality has become a demanding concept in all the products and

services nowadays. It’s not just that people are satisfied with a quality product

or service, instead they keep demanding a higher quality product and that’s why

it is so important to develop the quality of a product or service through times to

hold the market share. So trying to position without quality for a premium

product would be really destructive. As per the target market profile, the

product is targeted towards ambitious and gregarious people. These types of

people generally tend to fall for something exceptional and new. Besides, no

other competitor has positioned on uniqueness of this product. So positioning

the product on uniqueness would be a great distinctive point. Ice cream is

generally treated as junk food and unhealthy. A change in this concept can help

to capture the market share and also gain a good image. So adding nutritious

ingredients to produce ice cream will create a new trend and demand in ice

creams. Thus positioning the product in terms of nutrition would be a revolution

in the industry.

Positioning Statement

To ambitious young people, who seek for premium quality and uniqueness, Sub-

Frost is the ice cream that will fulfill your aspirations and exceed your

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expectations through its premium quality, uniqueness and nutritious facts. So

you decide, will you have junk ice creams or Sub-Frost?

3.3 Brief 4P Strategies with the Rationale

Product

Brand name is something that differentiates the product of a company from its

competitors. It is very important to choose a brand name that reflects the image

of the product and appeals to consumers. “Star Ship” is a famous brand name of

Abul Khair Group, but the name does not suit well for premium products. In

addition the brand name for ice creams should reflect something chilling and

misty. From these aspects “Sub-Frost” seems to be a perfect brand name for

premium ice cream. With this new brand name Abul Khair Group will enter a

new product category. This strategy is known as New Brands according to the

Brand Development Strategy. The new brand “Sub-Frost” would work because

of the concept premium ice cream, which is first in Bangladesh. Moreover the

consumers will discover unique varieties of ice cream with nutritious

ingredients, which no other ice cream in Bangladesh has provided, and will

experience an appetite which they have never had before. Furthermore “Sub-

Frost” is committed to maintain international quality and to inform customers

about all the facts related to the consumption of the product.

Price

Price is a very important factor for a new product. It is the base of a product to

survive and boost up in the market. The new portfolio and the target market for

it is designed in such a way that market skimming results in the best option for

pricing. First, “Sub-Frost” is a quality premium product and it holds the image

of unique variety as well as nutrition to support the introductory high prices,

which is 10%-20% high than that of competitors general products. Then, the

initial production cost, which is a bit high, can be covered up given the

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introductory prices for different varieties of “Sub-Frost”. The profit may be less

at the beginning, but customer satisfaction and reliability will maximize the

profits in the long run. Next, there are already competitors in this market, but

“Sub-Frost” can be easily differentiated from the competitors’ brands in terms

of its special features. The features that are being offered by “Sub-Frost”

actually make the competition indirect. To stop the competitors from competing

directly the company must collect the certificate of solitary production and

distribution of premium ice creams for at least a year from the government with

the help of its existing strong liaisons.

Placement

Appropriate placement is one of the basics to capture the market share. “Sub-

Frost” is a premium brand ice cream and has a specific target market. So it

should be distributed in such places where actually people value something

premium and have the capability to consume it. People also tend to spend more

when they are on shopping. Keeping in mind all these aspects what seems best

for placement are all types of super stores, famous departmental stores of a city,

posh departmental stores of a city, some selected general stores of prosperous

residential areas, and some well known departmental stores as well as small fast

food shops of exclusive shopping centers. People generally spend more when

they are on holidays and when they dine out. So well run continental

restaurants, exclusive fast food outlets, posh Bengali restaurants, and hi-deluxe

hotels will be good options for placement. Also different restaurants and

departmental stores of amusement parks, picnic spots, family recreational spots,

and tourism spots can increase the sales of the product. The selected options

should have good refrigerating facilities so that the consumers get the actual

experience and unaffected taste. Intensive distribution will be the process by

which “Sub-Frost” will reach consumers. How the distribution channel operates

is figured out.

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There are no chances for channel conflict in the consumer segment as the

company will use its own distribution channel and supply the products at same

prices to all retailers. However a conflict may arise if the retailers sell the

products to business segment. To avoid this conflict the company must make an

agreement with its business segment stating that the business segment will

purchase the product only from the company. The company can also supply the

product to business segment at the cost it supplies the product to retailers. This

will stop the retailers from selling the product to business segment as the

retailers will earn no profits.

Promotion

The people of Bangladesh are much familiar with ice cream and with the

introduction of ice cream parlors some people also know what premium ice

cream is. Thus the target market for premium ice cream has some knowledge

about the product. But the target market has no idea about the brand and its

specialties. So according to buyer-readiness stage the target audience is in the

awareness stage. The company has to take cautious steps in order to gear up the

product to the purchase process. The company has to promote the product in

such a way so that the people start liking it. And once that is done the next

processes will take place much smoothly as there aren’t any direct competitors

in this field. The two best ways to promote the product would be advertising and

public relations as personal selling and direct marketing would be too expensive

Producer

RetailersSalesForce

ConsumerSegment

BusinessSegment

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and inefficient strategies for the promotion of the product and sales promotion

would not be a good strategy as it will obstruct the image of the premium

product. Starting with advertising, curiosity about the product can be created by

“to be continued…” ads, which are recent trend in Bangladesh. These ads are

generally put in the bottom part of the first or third page of the popular dailies.

The ads must be prepared visualizing information on the new product’s

specialties, quality, uniqueness and nutrition; and the words being used must be

attractive enough to catch the eyes and work the brains of the readers and make

them curious to look in the newspaper the next day. The next day people get to

know the product in more details along with the brand name. The ads must be

strong enough to regulate the curious mind and create eagerness towards trying

the product. This strategy has proven to work well. Putting ads on TV channels

like Ntv, Channel One, and Channel i between news breaks and popular family

soaps is also a good way to promote the product. The ads should motivate the

consumers to try the product. For public relations, the different aspects of the

product can be introduced by a press release. The company can also sponsor

some social welfare programs like forestation, scholarships, saving wildlife etc.

to build a good corporate image and gain publicity.

4. Conclusion

From the analysis of the reporting it can be stated that the new portfolio is well

set for the marketing environment of Bangladesh. The new brand will create a

clear distinction with the competitors’ brands if it keeps its promise of quality,

uniqueness and nutrition

However there are some limitations. But given the opportunity of a good market

for the product, promising returns on investments, corporate image of the

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company, strong liaisons of the company and willingness of the company to

achieve goals, the limitations could be overcome.

As investment costs are too high and Bangladesh lags behind in technology, so

the technological environment actually creates some barriers for the new

portfolio. But after the high investment costs there will be no emerging costs in

the sector and also the market for the new portfolio promises good returns on

investments. The new portfolio will increase the goodwill and corporate image

of Abul Khair Group. So weighing the future benefits it would be wise of the

company to engage itself to the process of launching the new product.

The tough competition in the industry seems to be a barrier for the new portfolio

in general, but looking deep into the matter with wide views results in a positive

feedback. The product is a premium one and none of the competitors are

engaged in the premium market for the product, which actually makes the

competition indirect.

The competitors can create a threatening situation by making their way to

premium ice creams. However to stop the competitors from doing so the

company has to use its strong liaisons to acquire a certificate of solitary

production and distribution of premium ice creams for at least a year from the

government.

So it can be concluded that the plan to produce and market premium ice creams

in Bangladesh by Abul Khair Group would be a revolution in the ice cream

industry and the plan would work for the company.

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APPENDIX

Market Table

Brand Name Pack SizesPrice

(BDT)Marketing Company’s

Name

Manufacturing Country

Selling Propositions

KWALITY

Sanowara Drinks & Beverage Ind. Ltd.

Bangladesh

Good Taste

Lolly - 8

Joy - 10

3 Bite - 12

Kimi - 12

Cup 100 ml 12

Rocket - 15

Chocobar - 15

Fun - 18

Milk Bar - 20

Cone - 20

Box ½ L 55

Box 1 L 100

Ice cream Cake

1 L 150

Ice Cream Cake

1.5 L 200

17



Name



IGLOO Abdul Monem Ltd.

Bangladesh Quality and Good Taste

Lolly - 8

Sandwich - 10

Cup 100 ml 12

Shell & Core

- 12

Chocobar - 15

Cone - 20

Mega - 20

Single Sundae

- 20

Macho - 25

Nuggets - 25

Box ½ L 55

Box 1 L 100

Double Sundae

- 150

Party Time (Gift Box)

- 150

Ice Cream Cake

1 L 150

Ice Cream Cake

1.5 L 200

18



Name



POLAR Dhaka Ice Cream Ind.

Ltd.

Bangladesh Availability

Lolly - 8

Raspberry - 10

Vanilla Strawberry

- 12

Cup 100 ml 12

Penguin - 15

Chocobar - 15

Vanilla Toffee

- 15

Jumbo - 20

Cone - 20

Crunchy - 20

Super Chocobar

- 25

Cup ½ L 55

Box 1 L 100

Box 2 L 190

Ripple Ice Cream

1 L 120

Ice Cream Cake

1 L 150

Ice Cream Cake

1.5 L 200

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Name



SAVOYSavoy Ice

Cream Factory

Bangladesh Low Price

Cup 100 ml 10

Chocobar - 12

Box 2 L 150

* Data gathered from surveying different general stores of Banani Commercial Area on February 1, 2006

Proposals for the New Brand



Name



SUB-FROST

Abul Khair Group

Bangladesh Quality, Uniqueness

and Nutrition

Mixed Fruits

200 ml 35

Sundae 200 ml 35

Coconut Almond Joy

- 28

Double Caramel

Decadence

- 28

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Micro & Macro Analysis

The Micro Analysis for “Sub-Frost”:

The Company – Abul Khair Group is a renowned business firm of Bangladesh. It has a good reputation in the field of manufacturing. It also contributes much in the economy of Bangladesh. The goodwill has helped the company to gain success in new businesses. All these have been possible because of the well disciplined and better management of the company. The management views its employees as essential contributors towards the growth of the company. The management makes the employees feel the importance of being a team member and maintains a mutual relationship with them. Viewing all these aspects we can say that the environment of the company is excellent to start up the new business.

Suppliers - Abul Khair Group has a good number of efficient suppliers both in home and abroad to support their businesses. The company is already related to milk products, which means they have suppliers of milk and sugar. This is a positive sign for the company as they don’t have to look for new suppliers of milk and sugar, the main ingredients to produce ice cream. But they will have to find some foreign suppliers for other ingredients such as preserved fruits, almond nuts, caramel, wafers, stabilizer, emulsifier, food color, preservatives, glucose, vegetable fat, flavors etc. as these are not native products of Bangladesh. Finding foreign suppliers, both reliable and efficient, seems to be an intense problem. But given the goodwill of the company and the company’s current linkage with foreign suppliers, this problem can be overcome.

Marketing Intermediaries – Abul Khair Group has very strong marketing intermediaries, and it can be easily judged by traveling different parts of Bangladesh. Even in the rural areas, the goods and services of the company have made their way and are making good business. The company uses its own distribution channel instead of handing over the job to others and this is the secret behind the company’s strong market share. The distribution of ice cream is often handled by its producers in order to maintain quality and to avoid damage. The company is right on to the track as it already has its own distribution channel. However, the company needs to make investments to purchase cold storage supply vans.

Customers - Abul Khair Group fulfills the needs of a large number of consumers by providing them their expectations. It is a natural tendency of the people to try a new product, and having the goodwill; Abul Khair Group is just in to it. People will try the new product and if it meets their expectations, then Bravo!!! As it is said, “care for the customers, and they will care for you.” Not only the consumer segment customers, but also the business segment customers, such as well run continental restaurants, exclusive fast food outlets, posh Bengali restaurants, and hi-deluxe residential hotels, should be taken care of. The consumer segment

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customers will be served via super stores and departmental stores. It is not a tough deal and thus it can be stated that the environment is favorable.

Competitors - Abul Khair Group has to face an average number of competitors in the field of ice cream manufacturing and marketing. But if it maintains quality and fulfills the consumers’ expectations, then it will have to face two real competitors, Igloo and Kwality. Still the journey will be quite challenging as both Igloo and Kwality have high market shares and have been in the market for long times. Abul Khair Group has managed to keep a friendly and co-operative relationship with its competitors in the current businesses, which is a must in today’s world of business. It should follow the same approach in this case too in order to eliminate the unfavorable situation in the environment of competitors.

Publics – All the publics; financial, media, government, local, general, and internal has a positive view towards Abul Khair Group, which is a very good news. The public environment is indeed a great gift for the new portfolio.

The Macro Analysis for “Sub-Frost”:

Demographic Environment – The people of all age groups are consumers of ice cream, but generally the people between the age of 5 and 35 consume 94% of the total ice cream of Bangladesh. About 72% of the total population falls between this age group. So the market of ice cream is very broad. Many people, who are now between the age of 30 and 35, will consume ice cream even after they cross 35 and many infants will grow old enough to have ice cream. So the future market of ice cream is also very bright. Overall the demographic environment for ice cream is significantly favorable.

Economic Environment – Bangladesh is a developing country and it has managed to keep an excellent GDP over the past three years. The purchasing power of the people has also increased, which has led people to spend more on commodities which are not necessities and on leisure. Ice cream is not a necessary commodity and still the market has been quite optimistic in the past years. Now with the increase in purchasing power of the people the market is expected to grow even further. Besides people are now willing to spend on quality and unique items even if it is costly. As “Sub-Frost” is aimed to provide something unique with international quality, a bit marginal high price from the competitors will not be a problem given the current economic environment of Bangladesh. Therefore the economic environment favors the new market.

Natural Environment – The main ingredients of ice cream are milk and sugar. Sugar comes from sugarcane, which is grown in Bangladesh in plenty, and milk comes from cows and buffaloes, which are also grazed in Bangladesh in large numbers. Moreover the ingredients used to produce ice creams are environmental friendly. Abul Khair Group can work one step ahead by adopting the concept of

22

green marketing using disposable cups and containers for marketing ice cream. In this view, the natural environment supports the new portfolio.

Technological Environment – Bangladesh is less developed in terms of technology, and the production of ice cream requires very high technology. Furthermore most of the technology required to produce ice cream needs to be imported either from Europe or Australia. But once established there will not be any soaring costs in the development of the technology as the technology in this field is much steady. The company’s current UHT plant, built for its milk products section, can deal with some of the steps in producing ice cream. So it would be better to build up the ice cream manufacturing plant close to the UHT plant. The company needs to make an effort in order to overcome the unfavorable situation of technological environment.

Political Environment – There are not many laws restricting the ice cream industry. The only law is maintaining the BSTI standards, which will not be very tough to maintain. Instead, “Sub-Frost” is determined to maintain international standards. Thus the environment is favorable.

Cultural Environment – The people of Bangladesh love sweet food products and milk products. Many of the cultural events require milk products and sweets. Ice cream is a milk product and also tastes sweet. Also there isn’t any ingredient in ice cream which goes against our culture. So promoting the product in a cultural view will boost the markets for it, which ensures a very positive environment for ice cream.

Assumptions

The company has a very strong supply chain management. The suppliers both home and abroad are reliable and efficient, which is a benefit for the company.

About 72% population of Bangladesh fall between the age of 3-35 and they are the consumers of 92% of the total ice cream industry.

To stop the competitors from competing directly the company must collect the certificate of solitary production and distribution of premium ice creams for at least a year from the government with the help of its existing strong liaisons.

Abul Khair Group has managed to keep a friendly and co-operative relationship with its competitors in the current businesses, which is a must in today’s world of business.

The people of all age groups are consumers of ice cream, but generally the people between the age of 5 and 35 consume 94% of the total ice cream of Bangladesh. About 72% of the total population falls between this age group.

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Many people, who are now between the age of 30 and 35, will consume ice cream even after they cross 35 and many infants will grow old enough to have ice cream.

Furthermore most of the technology required to produce ice cream needs to be imported either from Europe or Australia.

References

Kotler, P. and Armstrong, Gary (2006) Principles of Marketing (11th Edition), Prentice Hall India.

http://www.abulkhairgroup.com 01/02/2006, 17/02/2006 and 23/02/2006.

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Final Report

Documents

new brand

new product details

company objectives goals

strong company objectives

certain company strategies

new productsubmitted

p product

new plan