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Evaluation of Entry into Ice cream Business - BRAC University ...

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various festivals and programmes provide scope for higher volume <strong>of</strong> ice <strong>cream</strong> sales. According to<br />

companies where only 10-15% sales occurs in the winter season, same amount <strong>of</strong> sales occurs<br />

during festivals like the two Eids and Nobobarsha.<br />

G. Distribution/ Servicing System:<br />

Mainly common format ice-<strong>cream</strong> is distributed in two methods that are directly to retail shops and<br />

through hawkers with ice <strong>cream</strong> carts/ trolleys.<br />

The various channels <strong>of</strong> retail shops other than cart that serve as distribution outlets for <strong>Ice</strong> <strong>cream</strong><br />

are:<br />

7. Urban General Stores (UGS)<br />

8. Urban Neighbourhood Grocer (UNG)<br />

9. Premium General Store (PGS)/ SMMT<br />

10. Confectionary/ Bakery<br />

11. Modern Trade (MT)<br />

12. Fast Food shops (Recently some fast food shops keep branded ice <strong>cream</strong> cabinets)<br />

Distribution details <strong>of</strong> all the companies are provided below. However, detail <strong>of</strong> Milk Vita is not<br />

available as they are mainly milk producer and they have no dedicated ice <strong>cream</strong> cabinet for retail<br />

stores and currently they are not distributing ice <strong>cream</strong> in Dhaka city.<br />

Company<br />

Distribution<br />

Method Frequency<br />

No. <strong>of</strong><br />

Cabinets<br />

No. <strong>of</strong><br />

Carts<br />

Igloo Distributor/ Cart 2 to 3 times a week 4000 100<br />

Kwality Distributor/ Cart 1 to 2 times a week 1050 20<br />

Polar Distributor/ Cart 1 to 2 times a week 800 50<br />

Savoy Company 1 to 2 times a fortnight 176 -<br />

Milk-Vita - - - -<br />

Table 13: Distribution Method <strong>of</strong> Market Players<br />

Distribution Process: Distribution process through both methods is described below.<br />

Retail Distribution: The general distribution that is followed by companies is that distributor sends<br />

large refrigerated trucks dedicated to specific territories. These trucks are accompanied by small<br />

refrigerated vans. Main road side shops are served directly from the large truck and shops that are<br />

inside small streets are served by the small vans.<br />

Order and delivery are done on the same day. The strategy followed is that <strong>of</strong> replenishment. If the<br />

branded freezer <strong>of</strong> the company is empty, they simply fill it up according to requirement <strong>of</strong> different<br />

SKUs as the delivery people see fit. However, shopkeepers have to buy full cartons (usually 24 pieces<br />

in a carton) <strong>of</strong> single serve ice <strong>cream</strong>; they cannot buy in pieces.<br />

<strong>Evaluation</strong> <strong>of</strong> <strong>Entry</strong> <strong>into</strong> <strong>Ice</strong> <strong>cream</strong> <strong>Business</strong> for Bangladesh Limited 24

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