Evaluation of Entry into Ice cream Business - BRAC University ...
Evaluation of Entry into Ice cream Business - BRAC University ...
Evaluation of Entry into Ice cream Business - BRAC University ...
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Stick<br />
Cup<br />
&<br />
Sundae<br />
Normal Cup Sundae Premium Cup<br />
Price Tk.12 Tk.20 Tk.25<br />
Cone<br />
Normal Premium<br />
Price Tk.20 Tk.25<br />
Container<br />
Normal <strong>Ice</strong> Fruit Normal Cream 3D Mould Premium Extrusion<br />
Price Tk.10 Tk.15 Tk.15 Tk.20<br />
Normal Premium<br />
Price/Ltr. Tk.100 Tk.175<br />
Innovative<br />
Fillers<br />
Normal Premium<br />
Price Tk.20 Tk.25<br />
Family<br />
Packs<br />
Kulfi Cake Mixed Pack<br />
Price/Ltr. Tk.150 Tk 175 Tk 190<br />
Figure 8: Serve Types and Pricing<br />
Single<br />
Serving<br />
Multiple<br />
Serving<br />
As it can be seen from the above chart, all impulse ice <strong>cream</strong>s are priced within the range <strong>of</strong> BDT 10<br />
to 25. Other take home multiple servings are priced within the range <strong>of</strong> BDT 50 (0.5 Litres) to BDT<br />
220 (2 Litres). Another noticeable factor in price is that there are both normal and premium flavours in<br />
all types <strong>of</strong> ice <strong>cream</strong>s.<br />
K. Firms as Price Setters:<br />
The firms have capability to affect the market price to be low as pr<strong>of</strong>it margin is very high. If Igloo<br />
reduces the price <strong>of</strong> an item below the prevailing price level in order to increase its sales, its<br />
competitors will fear that their customers will go away from them to buy Igloo products. To retain their<br />
customers they will be forced to match the price cut <strong>of</strong> Igloo. Historically this has been proven to be<br />
true. However, due to price sensitivity, companies cannot drastically increase price even if they<br />
provide higher quality <strong>of</strong> product. It was seen in 1997 when Igloo increased price <strong>of</strong> 11 SKUs and<br />
faced drastic sales fall during that time. It shows that the industry might welcome overall industry price<br />
increase but not individual company price increase.<br />
L. Promotion:<br />
The promotion scenario in the industry is not quite organized as <strong>of</strong> now. Even proper data regarding<br />
promotional expenditure is not available from research sources. The reason being, there is not much<br />
consumer related activity seen in the market. After Kwality’s introduction in the market in 1999, Igloo<br />
went on with massive Television promotion <strong>of</strong> their new products that were available at that time.<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 28
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