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

successfully removed Polar from the second place with a current market share of 27%. The company
also operates in the boutique segment with two parlours in Dhaka and Chittagong.
Kwality ice cream factory is situated in Chittagong with a floor space of 35,000 sft and fully automated
machinery/ wrapping/ mix machinery equipments from Italy having capacity of around 20,000 litres of
ice cream per shift. The ice cream factory employs 140 people. The company is ISO 9001-2000
certified.
Kwality was the first true competitor for Igloo products with some major innovation in product design
and communication but their quality is perceived to be lower in the minds of the consumers and they
do not have extrusion ice cream. The product prices are also similar to that of Igloo but they charge a
bit lower than Igloo in premium multiple servings. However, during market visits it was seen that
shops that keep only Kwality or Igloo and Kwality both, they can sell Kwality too although the sales
amount is lower than that of Igloo. People who look for Igloo, shopkeepers give them that directly but
if they get a chance and Kwality ice cream stock is high, they also push Kwality to dry the stock out.
This gives an indication that market is larger than what the current players are capable of serving
even in Dhaka.
Kwality follows a similar distribution model like Igloo but distribution frequency is lower and amount of
cart sellers is limited to 25 and they operate only in Dhaka.
Polar:
Once a giant in the industry, Dhaka Ice Cream Industries Ltd. introduced the first hygienically packed
ice cream in Bangladesh in 1987 and the brand name "Polar" was thus born. In the early days, the
company started ice cream business with a wide range of products and a variety of flavours in Dhaka
city. In 1988, the company started its distribution in the city of Chittagong, then Bogra, and continued
to cover more cities. Presently, Polar ice cream is available throughout Bangladesh. The company
today trails in the market with 15% market share in the common format segment. Recently, Polar has
announced launch of ISIS diabetic ice cream with support from DANONE to turn around in the market.
The company has its head office, as well as a modern, large-scale industrial plant in Dhaka. Polar ice
cream is made with Danish expertise, using Danish equipment and technology. The production
activities and quality control measures are supervised and managed by Danish experts. Polar offers a
wide range of delicious flavours and tastes made by ingredients imported from Europe.
Dhaka Ice Cream at present has 3 cold stores in Dhaka, Chittagong and Bogra, in Bangladesh. From
Dhaka cold store, they distribute ice creams in Mymensingh, Tangail, Jamalpur, Sherpur, Kishoreganj,
Netrakona, Comilla, Narsingdi, Barisal, Madaripur, Agaeljhara, Faridpur, Magura, Chuadanga,
Jessore, Satkhira, Khulna, Pirojpur and Sylhet through their distributors. In case of long distance
delivery points, the company uses auto cooling freezer van.
Evaluation of Entry into Ice cream Business for Bangladesh Limited 33