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

In Dhaka city, they distribute ice creams directly to retail stores in freezer vans. Besides that, they
have several distributors at different points of the city. Distributors cover their individual areas where
company is not able to supply directly in their freezer vans. Similar model is followed by the company
to distribute ice cream from their other cold storages through out the country. For storing and selling
ice creams in retail stores, the company like the other players arranges a deep freezer with the Polar
logo and canopy light box.
In addition to this distribution, the company also undertakes home delivery of ice creams for special
occasions.
Savoy:
Savoy Ice-cream brand is owned by Sena Kalyan Sangstha (SKS) Group of industries. It started its
journey in March 1995 with a factory in Tejgaon, Dhaka. Yearly turnover is estimated at BDT 3.88
crores with a market share of roughly 3.5%.
The factory has been established with Sonali Bank finance at 60:40 equity ratio. The total production
capacity of the factory has been estimated at 2400 litres of Ice-cream per day. Total land area of the
factory premise is 1.16 Bigha with 8,000 sft area covered with a total project cost of BDT 1.44. The
factory employs 73 people.
Product ranges of the company include all the basic designs and flavours of the industry. However,
the company has not been much of an innovator in the industry. Their product quality is substantially
low than that of other players and they price their products at 10-15% lower than the other
competitors. The company imports raw materials mainly from Europe. The general raw materials are
Euro cream, Skimmed Milk Powder, Cocoa Powder and Flavour (Vanilla, Mango and Strawberry),
Colour (Yellow, Red, Chocolate and Green), Ripple Sauce, Cheney Fruit, Palm Kernel Oil,
Anhydrous, Butter Oil (Ghee) and Sugar etc.
Milk Vita:
Milk Vita is one of the most famous brand names in Bangladesh for its liquid dairy milk. Owned by
Bangladesh Milk Producers’ Co-operative Union Limited (BMPCUL), the company came in the market
with proper dairy milk ice cream in form of cups and choc-bar. With a production capacity of around
1600 litres per day, the company is trailing in the market place with 3% market share.
Although the Milk Vita Choc-bar was perceived to be extremely tasty by consumers, they probably
could not do well due price competition. Currently they do not even distribute ice cream in Dhaka.
However, their presence is seen in outskirts of Dhaka and other nearby towns.
If the current market situation prevails, Milk Vita would lose their remaining market share and other
companies would benefit, especially Igloo. However, one of the advantages of Milk Vita remains to be
Evaluation of Entry into Ice cream Business for Bangladesh Limited 34