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

segment can be estimated to be approx. 20-22% (higher than the common format segment).
Following are the basic detail of all the major players in the segment with their estimated sales 3 .
A. Detail of Operation:
Players Outlet #
Sales
(Cr Taka) Share
Club Gelato 1 1.36 19.9%
MövenPick 1 1.19 17.4%
Andersen’s 3 1.19 17.4%
Gelateria Igloo 3 1.19 17.4%
Sub Zero (Kwality) 2 0.51 7.5%
Baskin Robbins 1 0.15 2.2%
Dolce Vita 1 0.17 2.5%
American Soft 1 0.09 1.2%
Rainbow 1 0.09 1.2%
Others (off site) 0.89 13.0%
Total Market 6.82
Table 22: Players and Shares in Boutique Segment
General operational procedure followed by all the operators is as follows:
� Operating method: There is a variation in operational method among the large operators.
� Club Gelato uses kitchen at own premise where imported ingredients and local milk (daily
special service from Milk Vita) are used to make ice cream.
� MövenPick directly imports ice cream from Switzerland.
� Andersen’s, Gelateria Igloo and Sub Zero produce ice cream at their factory with a mix of
imported and local ingredients.
� Products: Around 30-35 flavours of artisan dairy ice cream are served at the premises.
� Most sold flavours are Vanilla, Ferrero Rocher, Butterscotch, Chocolate, Caramel etc
� Other Products: Larger players also serve ice cream desserts (milk shakes, ice cappuccino etc),
pastries and other desserts with normal coffee and tea facility at their premises.
� Boutiques fight ice cream seasonality with the other products sales during off-peak ice cream
seasons. Usually ice cream and other products contribute at 60:40 ratio in summer and during
winter and off-peak seasons the ratio reverses.
� Pricing: Usually the prices of products in this segment are 3-4 times higher than that of the
common format segment.
� Prices do not vary with flavours. Variation depends on serve style (Cone/ tub) and use of
toppings and other ingredients (Chocolate sauce/ nut/ fruits) etc.
� Usual margin charged is around 50-60% over production cost. Similar margin is charged for
other products like coffee, ice cappuccino etc.
3 Yearly sales is estimated based on company’s approximate daily sales collected during interview
Evaluation of Entry into Ice cream Business for Bangladesh Limited 36