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

7.0 INDUSTRY ATTRACTIVENESS AND ENTRY PROSPECTS
7.1 Driving Forces of Growth
As identified in the earlier sections, there are several driving forces behind the growth of ice-cream
industry in Bangladesh.
7.1.2 Trade and Infrastructural Level:
� As a result of globalization newer varieties have been introduced to the local products. Many
foreign companies are also coming as franchise so there has been increased competition and
these boutiques are setting higher standards for the local producers.
� The present market growth rate is 18-19% which is being influenced by larger players like Igloo
who are expanding their distribution nation wide with expansion of national electricity grid.
� With entry of Modern Trade and recent organized business approach of retailers has made it
possible for ice cream manufacturers to penetrate into shops even without providing them with
branded freezers.
� Weather change has increased “summer” season in our country, which has reduced negative
seasonal impact on ice cream.
� Large companies like Igloo have taken global learning of using carts as an effective tool of
availability and visibility for ice cream.
� New and improved technologies are being used in the production process. This technological
advancement has improved quality, increased speed of production and made the process more
cost effective.
7.1.3 Consumer Level:
� Only a few years back rich people could afford the luxury of having ice-cream but now it has
become a common product for everybody. Ice-cream companies are producing different products
with a wide price range for consumers of every class and status.
� Nowadays companies are doing promotional campaigns more frequently; the customers get to
know about the product which makes it easier for them to buy the best one.
� The improved standard of life and more modernized lifestyle of people is an important reason for
the increased consumption thus growth of the ice-cream industry.
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