This document provides an overview of the ice cream industry in Bangladesh. It discusses the history and current state of the industry, describing how Igloo became the early market leader after being privatized in the 1980s. The industry is worth around 6.5 billion Taka annually, with the major players being Igloo, Polar, and Kwality, which together hold 70% of the market. The industry faces challenges from high ingredient costs due to import dependence and large capital requirements for manufacturing facilities. However, the industry remains in growth as consumer demand increases, particularly among the expanding middle class population.
This document provides an overview of the ice cream industry in Bangladesh. It discusses the history and current state of the industry, describing how Igloo became the early market leader after being privatized in the 1980s. The industry is worth around 6.5 billion Taka annually, with the major players being Igloo, Polar, and Kwality, which together hold 70% of the market. The industry faces challenges from high ingredient costs due to import dependence and large capital requirements for manufacturing facilities. However, the industry remains in growth as consumer demand increases, particularly among the expanding middle class population.
This document provides an overview of the ice cream industry in Bangladesh. It discusses the history and current state of the industry, describing how Igloo became the early market leader after being privatized in the 1980s. The industry is worth around 6.5 billion Taka annually, with the major players being Igloo, Polar, and Kwality, which together hold 70% of the market. The industry faces challenges from high ingredient costs due to import dependence and large capital requirements for manufacturing facilities. However, the industry remains in growth as consumer demand increases, particularly among the expanding middle class population.
Prepared For: Dr. M. Nazmul Amin Majumdar Prepared by: Mohammed Fahad Student ID: 12164007
MBA Program, School of Business BRAC University Date: 13 July14
Introduction: History and Current position: The first branded ice cream, Igloo, was introduced in 1964 in the national region, which was later nationalized right after the liberation of Bangladesh. Later during the early 80s it was acquired by Abdul Monem Ltd. This is when Polar entered the market creating the first rivalry. After 10 years since privatization, Igloo got to be the market leader after conducting heavy promotional campaigns. Since then it has retained its position among all major domestic and foreign brands in the market. Description of the industry: Market structure: National ice cream market is worth around TK 6.5 billion, of which 85% constitutes the branded ice cream makers and the rest of the 15% are the non-branded producers. Major players in the market: The major players in the industry that make up the 70% of the total market are: Igloo / Mi Amore Abdul Monem Ltd. Polar Dhaka Ice Cream Ltd. Kwality Kwality Food Products Ltd.
Recently the market witnessed the emergence of a new brand in the market Bellissimo, under Kazi Foods Ltd. The brand is targeted towards the upper middle class population in the city. Other brands serving the outskirt areas around the city are: Milk Vita Bangladesh Milk Producers Cooperation Union Ltd. Savoy Sena Kalyan Shangstha
These two brands are in same strategic group selling competitive-priced brand ice cream - aiming to raising revenue for a cooperative fund. 15% of the total current market is occupied by the non-brand ice cream makers operating in the suburb and rural regions. Apart from domestic ice cream makers there are other foreign brands in market like - Andersons, Monvenpick, Buskin-Robbins, and Haagen-dazs. Products and services: All these manufacturers either sell ice creams in ice cream parlors or takeaway single or family packs through traditional distribution channels. Consumer segments: There are two main consumer segments: 1. Middle and upper middle class craving for branded and premium branded ice creams. 2. Working class who are satisfied with the lower priced non-brand ice creams.
Major Challenges and Future Outlook: One of the challenges is coping with the bargaining power of the suppliers. Since most of the ingredients of ice cream are imported from abroad it has a strong impact in pricing the end product. The biggest challenge in the industry is the Entry Barriers in the branded segment. It requires a huge investment for machineries and technologies necessary for the complex process of ice cream manufacturing. Moreover the infrastructure is also not strong enough in the distribution channel. Conclusion: The ice cream industry is still at growing stage. Only with proper investment and strategy the industry can be quite attractive for a business.
References: Parvez, Sohel. "Brand war heats up in ice cream market." The Daily Star. The Daily Star, 17 Apr. 2013. Web. 12 July 2014. <http://archive.thedailystar.net/beta2/news/brand-war-heats-up-in- ice-cream-market/>. Miah, Robin. "Evaluation of entry ice cream business for Unilever Bangladesh ltd." BRAC University Institutional Repository, 2 Sept. 2013. Web. 12 July 2014. <http://dspace.bracu.ac.bd/bitstream/handle/10361/795/06204032.pdf?sequence=14>. "Assignment Point - Solution for Best Assignment Paper." Report on Ice Cream Companies of Bangladesh. AssignmentPoint.com, n.d. Web. 12 July 2014. <http://www.assignmentpoint.com/business/marketing-business/report-on-ice-cream- companies-of-bangladesh.html>.
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