COOL CREAM CASE STUDY

Soomesh Sharma grew up in a robust north Indian family where taking medicines for petty
problems was frowned upon. Elders in the family believed that minor ailments could be cured
by appropriate precaution and diet control. Soomesh particularly remembered how he was
chided for wanting to eat ice-cream when his throat was sore. He was not only denied his
favorite ice-cream, but was also administered liberal doses of ginger juice.

Soomesh majored in commerce in college and rounded-off his studies with an MBA in
marketing from the USA. He returned to India and bought out Cool Cream Pvt. Ltd., a
company recognized as the manufacturer of finest ice-creams throughout the country.

Soomesh was visiting his elder sister who stayed in another town when his throat got infected.
Out of old habit, he gave-up ice-cream and asked his sister for some ginger juice. His sister,
out of sympathy for her brother, mixed some ginger juice in a bowl of ice cream and Soomesh
ate the innovative product with great delight.

The entrepreneur in Soomesh told him that his sister had an excellent marketable product.
Shortly after returning to his company, Soomesh instructed the R & D centre at Cool Cream to
develop a ginger ice-cream. The product so developed was named Adrak Ice-cream and was
tested in the market. The concept of an ice- cream containing ginger, which would protect the
throats of those who relished ice-creams, was seen to have been well received.

Soomesh, thereafter, called a conference of various department heads to work out a pricing
strategy for Adrak Ice Cream. The manager for finance wanted the price to be cost of the
product plus a 100 percent profit. The R & D chief supported him. He emphasized that the
product would be copied in no time and cool cream would lose all the advantages and
investments for developing the idea. The sales team advocated a low price to introduce the
product so that it would be accepted in the market.

The manufacturing manager was not willing to compromise on quality to cut the price/cost.
He insisted that Cool Cream must maintain its fair name at all costs. The purchase manager
pointed out to the difficulties of buying and keeping stocks of an agricultural product like
ginger. He added that this would add to the costs.

You were invited to this brainstorming session as a consultant and are required to recommend
a pricing strategy to Soomesh Sharma, the owner of Cool Cream Pvt. Ltd.

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Questions -

Q 1. Analyze the case and give appropriate solution.

Q 2. Do you think the idea of introducing 'Ice-cream with Ginger flavor' will capture the
market and sales will increase? Why? or why not?

Consider the below-

1. Executive Summary - Explain what you will examine in the case study. Write an overview
of the case. Make a note or statement and sum up the results of your observation in a
maximum of 2 sentences.

2. Background - Provide background information and the most relevant facts. Isolate the
issues. (Problems/issues not the symptoms)

3. Case Evaluation - Isolate the sections of the study you want to focus on. In it, explain why
something is working or is not working.

4. SWOT/C Analysis.

5. Proposed Solutions - Offer realistic ways to solve what isn't working or how to improve its
current condition.

6. Conclusion - Summarize the main points from the case evaluations and proposed
solutions.

7. Recommendations - Talk about the strategy that you should choose. Explain why this
choice is the most appropriate.

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SOLUTION;

I. Executive Summary;
Soomesh Sharma grew up in a robust north Indian family where taking medicines for simple
problems was frowned upon. Elders in the family believed that minor ailments could be cured
by appropriate precaution and diet control. He was chided for wanting to eat ice cream when
his throat was sore. He was administered liberal doses of ginger juice. Soomesh was
commerce graduate with MBA in marketing from USA. After returning to India he bought cool
cream pvt ltd a company recognized as manufacturer of finest ice creams throughout the
country. One day his sister mixed ginger juice in ice cream. He was delighted by the flavored
then he came back to company and he instructed the R&D centre at cool cream to develop
ginger ice cream named as Adrak ice cream. Soomesh called conference of various
department heads to workout a pricing strategy for Adrak icecream.

II. Report Main Body;

A. Situational Analysis.

Soomesh was commerce graduate with MBA in marketing from USA. After returning to India
he bought cool cream pvt ltd a company recognized as manufacturer of finest ice creams
throughout the country. One day his sister mixed ginger juice in ice cream. He was delighted
by the flavor of the ice cream then he came back to company and he instructed the R&D
centre at cool cream to develop ginger ice cream named as Adrak ice cream. Soomesh called
conference of various department heads to workout a pricing strategy for Adrak ice-cream. As
per finance manager the price of the product must include cost plus 100 percent profit and
R&D chief also supported him. He emphasized that the product would be copied in no time
and cool cream would lose all the advantages and investments for developing the idea. The
sales team advocates a low price to introduce the product so that it would be accepted in the
market. The manufacturing manager was not willing to compromise on quality to cut the
price/cost. He insisted that cool cream must maintain its fair name at all costs. The purchase
manager pointed out to the difficulties of buying and keeping stocks of an agricultural product
like ginger. He added that this would add to the cost.

B. Statement of the problem.

Soomesh has decided to introduce the ginger flavored ice cream at cool cream, but he is facing
a pricing strategy problem and the other competitors may copy the product and sell the
product and low cost and may capture the market. Soomesh called conference of various
department heads to workout a pricing strategy for Adrak ice-cream. As per finance manager
the price of the product must include cost plus 100 percent profit and R&D chief also
supported him. He emphasized that the product would be copied in no time and cool cream
would lose all the advantages and investments for developing the idea. The sales team
advocates a low price to introduce the product so that it would be accepted in the market. The

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manufacturing manager was not willing to compromise on quality to cut the price/cost. He
insisted that cool cream must maintain its fair name at all costs. The purchase manager
pointed out to the difficulties of buying and keeping stocks of an agricultural product like
ginger. He added that this would add to the cost.

Here, each departmental head is suggesting different views as per their opinion
and related to their department. So it is very difficult to consider the entire related factor and
then decide pricing strategy.

C. List of critical factors/facts.

 Soomesh - Entrepreneur of Cool Cream.

 Soomesh had decided to introduce new product to the market know as Adrak ice cream
and facing pricing strategy problem for the new product.
 There are chances of other competitors may copy the product and may sell at the low
cost to capture the market.
 Each departments of the company are providing their views as per their departments.
 Soomesh is facing difficulty to consider the entire related factors and then decide the
pricing strategy.

D. Assumptions.

This is the new and innovative product, it has to be introduced with low price to capture the
attention of the market and when sales increases they have increase the price and again
decrease the price when sales decline. Where the quality of the product must be good and at
the beginning stages the price of the product must be high to make customers believe that
Adrak ice cream is a high quality product developed after lot of research. Customer awareness
should be done by having advertisements and promotion. If the builds curiosity in the
customers minds, the customers will approach to buy the product.

E. SWOT Analysis.

Strengths;

 Providing good and high quality product.

 Profit moto – price of the product must include cost of the product plus 100% profit.

Weakness;

 High price at the initial stage may not be accepted by the customers.
 Adrak flavored ice cream may not be liked by everyone.

Opportunities;

 As it’s an innovative and new product, which was not introduced earlier by any of the
other companies, can capture the market.


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Threats/Challenges;

 As it’s a new product, the competitors may copy and sell the product at low cost and
capture the market.


F. Solutions for the questions in the case study;
Q1. Analyze the case and give appropriate solution.

Solution; Soomesh has decided to introduce the ginger flavored ice cream at cool cream, but
he is facing a pricing strategy problem and the other competitors may copy the product and
sell the product and low cost and may capture the market. Soomesh called conference of
various department heads to workout a pricing strategy for Adrak ice-cream. As per finance
manager the price of the product must include cost plus 100 percent profit and R&D chief also
supported him. He emphasized that the product would be copied in no time and cool cream
would lose all the advantages and investments for developing the idea. The sales team
advocates a low price to introduce the product so that it would be accepted in the market. The
manufacturing manager was not willing to compromise on quality to cut the price/cost. He
insisted that cool cream must maintain its fair name at all costs. The purchase manager
pointed out to the difficulties of buying and keeping stocks of an agricultural product like
ginger. He added that this would add to the cost. Here, each departmental head is suggesting
different views as per their opinion and related to their department. So it is very difficult to
consider the entire related factor and then decide pricing strategy.

This is the new and innovative product, it has to be introduced with low price to
capture the attention of the market and when sales increases they have increase the price and
again decrease the price when sales decline. Where the quality of the product must be good
and at the beginning stages the price of the product must be high to make customers believe
that Adrak ice cream is a high quality product developed after lot of research. Customer
awareness should be done by having advertisements and promotion. If the builds curiosity in
the customers minds, the customers will approach to buy the product.

Q2. Do you think the idea of introducing “Ice cream with ginger flavor” will capture the market
and sales will increase? Why? Or Why not?

Solution; As per my opinion, “Ice cream with ginger flavor” is a very good and innovative
product. As it contains ginger, it contains so much of medicinal value in it. Moreover, the
ginger flavor is liked by so many elders, children’s and teenagers too. At this pandemic year,
people are suffering from throat infections, as ginger is the most advised and suggested
product for throat infections by doctors. By consuming ice creams most of the children’s as
well as elders will be affected by cold quickly and will be affected by throat sore. Instead, if the
ginger is mixed with ice cream, they will overcome infections. As it is experimented by the
Soomesh who is an entrepreneur of Cool cream. As mixing of ginger in all the products as

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become popular nowdays. Similarly, even gingered flavored ice cream will have a good
market.

G. conclusion;

Today, customers’ expectations are increasing day by day. They are becoming more specific
and conscious about the quality and taste of the product. So, a marketer has the actual
expectations of the customers. To study them, it is necessary to provide these types of
innovative products as well as healthy product.

So, I think introducing this product to the market will have a popular and would have
higher sales. As this is a innovative and healthy product.

H. References.

III. Appendices.