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MKT460
Prepared by:
Azas Shahrier
Sourav Raatul
Ashadul Haque Sunny
Roksana Binta Hashim
Farha Eusuf
Nazifa Tasnim Hasib
Saiful Sakib Sarkar
Prepared for:
Rafsan Elahi
Lecturer, School of Business
North South University Dhaka,
Bangladesh
Report on Bellissimo
This project is prepared to revitalize Bellissimo ice-cream.
1
Abstract
Ice cream industry of Bangladesh is estimated to have a size of BDT 220 Crore where BDT 131
Crore belongs to branded segment (BDT 121 Crore Common Format Ice cream that is distributed
through retail and BDT 9.8 Crore in the boutique segment) and BDT 79 Crore is in the unbranded
low quality-low price segment. The industry is currently growing at a rate of 19%.
Branded common format is dominated by Igloo with more than 51% share with followers like
Kwality and Polar where Milk Vita and Savoy are minnows. Boutique segment is competed by
Club Gelato (20% share), MövenPick, Andrsen’s (3 outlets) and Gelateria Igloo (3 outlets). These
three have around 17% share.
The market is characterized by low competitive rivalry where Dhaka still contributes to more than
61% of total country’s sales. This is due to issues regarding electricity and requirement of cold
distribution chain by the industry. There are still huge untapped areas of the country. However, the
industry is extremely capital intensive and there are lots of entry barriers. Only manufacturers with
large capital can invest and thus there has been no big player in the common format segment since
Kwlaity (1999).
Products or of quite high quality in the Bangladeshi market but price is still out of reach of rural
and lower SEC people who belong to low disposable monthly income group. Distribution is mainly
done through refrigerated trucks alongside use of carts in the country. Boutique format players
serve at their premises, ice cream and other dessert items to offset seasonality of ice cream sales.
Promotion in the common format is mainly in newspapers and billboards along with trade based
consumer promotions and trader schemes.
Consumers of ice cream are mainly Urban kids in the age group of 5-14 who mainly consume
normal sticks, cups, cones innovative fillers and water ice creams; there is urban youth in the age
group of 15-24 who consume premium and extrusion sticks and cones and urban mothers in the
age group of 25-35 who are the decision makers for kids and family ice cream purchases. The
consumers can be segmented based on their desired satisfactions from ice cream occasion,
portrayed personality traits of ice cream bands and the occasions when they consume ice cream.
2
Analysis shows there is scope for market development and penetration in the country. There is
also scope for ice creams that are health conscious and nutritional in the industry.
Looking at the scenario, Bellissimo premium Italian ice-cream distributed by Kazi Farms Group
to enter the industry in a grand way along with boutique segment with Café Bellissimo to give
customers the essence of premium brand and flavor. But they have not been so good enough to
expand their business due to their lack of Marketing policies as well as Promotional skills.
Therefore, we prepared this report to revitalize the brand to serve its actual purpose by changing
the branding strategy, communication campaign, media details and budgeting, pricing
adjustments, future business expansion plan. We have also come up with Recommendations to
help them achieve their estimated target and goals.
Thus, Bellissimo can benefit from entering in this industry if they enter in a grand way. Obviously
company has to balance the investment issues for the industry and also acquire necessary resource
for ice cream as traditionally Kazi Farms is a group of companies. If they can address these issues
tactfully they can do well leveraging their existing brand image.
3
Situation Analysis
Bellissimo is gradually expanding distribution
of its ice cream brand. There is a demand in the
premium segment of the market. Premium ice
creams account for nearly 15-20 percent of the
Tk 550 crore market of branded ones.
Basically the quality is matter in the ice cream
industry, not price. In the long run process the
firm will deliver quality products to sustain in
the competition.
Competitive rivalry is moderate within the
industry Bellissimo operates in as there are few competitors present in the industry.
Bargaining power of buyers is low because there are few options available for them.
The threat of substitutes is high because the switching cost is high.
Suppliers have high bargaining power.
The threat of new entrants is low because the legal requirements are strict. The entry barriers are
overall high so people are not coming easily in these ice cream industries.
Market Segmentation
Markets consist of buyers, and buyers differ in one or more ways. Through market segmentation,
companies divide large, heterogeneous markets into smaller segments.
Segmenting consumer markets: Bellissimo ice cream specializes on kids and families. We divided
the consumer market into 3 segments. They are Geographic, Demographic and psychographic.
From the viewpoint of an ice cream manufacturing company, demographic segmentation holds
importance in terms of its close relation to customer product needs and purchasing behavior and
Competitive Rivalry
(High)
Threat of New
Entrants (HIGH)
Bargaining Power of
Buyers (HIGH)
Threat of Substitutes (Moderate)
Bargaining Power of Suppliers
(Moderate)
4
the ready measurability of variables such as consumers’ age and life cycle and their income. As
it’s a premium brand and we claim to be the healthiest Ice Cream brand in the country, we targeted
all age group of people above the age of 4. In our opinion the social class also plays an important
role in having Bellissimo. Being a Premium brand it has some limitations like not being able to
reach the lower class mass market, which is the biggest market in our country. Hence it is a brand
of Middle class people and the consumers who exist in the upper class.
Geographically it is already available in the biggest and busiest cities like Dhaka, Chittagong etc,
but in the near future we plan to distribute our product in such a manner so that bellissimo can be
available all over the Bangladesh.
Markets can be segmented into groups of nonusers, ex-users, potential users, first time users, and
regular users of a product. We could imagine that Bellissimo is very interested in the potential
users which bring in most of the money.
Psychographically a market can also be segmented by consumer loyalty.
Information about consumer loyalty can be a very important and helpful to use for the right steps
to attract the right customers. Bellissimo also cares about the customer who are always searching
for product variation, new products and flavors, as we are constantly coming up with new product
and categories
Competitors
One of the most important forces that always keep an organization on guard is its competitors.
Competitors are organizations that produce similar goods. In the context of Bellissimo, Bloop,
Za’N Zee and others can be held as competitors. In terms of their parlors Move-n-pick, Baskin
Robbins, Club Geleto, Cream and Fudge, Mi Amore etc are their competitors. But surprisingly,
the marketing management of Bellissimo views these local brands as mere participants in the same
industry rather than as competitors.
5
SWOT ANALYSIS
Strength:
* Able to achieve brand awareness among the target consumers by coordinating promotional tools
with in a very short time
* They invested heavily in their product which in compared to their competitors did not do.(they
contain 10% milk fat)
* They are advertising the fact that they have a premium ice cream and they have advertised their
product extensively in compared to others.
* Brand conscious, attractive packaging and interesting TVC.
Weakness:
* The ice cream due to high content of ingredient is priced a bit high in compared to the regular
ice cream that does not go well with the general consumers perception they will go for a ice cream
priced below then Bellissimo rather than consume a Bellissimo.
* They are not specialized in producing ice cream like its competitors who have a lot of experience
employs to help them with the decision making and they have the knowledge and experience to
tackle any situation.
* They may suffer from geographical coverage as geographically not that much places are selected.
* Low product variety Bellissimo does not have a diversified number of products in compared to
its competitors
6
Opportunity:
* Demand of ice-cream is growing in Bangladesh
* The market is increasing at 15% per year.
* Their target consumers have the highest percentage of disposable income
* Increased demand of fast food shops in the city which increases their sales
* The café that Bellisimo is opening they can give their consumers customized ice-cream like
which flavors they prefer they can also add extra add-ons like snikers and kitkat with their
preference.
Threats:
* Too many competitors in the market very hard to compete in a market dominated by establish
brands like Gelato, Baskin Robins, Movenpick, New Zealand Naturals.
Communication Campaign
Sales Promotions:
Sweepstakes: Inside the Bellissimo cafe Banani we have panned to design a wall with some ice
cream pictures and the guest will have to take a selfie infront of that wall and post it in his/her
facebook profile with his/her experience in the cafe, the ballissimo should be tagged in the post.
Three person will be chosen randomly every month and the winners will have a chance to have
unlimited ice creams for a hour.
7
Membership cards: Customers who’s bills will be more then 1500tk will get a free membership
card, from his/her second visit they will gain 10 points for each of their 100tk’s purchase.
Whenever they will have 100 points collected, they will get two scoops of ice cream free.
Discount: There will be a 10% discount for purchase through City Amex & Standard Chartered
Credit cards.
Direct Marketing:
For direct marketing we have planned to send SMS and Emails to customers. We will be sending
details about our few products & about our discount. We will be sending more Sms & Email during
holidays because at during holidays people visit cafes more and when they will get our SMS &
Emails, they will get a reminder about our brand and their will more chance that they will visit our
café.
Branding Strategies for Bellissimo
Brand Essence: Keeping in mind that Bellissimo is a premium ice cream brand in Bangladesh,
the brand essence for Bellissimo is “Experience of Unique taste (best ingredients, quality, cold)”
because we are not only offering an ice cream brand but also offering a great chilly experience to
our customers.
Brand Personality: Our brand personality for Bellissimo is “Bringing Pleasure and Authenticity
(extraordinary, attentiveness, new sensation) because as a premium ice cream brand, we are going
to provide extraordinary taste with verities of flavors with great service in our restaurant which
can grab the attention of customers.
Basic Strategy: Our basic strategy for Bellissimo is promoting “ice cream” which means we are
going to mainly focus on the quality and variation of flavors of our ice cream brand which ensures
the premium quality of our ice cream.
8
Brand Positioning for Bellissimo:
We are very careful about our brand positioning strategy because we are providing a premium ice
cream brand to our customers. So our brand positioning for Bellissimo will be sophisticated,
evident and unique from other ice cream brands by offering:
For ice cream parlor: “Coolest place for unique flavors” and
For general market: “Kingdom of flavors in your hand”
We are hoping that it will make strong positioning in to our customer’s mind.
Media Planning (Appendix- Media planning diagram):
Bellissimo is the first premium ice cream brand of Bangladesh. So we have to be very careful and
creative for doing media planning of Bellissimo because we have to keep the brand identity and
image of Bellissimo just like before. Our point of difference (POD) for Bellissimo is we are
offering exlcusive flavors in our Bellissimo Café which are not available in any other ice cream
parlor in Bangladesh. And our point of parity (POP) is in our ice cream, we can ensure the same
premium quality that you can find in any international and local premium ice cream brand like
Movenpick, New Zealand Naturals or Mi Amore.
We are going to do a whole year media campaign for Bellissimo which includes billboards, direct
marketing, personal selling, social media, PR activities, sponsorship and other promotional tools.
We will also give extra privileges for the Banglalink Icon partners and for this we are going to sign
a one year contract with poplar telecom brand in Bangladesh- “Banglalink” soon. For CSR
activities, we are going to help to build some schools in some rural areas in Bangladesh which will
also make a good impression to our brand.
Budgeting for Media Planning for Bellissimo (Appendix- Budgeting Chart)
As we are going to do a whole year media campaign for Bellissimo, so we are having a plan of
putting 5 billboard advertisements in 5 different developed and sophisticated places like Gulshan,
Banani, Uttara, Dhamondi and Kuril highway road. These five billboards will cost us total
1,950,000tk for a whole year rent. We will also give some print advertisement in both daily
newspapers and magazines which will cost us 140,000tk in a year. For direct marketing, we are
9
going to make some kiosk in some shopping malls like Jamuna Future Park, Bashundhara City
Shopping Complex, Shimanto Square at Dhanmondi, Pink City at Gulshan and also in some
private universities like North South University, Independent University and East West University.
These kiosks will cost us 100,000tk for a year. For personal selling, we will use direct mail and
SMS service which will cost us 40,000tk in a year. For social media we are going to spend a big
amount of 1,200,000tk because nowadays please are using so many social media Facebook,
Instagram, Youtube, Google+ and other popular social medias. SO we are going to spent tat huge
amount of money for capturing maximum portion of social media coverage. And finally for public
relation and CSR activities, we are going to help to build some schools in some rural areas of
Bangladesh which will cost us 200,000tk. In total, we are going spend 3,630,000tk for the whole
year media campaign for our brand Bellissimo.
Appendix:
Campaigning Timeline- Year 1 (2016)
Categories Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Billboards
Magazine/
Newspaper
Direct Marketing
Personal Selling
Social Media
Public Relation
Membership Card
ATM Card (SCB
&HSBC)
10
Banglalink Icon
Partner
Sponsorship
Online Advertising
Budget (2016)
Items Quantity Rate (Yearly) Sub-Total (Yearly)
Billboard Kuril- Tk. 300,000
Uttara- Tk. 450,000
Gulshan- Tk. 500,000
Banani- Tk. 400,000
Dhanmondi- Tk. 300,000
Tk. 1,950,000
Magazine/Newspaper Magazine- Tk. 40,000
Newspaper- Tk. 100,000
Tk. 140,000
Direct Marketing Tk. 100,000
Personal Selling Tk. 40,000
Social Media Tk. 1,200,000
Public Relation Tk. 200,000
Total= Tk. 3,630,000
11
Price Adjustment
he price adjustment strategies relate to all the strategies implemented by an organization that
takes into account the differences between customers and rapidly changing. The price adjustment
strategies are: geographical pricing, psychological prices, segmented prices, promotional prices,
international prices, supply and pricing of allowances.
Now here we will be only focusing on the ice-cream parlor called “Café Bellissimo”, a service
place where the customers will get the taste and experience of premium ice-cream along with the
service of a restaurant by Bellissimo where the customers will be able to spend a good quality time
with their beloved ones. Hence we are about to make some price adjustments considering the
present market situation.
Fields of price adjustment strategies include;
Discount and Allowance
Pricing
Segmented Pricing
Psychological Pricing
Promotional Pricing
Geographic Pricing
International Pricing
But here in terms of revitalizing Bellissimo, we will only focus on the Psychological Pricing,
Promotional Pricing, and Geographic Pricing in terms of creating more brand awareness, recall,
and recognition which will help us achieve the organizational goal.
T
12
PSYCHOLOGICAL PRICING
Many people judge the quality of the commodity price for taking a higher price as a sign of good
quality. Sometimes customers do not have information on actual prices of products as judging the
quality of the product by its price. This type of behavior requires sellers to increase prices of their
products despite the fact that real prices are low. Customers also lead to prices in their minds; these
prices are known as reference prices. In order to obtain higher profits, sellers have to influence the
reference price of the customers.
In case of Bellissimo we must consider the following things;
Bellissimo is a sophisticated café but not the
market leader yet. It doesn’t make any sense
when charging higher price but no such
revenue is generated. Whatever premium
pricing is being charged, the customers will
always go for the more established brands in
terms of paying more.
Bellissimo needs to have a very competitive
pricing strategy to fight with the existing
competitors such as, New Zealand Naturals,
Club Gelato, Anderson’s Ice Cream,
Movenpick, Cream N Fudge, and
BaskinRobbins.
Hence the pricing should be as follows to grab more attention of the customers;
CLASSIC BANANA SPLIT Triple Scoop – 465Tk > 399TK
BROWNIE FUDGE SUNDAE Double Scoop – 450Tk > 395Tk
STRAWBERRIES & CREAM Double Scoop – 365Tk > 299Tk etc.
13
PROMOTIONAL PRICING
Many organizations try to promote their products by cutting down the prices of their products
below list price or costs. These promotional pricing help merchants to attract customers in a short
period of time. However promotional pricing can be dangerous for the organization, because it can
ruin the reputation of the organization. Just as these practices are easily copied by competitors and
help organizations build their brand in the long term.
In case of Bellissimo, we would be offering
promotional offers to our customers to create
more brand loyalty which currently
Bellissimo lags. Eventually, these offers will
not be provided throughout the year due to
losing brand value. Therefore, we will
provide offers once in a month as well as
every Wednesday Bumper Offer – Buy 1 Get
1 Free etc. Again, the people of Bangladesh
celebrate each and almost every type of
occasions. Hence, there will be
bundle/combo offers during Eid, Ramadan,
Puja, Christmas, Pohela Boishakh etc. There
will be 20% off on every ice-cream cake on
the Father’s Day. These sort of time to time
basis promotional offers will help us gain
competitive advantage.
14
Geographic Pricing
The companies also charge different prices are the customers who live in different parts of the
country or the world. If customers are living in remote areas, companies have to charge higher
prices to cover the cost of delivery, but this will result in the loss of customers to competitors.
Therefore it becomes difficult for the company the possibility to apply uniform prices across the
country price or charge according to the geographical conditions in which the customers live. As of till now we will tend to increase our restaurants more in the premium locations of Dhaka
city, two more stores in Chittagong city, and one in Sylhet city. The pricing of Café Bellissimo
items will be adjusted considering the freight cost, miscellaneous cost, utility bills, customer’s
income as well as expenditure, location set up cost etc. Hence, the pricing of the stores in Dhaka
will be different than Chittagong and Sylhet.
15
Future Business Plan
Restaurant: We are planning to expand Restaurant partnership through franchises in different part
of Dhaka. These franchisees are going to maintain the quality requirements given by us, and at the
same time they will provide enough visibility to our ice cream refrigerators. Initially we are taking
a list of 500 restaurants across the country based on their popularity and customer preference.
Based on this list, we are going to sign a contract through which they will be responsible for
promoting and selling our products in their restaurants.
Setting up new Café Bellissimo: Based on the consumer responses from the Banani outlet, we
are going to set up new Café Bellissimo in other areas of Dhaka city, like Dhanmondi, Uttara,
Bashundhara, and Gulshan.
Store Availability: There are more than 1200 stores in the country who sell Bellssimo products
in their store. Out of them, 60% are located in the central part of Dhaka division. And the rest are
mostly located in major cities like Chittagong, and Sylhet. Our plan is to spread the store
availability in the other parts of the country. Initially we will start with all the district cities. Once
we secure a significant brand awareness, as well as market share among the people residing in
those areas, we will move towards the upazillas. In 5 years, we aim to have our store availability
in all the upazillas of Bangladesh.
Going Global: We also plan to go global by starting to import our product in our neighboring
countries. Moving forward, we will sail for Middle Eastern countries.
16
RECOMMENDATION
1) In the Banani store we used to showcase products of Aftab’s food product, which completely
does not go with our brand image. This is why we recommend to stop showcasing any third party
products, or even if we do, we go through specific and careful selection.
2) We currently have an option for catering services, where customers can order in bulk for an
event or party. But we require portion of payment in advanced, which makes It little difficult for
customers to come and make the payment, whereas they could easily order them online. We
propose to enable Cash on Delivery for the Catering Section to ensure customer convenience.
3) We propose to retail Bellisimo Creation’s exclusive items like PISTACHIO SUNDAE,
CLASSIC HOT FUDGE SUNDAE, CHOCOLATE CHUNK SUNDAE
4) A change in the home page of the website is much required to make it look simpler, and at the
same time ensure interactivity by initiating live customer support through online chatbox.
17
REFERENCES
1. Bellissimo - Ice Cream Menu | Bellissimo Website, 2015. Retrieved from:
<http://www.bellissimobd.com/cafe-bellissimo/cafe-menu/#sthash.SgrRKTiJ.20Gs77m3.dpbs>
2. Price Adjustment Strategies | MBA Tutorials. (n.d.). Retrieved from: <http://www.mba-
tutorials.com/marketing/627-price-adjustment-strategies.html>