Quality of Ice Cream

Ice cream is not graded on the market, as it is sold by the manufacturers directly to the
retailer or consumer. The qualities that constitute a good ice cream are left more or less to
the judgement of the individual manufacturers and his ability to judge the preference of
the public. In general it is conceded that a high quality ice cream should have a rich
creamy, sweet taste, be smooth of body, and close texture.
The richness of ice cream is influenced primarily by the fat content. If ice cream contains
below 10 per cent of fat, it lacks richness. If too much milk fat is used it will be too rich.
An individual cannot eat a very large serving of ice cream when it contains much more
than 14 per cent of milk fat. Because of this fact, commercial ice cream seldom contains
more than 14 per cent of fat, and if the laws within the state in which it is sold will
permit, a slightly lower fat content is to be preferred.
The sugar, stabilizer and milk solids not fat in ice cream contribute to its quality and
palatability. The sugar content should not be below 12 per cent. The general public
prefers an ice cream containing 16 to 18 per cent of sugar. For several reasons, it is not
practical for the commercial ice cream to contain as much as 16 to 18 per cent of sugar. A
good quality of commercial ice cream contains from 14 to 15 per cent. The milk solids
not fat will range from 9 to 11 per cent in a high quality ice cream, the gelatin or other
stabilizer approximately 0.25 to 0.5 per cent, and the total solids content may range from
30 to 40 per cent, eggs are sometimes used commercially, and contribute a certain
richness and smoothness to the finished ice cream. Under the law the manufacturers have
to use 10% of fat, 10% of SNF, 12 to 14% sugar and rest are water and air. Following are
being write-ups on leading brands of ice cream.
History:
Ice cream is a frozen product made from a combination of milk products and eggs, sugar
dextrose corn syrup etc. It was once considered a sophisticated item of food is now
becoming increasingly popular among the people. There are small, medium and large
manufacturers of ice cream in Pakistan. Upto early nineties there were only 4 well known
brands manufactured in Pakistan namely IGLOO, POLKA, ROCCO and YUMMY. In
1995 a multinational company Lever Brothers Pakistan entered in field and started
manufacturing world famous ice cream Wall's in Pakistan. It has been estimated that total
installed capacity for Punjab including recognised manufacturers, hotels, restaurants and
unorganised sector is about 15.5 million litres annually. The provinces of NWFP and
Balochistan installed capacity has been estimated about 6 million litres per annum. Now
the total installed capacity of ice cream in Pakistan is about 40 million litres per annum.

Weaknesses in the firm strategies:

 Resist to change
 Lacking of strong marketing department
 Unable to maintain brand name
 Entrance of new competitor in the market and yummy are doing nothing to compete
with these changes
 Yummy are not maintaining the relationship with its retailers, they only have contacts
with its existing retailers, they are not expanding their retail network throughout the
country, hence decreasing the market share
 The core competency for any firm is to create good relationship with its customers for
which the new upcoming industries are focusing on the CRM (Customer Relationship
Management) strategy, which is totally absent in yummy.
 The firm is not raising finances through public offerings due to which they totally rely
on their internal profits, where as the major competitors are raising funds through
IPOs
 Quality control management is not working effectively on the specifications of the
product

Weaknesses in the product:

 Ice-cream quality is considered good when the fat level is more then 10 % but not
exceed 15 % whereas the level of fat in yummy is less than 7%, due to which the
richness of ice-cream is compromised
 Since the yummy ice cream been launce the logo & packaging for the product remain
unchanged.
 The packaging is also unattractive
 The product is not designed as much configured according to the segments in the
market because the segments are not properly defined

Segmentation & Targeting:

Problems with existing segmentation:
 They segmented the whole market into two segments, adults and children.
 They ignored the importance of segmentation, because there are many sub segments
in one segment, because they focused on the push strategy produce and pushed the
product into the market
Problems with Targeting;
 The segments which they choose is only two segments
 They target only these selected segments
 The clear defining of segments are missing

Solutions to the Segmentation & targeting:

 We segment the market into main four categories;
 Demographic
 We are segmenting the market on demographic bases by following ways:
 Age Group between 8-40
 Gender Both
 Income level 20000-60000
 Geographic:
 Hot & humid area
 Urban populated areas
 Behavioral:
 Usage rate, because the usage rate is higher among youngsters
 Socio-economic factor: spending patterns of different age groups

 Psychographic:
 Health Conscious people
 Education level

Positioning:

4Ps
Product:
Product or service design that maximize the customer satisfaction. This does not mean
that it restricts only to the product you provide but the whole experience, for instance thet
you buy the ice-cream form the yummy actually you are practicing the whole experience
of yummy including the actual product, services at the ice parlour, packaging, flavor

 Product line extension: thus we include the new flavors, and new sizes also. Offering
diet ice cream, ice-crusher in ice parlors, institutions, renowned restaurants, cafes this
product category is targeted to the middle higher class segment
 Packaging should be changed and design creatively
 Logo for the yummy ice cream must be revised

Price:
To set the ideal pricing scheme, we need to study our internal cost, know how much our
customers are willing to buy and our competitors’ offerings. Ask ourselves the objective
of our pricing strategies. Is it about profit maximization? Or, is to about market share?
Know how much our customers are willing to pay and the competitive environment. Are
you the only player in country? How likely will your customer switch to your current or
potential competitor?
After studying the pricing strategy for our product we should not compromise on this
because the current pricing strategy is applicable
Placement:
To get our product to the consumer at right place and at the right time.
 through company sponsored trolleys
 Through ice-parlors
 Through retailers
 Yummy on-the-go (Mobile units shop)

Promotion:
Inform and persuade your customers to buy your product. There are three major types: 1)
personal selling, which involves a group of sales representatives to contact the customers
directly via phone or face-to-face meeting; 2) mass selling, which include the typical
advertising, editorials or publicity to inform a large group of customers all at once; 3)
sales promotion, such as discounts and trials to speed up your customers’ purchasing
decisions.
 Ad campaign for our new products
 Adding cash prizes within the product to penetrate into the market
 Special benefits given to retailers such as commission, also providing company
branded freezers only to the high volume buyers upto 2500 litre in a month
 Rewards for loyal customers
 Promote the health benefits of ice cream such as to lower down your blood pressure,
etc