Agenda:
Agenda Introduction Industry at a glance Market Analysis Cost Analysis SWOT Analysis
Introduction:
Introduction Ice-cream is a frozen desert. The Prevention of Food Adulteration (PFA) Rules, 1955 define ice cream as “a frozen product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and 0.5% permitted stabilizer and emulsifier.”
Industry at a glance:
Industry at a glance The global market of ice creams is worth $61.6 billion in terms of retail value or 15 billion liters in terms of volume. The ice cream industry in India is worth Rs. 2,500 crores The per capita consumption of ice cream in India is approximately 300 ml, as against the world average of 2.3 liters per annum Vanilla, Strawberry and Chocolate together constitute approximately 60% of the market .
Market Analysis:
Market Analysis The industry can be divided into the branded market and the unbranded market.
Cost Analysis:
Cost Analysis Do you know that a 100 ml scoop of your favorite ice cream that you ordered may contain up to 50% air! Ice – Cream mix cost (per liter) Rs. 60-65 (-) 1 liter air (per liter ) Rs. 32 COST OF PRODUCTION (per liter ) approx. Rs. 32 Rs. 32 COST OF PRODUCTION (per cup 150 ml each ) approx. Rs. 5 Rs. 5 Selling, Distribution & other overheads (per cup) Rs. 5 TOTAL COST (per cup) Rs. 10 Rs. 10 PROFIT (100%) Rs. 10 SELLING PRICE Rs. 20
SWOT Analysis:
SWOT Analysis Strengths: High profit margin Growing at rate of 12% Y-o-Y Wide variety of flavors Weaknesses: Low per capita consumption in India The seasonal nature of the industry Durability of Ice-cream is not good
SWOT Analysis:
SWOT Analysis Opportunities: New flavors can give competitive advantage New products like low fat ice-creams Innovative advertising & marketing strategies Threats: The industry players not only face competition from their competitors, but also from other like foods Erratic power supply High rent charged for floor space, especially in malls
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