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.

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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.

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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)

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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.

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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

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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.

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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.

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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

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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)

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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

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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

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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.

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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.

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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.

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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.

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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.

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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>