Assginemnt Za N Ze.docx

An Assignment “Marketing Activities of Za ‘n Zee Brand of Kazi Food Industries Ltd.”

Executive Summary Around 200 BC a frozen mixture of milk and rice was used in China and a combination of snow and saltpeter was used to lower the mixtures' freezing point to below zero and that's how ice cream was invented. Ice cream globally ranks among the top 10 snacks enjoyed by people of all ages in all seasons, even winter. In Bangladesh, the ice cream industry dates back to the 1950s and is currently estimated at BDT 700-800 crores. The ice cream industry comprises the following major brands: Igloo, Polar, Kwality,Bellissimo, Savoy and Bellisimo.Za n Zee is a brand of Kazi Food Industries which is a sister concern of Kazi Farms Group. Za ‘n Zee ingredients are imported from Australia, New Zealand, China and Italy. The main function of the distribution unit of Za “n Zee is to create a sequence of effective network so that a strategic edge over competing channels is created and ensure a continuous flow of its products to its target market. The distribution channel starts from their factory at Beron, Ashulia in Dhaka and ends at the retail outlets stretched all over the country with a long fleet of refrigerated vans. Za ‘n Zee wanted to position their brand as a regularmarket,that produces natural quality products from their inception.Za ‘n Zee has priced their products at a regular price than their competitors. The company has decided to launch the 9 popular flavors of their retail market. They have developed a growth strategy to target the existing market with new products.Za ‘n Zee plans to launch for everybody as a large percentage of the demographics are very familiar with these. So day by day they are very popular in regular retail stores. Za ‘n Zee will make the best use of social media to reach their potential customers.Za ‘n Zee will work their way in their customers' heart by knowing about them in the most creative way possible.To maintain a healthy relationship with all its suppliers, Za ‘n Zee plans to have smooth and direct communication with the local and foreign suppliers on a regular basis.The value proposition of Za ‘n Zee is more for more. Their comparative regular price is justified by the super natural quality of the product. The IMC activities will engage potential and existing customers. Awareness will be created regarding the new products as well as for the brand. People need to know why Za ‘n Zee is more popular then another local ice cream brand. Consumer awareness regarding the brand will help Za ‘n Zee to justify its regularprices to consumers.Za ‘n Zee will engage its customers in fun activities to enhance interaction with them and build customer relationships.Differentiation is one of the strongest points of Za ‘n Zee. The content of the product, the designs and aesthetics in communication, the packaging-everything is unlike any other current brand in Bangladesh. And hence, Za ‘n Zee is readily differentiated by customers.

Introduction The recent trend towards maintaining a solid platform by adding novelty imposes a challenge for majority ice cream companies in particular those, which are trying to conform their services to international standards in an erratic business environment. Za ‘n Zee, believes in ensuring long-term existence by being profitable, successful and sustainable. They very keenly take on customers’ advice, try and amend as well as add new dimension to their business in order to ensure survival in this highly competitive industry.

Ice cream globally ranks among the for 10 snacks enjoyed by people of all ages in all seasons, even winter. In Bangladesh, die ice cream industry dates back to the 1950s and is currently estimated at BDT 700-800 crores. Increasing income and consequently living standards, along with prolonged exposure to global influences have fueled growth and developed a huge consumer base. This has also ted to an emergence of a lot of market players who continue to offer competitive product offerings and engage in marketing efforts. The industry has experienced massive growth in the last 5-7 year with the market size being around 250-300 crores in 2009. Za ‘n Zee Ice Cream was launched in 2014 as an industry disruption. Za ‘n Zee ice cream in regular servings was previously unheard of in Bangladesh and as a result, the company engaged heavily in distinct marketing efforts and campaigns. Yet still, it maintains a fragile brand equity as the ice cream industry is yet to fully adapt to a regular offering for regular customers. However, Za ‘n Zee entrance also caused retaliation among other industry players with Igloo launching its own regular range, Mi Amore this shows that Za ‘n Zee has a competitive market offering. The Bangladesh ice cream industry can be divided into two segments- the retail segment and the boutique segment.

Background of Bangladesh Ice Cream Industry Around 200 BC a frozen mixture of milk and rice was used in China and a combination of snow and saltpeter was used to lower the mixtures freezing point to below zero. In the sixteenth century, the Mughal emperors used relays of horsemen to bring ice from the Hindu Kush to Delhi, where it was used in fruit sorbets, hi the Asian sub-continent, the oldest reference to ice cream and cold treats (particularly kulfi and milk based ice cream) can be ascribed to "Baby Ice cream". Fall-fledged operations ' were incepted by West Pakistan based K, Rahman & Company, which acquired business licenses for the I Coca-Cola brand and the development of Igloo Ice Cream, Soon after, the company started operations in East Pakistan (currently Bangladesh). Both the factories of Coca-Cola and Igloo Ice Cream were located in Chittagong. In 1973, post-independence the newly formed government of Bangladesh

In 1982, Abdul Menem Ltd won the government tender as the highest bidder and subsequently acquired Igloo Ice Cream. Igloo came out ahead in the competition and Polar started experiencing a significant drop in market share. In 2004, the brand Polar was pulled out of the market and new players like kwality emerged. But Igloo remained dominant and grew tremendously. Other brands like kwality, Savoy etc. were present in the market but had been able to capture a very insignificant amount of market share. Only the market for Igloo significantly expanded. In 2009, the 'Polar' reemerged under the umbrella of Urban Development. Alongside, some multinational ice cream brands like Movenpick, Baskin Rabbins and Cream & Fudge introduced ice cream parlors in Bangladesh. With this, a new dimension in the local ice cream industry was created called Boutique ice cream shops. These ice cream parlors targeted the upper-middle class and tried to cater to the emotional appeal of the consumers who up until then could not find any foreign ice cream brands in Bangladesh.

In January 2014, another new player named Za ‘n Zee Ice cream emerged in this already-competitive industry. Za ‘n Zee Premium Ice Cream is a concern of Kazi Food Industries Ltd It is the first brand to produce premium quality ice cream in Bangladesh and was first launched at the Dhaka International Trade Fair (DFTF) 2014.

In the current year, the industry has seen a few new players like Golden Harvest (Bloop) and Cold Stone Creamery. Needless to say, the industry has been growing and has been estimated at BDT 700-800 crores in the fiscal year 2015-16. Given the product line diversification, the emergence of more players and stiff competition, it is only projected to grow further.

Overview of Kazi Farms Kazi Farms Limited was established in 1996 as a hatchery for imported eggs; the following year it started its own parent farms. In 2004 production started in our grand-parent (GP) farms. which was responsible for Bangladesh's first exports of hatching eggs and day-old chicks in 2004. In that year, our Managing Director, Kazi Zahedul Hasan, was named Businessperson of the Year by the Daily Star/DHL Business Awards.

Management Structure of Marketing Department of Za n’ Zee Brand Zakaria Hossain (DGM) Ashik Hasan (AGM) Rajib Saha (Deputy Manager) Saimun Jahan (Assistant Manager) Moshior Rahman (Senior Executive) Santonur Rahman (Senior Executive) Rifat Ahmed Managment Trainnee Naim Hossain (Managment Trainnee )

Award and Achievements

Pic: Management and communication Award in 2018

Mission & Vision  Mission To be the leading ice cream brand in Bangladesh

 Vision To provide international quality ice cream products to the consumers with a wide range of new and exciting flavors.

Objectives of Za ‘n Zee Brand  Core Values The core values of the Za’ n Zee brand are:

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To provide the customers with international standard ice cream products coming in various flavors

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To maintain the international standard of ice cream products by using 10% or more milk fat and high-quality natural ingredients,

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To resonate the brand value as a preiniotn ice ereatn among the customer group.

Core Objectives

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Provide customers with high-quality premium product and -become the leading local icecream brand

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Create brand awareness and top of the mind recall

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Maintain premium positioning of the brand through communications & activities

Our Product: Za ‘n Zee Za ‘n Zee contain natural milk fat. Also the 9 flavors Za ‘n Zee has chosen to launch are quite extraordinary: Za 'n Zee is introducing 9 categories of ice creams-

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Cup -100 ml

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Tub- 500 ml

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Tub- 1 liter

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Bar

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lolly

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Cone

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Malai

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Ice cream Sandwich

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Rock 'n Roll

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Triple Rocker (Ice cream cake)

What is Marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability. Marketing is a widely used term to describe the communication between a company and the consumer audience that aims to increase the value of the company or its merchandise or, at its simplest, raises the profile of the company and its products in the public mind. The purpose of marketing is to induce behavioral change in the receptive audience

Marketing Mix 3.2.1 Product Mix( 4ps’) Product The target market for Za ‘n Zee is young, adventurous and indulgent.It is a regular product containing naturalmilk fat, is made from exclusive farm fresh strawberries, finest vanilla extracts and real cocoa These products also have breweie pieces and chunks of Oreo cookies in them. The innovative flavors and ingredients, coupled with the premium quality will help Za’ n Zee to compete with the players in the boutique format ice cream and tubs and lifer boxes of the foreign brands.

Price Za’ n Zee uses the value added pricing for all its' products as they believe there's more to a product than price alone and it is quality. Za’ n Zee does not aim at cutting prices to match competitors, but attach features to differentiate their products from competitors* offers. Creations will food the same strategy as they add several fresh features to their products and thereby add customer value. In return they will charge more for the value-added product. The selection of strategy is ideal but Za’ n Zee needs to focus on communicating the rationale behind using this strategy to their target market. Otherwise the customers are left thinking Za’ n Zee is just a

fancy product that charges more due to its brand name. When theproper message is communicated customers will be willing to spend the additional price they willknow that they are getting more value.Za ‘n Zee invoice price is BDT J50 and its market retail price is BDT 180 ITEMS Triple Rocker-Ice Cream cake

PRICE 280/-

Tub-500 ml

100/-

(vanilla,chocolate,sataberry,mango) Tub-1 liter (vanilla,chocolate,straberry)

190/-

Cone -Vanilla & Chocolate

45/-

Cone-Vanilla & Straberry

45/-

Zaa n Zee Bar

25/-

Ice Cream Sandwich: Vanilla Biscuit&Vanilla ice cream

30/-

Chocolate Biscuit&Vanilla ice cream

30/-

Zaa n Zee Malai

16/-

Lolly: Umbrella Shape-Orange,Lemon,Mango

16/-

Rocket Shape-Orange,Lemon,Mango

16/-

Leaf Shape-Mango.Lemon

10

16/-

Heart Shape-Orange,Lemon

16/-

Rock n roll- Vanilla & Mango

18/-

Rock n roll-Vanilla & straberry

18/-

Cup-100 ml

20/-

(vanila,chocolate,sataberry,mango) Cost breakdown for I unit of Za’ n Zee

Place The regular flavors are currently available in supper shop. Initially upon launching the 250 ml tubs, Creations will be available in,A category stores, chain shops and superstores. Since these are not regular, traditional flavors Creations will not be very popular retail stores as soon as they come out. After the end of the first financial year, as the Creations product gain popularity and start to make a name for them. Za ‘n Zee will make these available in regular retail stores.Za ‘n Zee will also partner up with mid to high end restaurants where the Creations' will be available as scoops. - Residential Are -Shops (Infornt of school & collage)

Promotion Za ‘n Zee will promote Creations through radio advertisements, social media, ad placements in newspapers like Prothom Alo Daily Star, ad placements in life style magazines and newspaper supplements, POS materials, and sponsorship events. Since the use of billboards will soon be banned by the government of Bangladesh, Za ‘n Zee will not include billboards in their promotional activities. A detailed IMC plan is given in section 9.0.

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Sponsor

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BP

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Activation in events

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TVC

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Radio

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Degital media(Facebook,wed site)

3.2.3 Service (3ps’) People Za’ n Zee will host sessions with selected students from different universities and followers of their social media page The Creations flavors will be offered for tasting and these sessions will be carried out in a fun and interactive manna-.

The staff at The Creations scooping stations located in malls and restaurants will be trained to be friendly and patient in dealing with customers and organized and clean under pressure during peak hours. They will be ready to juggle requests for samples, cones, cups, and more and be consistent regarding the serving size. Because no matter how good the ice cream is, good customer service is required to get customers coming back. Process To escalate the sale of Creations and to assist customers Za’ n Zee will hire Assistant Buyers who will be stationed beside the Za’ n Zee freezers. Since the Creations flavors are new in the market, the assistant buyers can answer customer queries regarding the products. The customers can also request samples to taste the flavor before making a decision.

The sales department of Za ‘n Zee will ensure stocks at all times through relationship building and close cooperation with the distributers and retailers. Although this might be a costly philosophy in terms of inventory holdings, an integrated approach wilt increase profitability in the future. Physical Evidence Every time Za‘n Zee has launched a new product or flavor, they've drowned all communication channels with their promotions which create positive vibe and intrigue. Za ‘n Zee achive huge success at engaging the customers in their product development and promotional activities. They will continue to interact with consumers through digital media to get to know their taste and preferences. Employees interacting with consumers, through digital media, shall remain highly active online and will be given further training to cope with changing trends.

Marketing Strategy Value Proposition The value proposition of Za’ n Zee Creations is more for more. Their comparative high price is justified by the super natural quality of the product.Za ‘n Zee' target

comprises ofpeople that are indulgent,

enthusiastic about showcasing and are willing to pay a little more to have a superior quality product. Objectives and Strategies For a success, Za ‘n Zee needs to focus on. Generation of awareness among people about the introduction of three new flavors in retail

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Launch successful product trial to create and increase customers

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Consistently provide superior quality product turn customers info regular consumers

Porter's Five Forces Model

1.Threat of New Entrants: High The ice-cream industry of Bangladesh is a rapidly growing one due to increasing consumer demands Foreign brand like Cold Stone Creamery are entering the market with the offer of unique flavors and the product customization. 2.Threat of Substitute Products: High •

Ice cream products by local and foreign companies

•

Ice cream and desserts offered in parlors, cafes and restaurants.

•

Since Za ‘n Zee is priced at a higher level than most local brands, they lose consumers in retail shop, ice cream vans.

3.Power of Bayers: Strong

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Ice cream is a seasonal product, it is not a regular purchase and weather influences ice cream consumption.

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Consumers often hesitate to pay a high price for ice cream at a retail store.

4. Power of Suppliers: Medium

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Raw materials are imported and the company finds dealing with their foreign suppliers easy since they abide by the detail mentioned in the contracts.

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One of Za ‘n Zee' top differentiating points is the quality of their product and thus the quality of their raw materials. The suppliers input are fairly critical for them since they want the best possible material along with cost advantage.

5. Rivalry among Competitors: Medium

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Igloo and Polar are Za ‘n Zee' top competitors and both these brands have a lower price.

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In competition with family packs of foreign brands in superstores.Za ‘n Zee product sale is higher than any other local or foreign brands in superstores.

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Za ‘n Zee is the local leader in product innovation in terms of both product variation and flavors.

Competitor Analysis: i. Price, Product and Selection: The ice-cream industry of Bangladesh is growing significantly. Change people's income level and lifestyle has encouraged many local and foreign firms to join this industry. The local brands like Igloo, Polar, Kwality etc. are offering traditional ice creams to the customers.

ii. Quality: According to international standards, ice-cream must contain 10% or more milk fat. Hence, its superior quality is one of Za’ n Zee's biggest strengths. The flavors of regular contain 15% milk fat which makes the product even more delicious and creamy.

iii. Distribution Igloo has a widespread distribution channel in Bangladesh. The distribution channel of polar is a bit narrow iv. Promotion Igloo mainly focuses on the outdoor media wlrich includes banners, papered posters, danglers, painted displays, billboards, neon signs as its creative channels to convey its message to its target markets. Polar has recently started to relate itself with festivities like Pohela Boishakh and Ramadan and focused orr launching new products. Both Igloo and Polar uses TV commercial to attract its upper income segments. v. Packaging Since ice creams are impulse buys to a certain extent, catching the eye of the consumer is often half the battle won. All the brands nowadays use the color yellow, red and green predominantly in their packaging. Igloo and Polar both useeolorfei packaging.

vi. Analysis and recommendation: It is interesting to note that while Polar offers almost the same quality of ice creams like Igloo at a similar or a lower price. Igloo still has a higher market share (51%) than Polar (26%). We can conclude the market is not sensitive to price-quantity ratio and rather depends on taste, quality assurance and brand name. Thus, Za’ n Zee should offer the three new flavors of natural in a price which justifies the quality of the ice cream.

Performance Highlights: 2008

2009

2010

2011

2012

2013

Current Ratio

0.133

0.280

0.306

0.157

0.179

0.223

Cash Ratio

0.007

0.074

0.059

0.060

0.088

0.076

Total Debt Ratio

95.0%

93.2%

93.7%

91.1%

92.3%

88.8%

Debt Equity

19.08

13.74

14.96

10.24

12.02

7.97

Equity Multiplier

20.08

14.74

15.96

11.24

13.02

8.97

Long term Debt

0.94

0.92

0.93

0.89

0.91

0.87

Return of Assets

0.03%

0.06%

0.07%

1.07%

1.17%

1.29%

Return of Equity

6%

9%

10.8%

12.1%

15.2%

11.5%

31.59

28.79

12.49

16.74

28.09

15.23

9.85

17.60

17.20

18.39

2.14

1.81

Short term Ratio

Long Term Ratio

Ratio Profitability Ratio

Price Earning Ratio-time Earning per share

Growth Strategy of Za ‘n Zee Brand Za ‘n Zee lonch 2014 in international trade fair.In 2014-2016 tne growth stage of Za ‘n Zee brand are given below;

Figure: Growth Stage of Za’ n Zee

PESTLE Analysis: 

Political: Laws, government agencies and pressure groups influence and limit various organizations and individuals in a given society. The political situation in Bangladesh is very unpredictable. In Za’ n Zees' initial years Bangladesh was unda" heavy political duress; during road blockades and strikes it was difficult to deliver ice creams at retell and superstores. These uncertainties can cause a lot since the products that are taken out the factory for delivery, deteriorate in quality if they stay run the moving trucks for long.

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Economical: These include the factors that affect consumer purchasing power and spending patterns. The economic forces are crucial to all businesses, Za’ n Zee takes into account the economic factors like the rate of inflation and the level of income so that the pricing strategy can be determined and Jives of demand, sales, profits, etc. can be forecasted. Za’ n Zee also needs to

take into account the exchange rate as they import raw materials. It can have a significant effect on the cost of production 

Social: It is the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics. The population growth rate in Bangladesh is 1.19% (Bangladesh Population 2016-WorIdometers). If is of importance to Za’ n Zee because if it shows an increase in the number of young adults between 18-35 years it will have to increase its production capacity, as they are Za’ n Zees' main consumers. Currently the median age in Bangladesh is 26 years. If there is a genera! increase in the propulsion size or increase in migration from rural to urban areas there will be an increase in demand as well. 34.2 % of the population is urban and the percentage is growing and since Za’ n Zee mainly serves urban consumers this information is vital for them.

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Customers now are more aware than ever about the quality and origin of the products they consume. They are health-conscious. They are concerned about the environment and are interested in critical information like the carbon footprint left by the originations they are associated with. This might be beneficial for Za’ n Zee as they have portrayed active interest in protecting the environment by introducing eco-friendly packaging.

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Technological: It refers to the forces that create new technologies, creating new product and market opportunities. Technology greatly influences Za’ n Zees' marketing strategies. Most of the work in the factory is done by machines rather than manpower. Often mere is heavy load shedding that hampers production. To meet the market demand the machines are frequently operated overtime. Special storage systems and transports with freezing compartments are required to prevent the ice creams from going bad. Ice cream requires a temperature of -20°C to be maintained inside die freezers. Though the power supply of Bangladesh is quite poor, rt has been improving over the last 3-4 years and for this reason, retailers are being able to host more than one freezer in their shops. This has led to an increase in supply of ice cream nr the market:

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Legal: Laws such as health and safely legislation regulates the legal environment of the ice cream industry. According To Bangladesh Standards and Testing Institutions the ice cream companies must follow BOS 1083:2006 standard. Za’ n Zee is BOS 1083:2006 certified at the moment and so are its competitors.

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Environmental: It comprises of the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Since all the raw materials are imported, natural disasters in Bangladesh does not disrupt Za’ n Zees' production. Bat following^ massive natural disasters, sate may fall Bangladesh is a tropical country and

temperatures can go up to as high at over 40°C in summer. The temperature combined with a very high percentage of humidity creates m uncomfortable weather. This naturally generates the sales of not only ice cream, but various other thirst quenching products that give some relief in scorching heat like carbonated drinks, juice, mineral water, etc.

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