Iceland

University of South Asia B.B.A

Presented to: Asad Hassan Butt

Presented By: Adeel Shahbaz Agha Haider Ali Kamal Baloch M.Ali Rehan Afzal Agha M.Ahsan
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PREFACE
In order to be able to cope with the changing environment it is necessary to have some practical experience. As the students of Business Administration we have to pass through a series of various managerial techniques. During this practical course we are provided with an opportunity to learn that how the theoretical knowledge can be implemented in practical grounds.

ACKNOWLEDGEMENT
I am highly grateful to almighty Allah who gave me the power to complete this report. I am also highly thankful to my honorable teachers for theirs guidance. I am indebted to all the employees of Iceland Special thanks to Atiq- ur Rehman & Mr Ilyas Khan Baloch

Introduction
Iceland is one of the famous fresh fruit juices, shakes & dry fruits chain in Lahore. It was established in 2002 as an ice cream parlour in DHA near uptown LA. At first Iceland was solely owned by MR Atiq- ur Rehman .Later Mr Ilyas Khan Baloch joined Iceland & became 50% partner with Mr atiq-ur-rehman . But unfortunately that branch has to be closed. After that Iceland was relaunched & came with new product (Juices, shakes & dry fruits ) . They opened their 1st branch after relaunch in DHA H- block. After that Iceland emerged as one of the best Juice & shakes chain in DHA . Later in Dec 2003 iceland opened their 2nd branch at Hussain Chowk liberty After the succeesss of 2nd branch Iceland decided to expand their network to different areas of Lahore. 3rd branch was opened in 2005 in Johar town at Allah Ho Chowk. Today Iceland is one of the market leaders in juice & shakes & has 6 branches in Lahore & 2 outside Lahore.

Iceland is providing totally fresh juices and shakes and traditional drinks as well so from the last few years. People are very much conscious about their health and mostly people are like fresh drinks rather than the pack drinks. Iceland is also the distributor of Dry fruits in Lahore they also provide quality dry fruits to Consumers & also lewading super stores in lahore like Alfateh & HKB & Punjab ice cream

Mission
Establish Iceland as the Local leading source of healthy energy in the form of freshly blended juices and creamy shakes with an uncompromising commitment to making a difference through our values

Vision

Explore all over the Pakistan from Fresh juices, providing for all their needs always with the assurance of outstanding quality.

Product & Services

Fresh Juices: We make fresh juices 15 flavors in juices available throughout the year some of them are Pineapple, Mango, Apple, Cocktail, Grey fruit Grape, Cocktail special Seasonal juices: In seasonal juices we initially introduced Pomegranate (anar) Strawberry Lichee ,cherry, Peach Plum, Seedless grape. Milk shakes: 13 flavors of Milk shake Apple, Pineapple, Banana, Chocolate, Chic choc milk shake. Seasonal milk shakes: Seasonal milk shake is available in 8 flavors Strawberry, Lichee, cherry, Peach, Plum Fresh Anjeer, Dates Dry Fruit Milk Shakes: Dry Fruit Milk Shakes include Kaju milk shake, Anjeer, Badam pista, Kaju Anjeer, Badam pista illachi Our specialty Specialty is in Badam pista with fresh cream, dry fruit with fresh cream Anjeer with fresh cream.

Processes
There are many processes which are a part of Iceland. It includes making process, raw materials, supply of raw materials to their branches etc.

Raw Materials
Iceland collect fruits with are used to make fruit juices & shakes from fruit market. Iceland has their own vans which collects fruit from the fruit market then bring it to Iceland branch at Allah Ho chowk in Johar town from there the whole fruit is supplied to every branch. For making shakes the most important ingredient is milk. Iceland never compromise on quality. Iceland has a contract with olpers. They supply milk to them. Iceland has latest juicers & blenders to provide their customers with best fruit juices & shakes. Iceland also has a contract with a paper mill in Khayaban-e-Iqbal who makes cups for them in this process Iceland also check the quality of paper used to make cups & lids. The printing on the cups were also done there and then the cups were brought & supplied to all branches of Iceland through their own vans. Iceland at Allah Ho Chowk work as a head office & all the raw materials are collected at this point and later supplied to all branches.

Process of making shake

Add fruits

Add Milk & Sugar

Shake it in a machine

Put it in a cup ustomer

Serve to customer

Process of making Juice

Add fruits Add Sugar Shake it in a juicer 6 Put it in a cup Serve to customer

PESTLE Analysis
Political & legal forces
Taxation Law If government imposes heavy taxes on the industry then it badly effects the industry growth. The taxes impose is from government side and it varies from industry to industry. Juices have no tax except sales tax. Labour Law Labor is being privileged here having all the laws. Iceland also follow these laws like government announce minimum salaries of an employ Rs 6000. Environment protection Law They do concern for environment and contribute more and more for the betterment of environment. Foreign trade regulation Foreign trade regulation does not affect the overall policy and the working of the Iceland because they operate locally not internationally Political Instability The government stability also plays a great role for any industry. In Pakistan Government face lot of difficulty from the side of terrorism and also its activity that badly effect environment of the country which is totally very upset. Recently in Punjab instability of Government creates lot of problem for the industry like shortage of electricity that badly affects the industry operational process. Iceland has not much affect this condition but in future it may be face some difficulty for operating.

Economic forces

Inflation Rate Now in Pakistan inflation rate is almost 22.3%. Economic growth Rate Economy growth rate accelerate is 7+

Social factor

Health Conciousness Today people are more health conscious so Iceland identifying this need of the people they are also producing health conscious fresh juices with more vitamins. Demographic Trend In Pakistan the population growth rate is 1.828% in 2008 and total population is 167,762,040 (July 2008 est) Age structure 0-14 years: 15-64 years: 65 years and over 40% (male 33,293,428; female 31,434,314) 56.9% (male 48,214,298; female 46,062,933) 4.1% (male 3,256,065; female 3,542,522)

Key Indicators Population: Growth rate: Birth rate: Death rate: 164,741,942 (July 2007 est.) 1.828% (2007 est.) 27.74 births/1,000 population (2007 est.) 8 deaths/1,000 population (2007 est.)

Environmental concerns
About the environmental concerns, Iceland also play it role in this field. Work Life Quality Quality of work life is very safer & environment friendly. Lifestyle changes They consider quality life changes and take advantages of accordingly so that customer can convinced as well as it plays a vital role to attain & retain the customer. Consumer adopts the trend of changing environment because of modern facility as well as globalization they are aware about each and every thing happening all around them.

Technological forces

New products Iceland is also focusing concentric and conglomerate diversification because in present era it is not possible for any organization to exist in market for long run by providing just one product. So Iceland is diversifying according to changing demand of customers and trends.
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Product innovation Product innovation is becoming more necessary for the organization because of globalization people are becoming aware about the changes being taken place around them so in order tactical the situation Iceland is focusing on product innovation by introducing new flavor of juices with the passage of time. Productivity Improvement through automation Automation doesnt matter a lot but to some extent it contributes towards productivity and improvement. Iceland also increases productivity through automation. Total spending on R&D Iceland also give different flavor to their customer for this purpose it all ways doing R&D and take innovation in their fresh juices & Shakes according to customer need.

SWOT Analysis

Strength
Quality Iceland produces good quality products. It cannot compromise on quality. Flavors Iceland provides big range of juices flavor and at that time on any one competitor provide that range of flavor in fresh juices. Iceland provide 30 different flavors to it customer. Location

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Iceland has also place advantage because in Lahore they have their branches in all the major areas

Well-developed strategy Iceland has recognizes need well and establish a good strategy that, there is a right time and right place for their product; therefore, their strategy makes room for adjustments

Weaknesses

Storage ability Iceland has no storage ability for long time

Opportunities

Changing Social Trend Consumers drink fresh juices on a regular basis as they increasingly concentration adopts Western lifestyles, especially the younger generation which is hugely influenced by the Western media. Younger consumers tend to follow Western eating and drinking habits. There was an increase in demand for functional drinks over the review period Health conscious Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice. Both the government and the media have started health awareness campaigns to make Pakistanis realizes that consumption of fruit/ juices is as essential as eating food. Fruit/ juices are doing very well in both urban and rural areas Market growth

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Juices market expands very fast .A new research proves that in future (2012) every person use 85.5 liters juices per years. Limited options in real fruits juices Limited options are in locally produced real fresh fruit juices.

Threats
Increase in competition There is large competition in fresh juices market in Lahore. Low price There are many local fresh juices competitor in Lahore that provide juices at low price, so that customer whose are price conscious they attract in the competitor side. Labor costs Increase labor cost like Pakistan govt. fix minimum employ wages 6000 RS Inflation rate Increase inflation rate very fast .In 2008 expected inflation rate 23.3%.

Porter five forces model

Michael Potter's five forces framework can be used to determine whether the industry is attractive enough to sustain a small or medium size enterprise. The five forces of Entry, Rivalry, Substitutes, Buyers and Suppliers jointly determine the intensity of competition and profit potential for a small and medium size firm in a given industry or market sector. In analyzing each market force, the question is whether it is sufficiently strong to reduce or eliminate

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industry profits. The focus at this stage is at the industry level because industry dynamics and profits of necessity dictate profits of other firms that enter the industry. Also, in carrying out a five forces analysis we want to be able to answer this question: If the competitive forces in the industry are strong, is there some strategy that firms might employ to defend it, or influence the forces in their own favors?

Threat of new entry

The threat of new entrance means when any other company that is not operate in that product category but operate in the other product market or the company that start it new venture see a opportunity in this field like juices and they decided to enter in this market. So the current Fresh juice that is operating in the market has a great threat for the new entrance. New entry can raise the threat of competition. In juices market there is great threat of new entry. Because in last few years many new juices Shops enter in market. There is no major barrier for local juices to enter in market. So many local fresh juices enter in the market. These are some barrier for entering new Entrepreneur in the market. Economies of Scale

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Product Differentiation Capital Requirements Switching Costs Access to Distribution Channels Cost Disadvantages Independent of Scale Government Policy If all these things present in the market then no Entrepreneur want to enter in that market because they know there is no any opportunity for it.

Bargaining power of supplier

The company needs raw material, labors, component and other supplies. These requirement leads to buyers-suppliers relationships between industry and the suppliers. Suppliers, if powerful can exert an influence on the producing industry, such as selling raw materials at high price to capture some of the industry profits. Suppliers have great bargaining power if the company cannot produce its raw materials or other ingredients. Suppliers have weak bargaining powers, if in the market many suppliers and demand of raw material is low. Iceland purchases it raw material direct from market rather than buy from supplier. So Iceland does not face the bargaining power of supplier because they buy direct on low price rather than supplier high price. So Iceland management reduces the bargaining power of supplier in this way to buy direct from fruit market.

Buyer Power

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Bargaining power of customer is one of the important forces in the porter five forces. In the field of juices customer has a low bargaining power because they purchase a single unit and have not in that situation that they can negotiate with seller on price matter. So Iceland customer has low bargaining power. Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, they are often able to dictate terms to you. If there are good competitor then the buyer power also increase because they see both competitor and it switching cost is low. But in the case of Iceland buyer power are not strong because in Lahore no major competitor operates.

Threats of substitutes
Substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a product demand is affected by the price change of a substitute product. A products price elasticity is effected by substitute product as more substitute become available, demand becomes more elastic since customer have more alternative . A close substitute products constrains the ability of firms in an industry to raise prices. While the treat of substitutes typically impact an industry through price competition. If substitution is easy and substitution is viable, then this weakens your power. The substitute product has a strong affect if the following things are occurred Sales of substitutes are growing rapidly Producers of substitutes plan to add new capacity Profits of producers of substitutes are up In juices market Iceland juices has great threat for substitute like Freshers & Jaidi etc.

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Competitive Rivalry
The big factor determining the strength of rivalry is how actively and aggressively are rivals employing the various weapons of competition in jockeying for a stronger market position and seeking bigger sales. In the market rival create a great threat. Many local juices operate in the market like Freshers & Jaidi (Defence)

Recommendation
Focus on the Customer Monitor the Competition Own the Brand. Find & Direct Outside Vendors. Create New Ideas. Communicate Internally. Manage a Budget. Set the Strategy, Plan the Attack, and Execute

Future Plan
Icelands future plan is to open a restaurant that provides comfortable sitting environment & Quality food under one roof. The decor and theme are centered on the cutting edge open kitchen with brick arches and distinctive lighting. Our energy and atmosphere will appeal to families, groups, and schools. The real power and energy of the juice bucks will come from the attentive and courteous service provided by our managers and staff. Our fresh menu will be

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prepared by our motivated kitchen team, and carefully orchestrated to provide the best service to our customers who are our priority. We will have at least one manager on duty at all times. Our hours are Sunday thru Thursday 11 am. To 10 pm. Friday and Saturday 11 am to 11 pm. Takeout available during store hours. Delivery hours are 4 pm to closing every day we are open. We will offer delivery all day on Saturday and Sunday and some holidays.

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