FROZDE

a frozen
dessert
 SALES
and DISTRIBUTION
Strategies

FROZDE ICECREAMS
 Introduction
The ice cream industry in India is worth Rs. 2,000 crores

The industry can be divided into the branded market and the unbranded market. The
branded market at present is 100 million liters per annum valued at Rs. 800 crores

In 2008-09, in the branded ice cream market, Amul held the number one spot, with
a market share or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and
Mother Diary at 8%

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.

The ice cream industry has traditionally grown at a healthy rate of 12% year-on-
year.
Major Players in the
Ice cream Market
 The Ice Cream Market
Break up
Particulars Amt (in Rs)
Total Market size in India = 2000 Crores
Market Size of MP & CG (12.5%) = 250 Crores
38% of Amul = 95 Crores
14% of Kwality = 35 Crores
12% of Vadilal = 30 Crores
8% of Mother Dairy = 20 Crores
6% of Cream Bell = 15 Crores
22% of Others = 55 Crores
 OUR PRODUCT

FROZDE
A Frozen Dessert
 FROZDE Market Share
Frozde would be operating only in the MP & CG Market targeting nearly 5
% of the market.

Our Target Quantity = 14,70,590 liters

Our Target Market Share = Rs. 12.5 Crores

10% of mother dairy 25% of cream bell 12.25% of others

(20 Cr * .1) (15 Cr * .25) (55 Cr * .1225)
2 Crores 3.75 Crores 6.75 Crores

Note: We would try and capture the share of Mother Dairy, Cream Bell and
other players as Amul, Kwality Walls and Vadilal are very well
established names in the market while Frozde is a completely new
product
 DISTRIBUTION CHANNEL
FROZDE

M.P. C.G.

Regional Sales Manager Regional Sales Manager

2 C&F Agent C&F Agent

35 Distributors 15 Distributors

250 Dealers 150 Dealers

Retailers Retailers
 Cost Composition
Particulars Amt (in Rs.)
Manufacturing Cost = 5,14,70,650 (35*1470590)
Selling cost = 32,40,000
Transportation Cost = 88,23,540
Advertising Cost = 50,00,000

Total cost = Rs. 6,85,34,190

 DISTRIBUTION OF
MANUFACTURING COST
Particulars Amt (in Rs.)

 Raw Material = Rs. 30/- liter

 Packaging = Rs. 3/- liter
 Labour = Rs. 2/- liter
Total Manufacturing Cost = Rs. 35/- Kg
= 35* 14,70,590
= Rs. 5,14,70,650
DISTRIBUTION OF SELLING COST
Particulars Amt (in Rs.)

 2 Regional Sales Manager = 14,40,000(2*60000*12)

 3 C&F Agents = 18,00,000 (3*50000*12)

Total Selling Cost = Rs. 32,40,000

 Per liter Distribution
Particulars Amt (in Rs.)

• Manufacturing Cost 35/- liter

•Transportation 6/-liter
•Advertisement 4/-liter

•Cost of production 45/-liter

•Margin over cost(45*26.67%) 12/-liter

•Sale price of manufacturer / Cost price of Distributor 57/-liter

•Margin of distributor (57*12%) 6.8/-liter

•Sale price of distributer/ Cost price of dealer 63.8/-liter

•Margin of dealer (63.8*20%) 12.7/-liter

• Sale price of dealer / Cost price of Retailer 76.5/-liter

•Margin of retailer (76.5*11%) 8.5/-liter
•MRP 85/-liter
 FINANCIAL PROJECTIONS

Particulars Amt (in Rs)

 Targeted Sales = 8,82,35,400

M.P. ( 60%) = 5,29,41,240
C.G. (40%) = 3,52,94,160
 Total Cost = 6,85,34,190
 Total Profit = 1,97,01,210
 An effort by:

Nikita Jain
Neha Rawat
Micky Rawat
Mayank Bhatnagar