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Indian Ice-Cream Industry Analysis

Indian Ice-Cream Industry Analysis. Team Name: Group 10 1 st R ound Room: RAWLS 3095 Grace Dong Olivia Fahnestock Jason Miller Alex Johnson. Main Challenges Grace Dong. Seasonal swing in ice cream sales Overall cost of manufacturing & operations Availability during peak season

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Indian Ice-Cream Industry Analysis

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  1. Indian Ice-Cream Industry Analysis Team Name: Group 10 1stRound Room: RAWLS 3095 Grace Dong Olivia Fahnestock Jason Miller Alex Johnson

  2. Main Challenges Grace Dong • Seasonal swing in ice cream sales • Overall cost of manufacturing & operations • Availability during peak season • Sourcing/procurement • Taxes, custom duties, currency fluctuations • Seasonal ingredients • High price fluctuations

  3. Main Challenges Grace Dong • Inadequate infrastructure • Underdeveloped cold chain • Major retail outlets do not have cold storage capacities • Many other dessert options • Frozen desserts • Competition from dominant local players

  4. Capacity & UtilizationOlivia Fahnestock • Minimizing excess capacity • Merge another manufacturing facility with ‘Just Bake’ • Rent out part of manufacturing facility • Increase utilization • Diversify products with similar raw materials • Innovative product such as chocolate hotpot (fondue) • Ice cream cake • Increase hot beverage production during winter • New product of coffee

  5. Short Term FocusJason Miller • Market Expansion • Take advantage of 15-20% market growth • Ice cream consumption is to grow 100% within 1 year • Indian Government now allows foreign direct investment • Vending carts • Cost Efficiency • Expensive product • Competition from dominant local players • Stabilize supplier relationships further

  6. Long Term FocusJason Miller • Market Expansion • Expand ‘Just Sundaes’ in collaboration with ‘Just Bake’ • Add and diversify products • Open more stores to increase utilization • Cost Efficiency • Supply chain transportation for new stores • Inadequate infrastructure

  7. Analysis Grace Dong

  8. Analysis Grace Dong

  9. Recommendations Alex Johnson • Take advantage of seasonal demand • Weeks 23-37 • Increase store capacity • Increase by 5% • Temporary mini fridge • Use 5S principles to reorganize stores • Restock twice per week • Utilize short distance between manufacturing facility and stores • Short lead time makes this feasible

  10. Results Alex Johnson • Implement Common Service Level Policy • Increased capacity allows Geddy’s to stock all the products needed to meet target in-stock levels • Return of 5% increase in profit per 52 weeks

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