Brand Management and Analysis of Bellissimo Premium Ice Cream

BUILDING BRAND EQUITY OF BELLISSIMO PREMIUM ICE CREAM

Prepared for:

Mr. Khaled Mahmud Course Instructor: M406 Brand Management Assistant Professor Institute of Business Administration, University of Dhaka

Prepared by:

Rehanul Islam ZR-27 Shabab Mashuk ZR-47  Noushin Wadud Khan RH-58 Sajeed Alam ZR-60 Group: 05, BBA Batch 20, Section A

Institute of Business Administration, University of Dhaka, Dhaka May 15, 2015

May 15, 2015

Assistant Professor Khaled Mahmud Course Instructor: M406 Brand Management Institute of Business Administration, University of Dhaka

Honorable Professor,

As commissioned on April 13, 2015 under the Term Paper segment of your course curriculum, we are submitting the attached report titled  Building Brand Equity of Bellissimo Premium Ice Cream.  Cream.   The major areas of analysis in our report include: •

A basic overview of the ice cream industry of Bangladesh

•

Analysis of the Bellissimo Brand, its offerings, distribution, sales, promotion and marketing activities

•

Analysis of branding elements, brand DNA and brand mantra of Bellissimo using relevant theoretical models with practical insight

•

Proposals and recommendations for building brand equity via branding element modifications, effective positioning strategies and marketing activities

In completion of this term paper, we would like to thank you for the opportunity to work on this topic as it has helped us strengthen our theoretical concepts of brand management by practical experience and insight. This knowledge development process would not have been possible without your direction. Thank you once again for the opportunity.

Sincerely,

 ____________  _________ ___

_____________ ________ _____

_________________ ________ __________ _

__________ _________ _

Rehanul Islam

Shabab Mashuk

Noushin Wadud Khan

Sajeed Alam

ZR-27

ZR-47

RH-58

ZR-60

Enclosure: Building Enclosure:  Building Brand Bra nd Equity of Belli ssimo Premium Premiu m Ice Cream

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ACKNOWLEDGEMENTS We would like to thank the following individuals for their time, support and valuable insight into the  preparation of this report:

Mr. Salman Quader

Head of Brand Development, Bellissimo, Kazi Food Industries Ltd

Mr. Asif Iqbal

Sales Manager – Dhaka Region, Bellissimo, Kazi Food Industries Ltd

Mr. Sopu Rahman

Analyst, Nielsen Bangladesh Ltd

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TABLE OF CONTENTS Page No. 1. INTRODUCTION

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1.1 Overview

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1.2 Objectives

1

1.2.1 Broad objective

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1.2.2 Specific objectives

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1.3 Rationale

1

1.4 Methodology

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1.5 Scope

2

1.6 Limitations

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2. LITERATURE REVIEW

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3. INDUSTRY OVERVIEW

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3.1 Background of Bangladesh Ice Cream Industry

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3.2 Market horizon

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4. BELLISSIMO PREMIUM ICE CREAM – THE COMPANY

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4.1 Background

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4.2 Company overview

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4.3 Core values and objectives

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5. BELLISSIMO PREMIUM ICE CREAM – THE BRAND

5.1 Brand analysis using the four Ps

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5.2 Brand elements and equity

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5.3 Consumer behavior and analysis

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5.4 Brand analysis using theoretical models and Consumer-based Brand Equity

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analysis 6. COMPETITORS’ LANDSCAPE

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6.1 Ice cream market segmentation

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6.2 Competitor matrix

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7. BRIDING THE GAP BETWEEN CURRENT AND EXPECTED EQUITY

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7.1 Gap analysis

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7.2 Strategy implementation

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8. CONCLUSION

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REFERENCES

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EXECUTIVE SUMMARY

The ice cream industry of Bangladesh dates back to the East Pakistan era of the 1950s, since when it has developed into a BDT 500 crore industry with a saturated market of highly competitive players. Bellissimo Premium Ice Cream entered the market as a disruption, as the brand opted to offer premium ice cream at an affordable price range in regular servings. Since this market segment was previously dominated by foreign brands, which charged exorbitant amounts, Bellissimo’s entry strategy was sound and logical. However, the company heavily engaged in marketing communications via ATL channels (TVCs, billboards, radio commercials) and investments in event sponsorships ranging from cultural events, a Bangladesh Cricket Team series against New Zealand, to university events and underground football tournaments. All of this heavily damaged the brand’s core DNA, which was associated with a  premium brand providing a high value offering. Another problem with the brand was customer dissatisfaction with the bland taste of Bellissimo Ice Cream. All of that significantly harmed brand equity. This was readily observable by consumer survey statistics which indicated that while 94% of respondents knew about the Bellissimo brand (thanks to its extensive marketing efforts), only 26% had tasted it (which was reflected in the brand’s poor positioning, pricing and most importantly, taste).

Based on the above challenges, the report analyzed the brand using several models, namely: the four Ps of marketing, Philip Kotler’s brand value model, and to understand consumer percep tion, the consumer based brand equity model. It further analyzed Bellissimo’s competitor s in terms of their points of parity and points of difference to highlight the core features of the Bellissimo brand which included its high value offering and unique products (strengths) and, unfortunately, its poor positioning, disoriented marketing efforts and weak product taste. However, consistently, consumers identified Bellissimo’s  packaging as superior and appealing.

To develop the brand’s equity, short-term and long-term strategies have been proposed. Short-term strategies focus on a defensive strategy to leverage Bellissimo’s position as a premium brand and to focus on targeted promotional activities, associations and partnerships that enable consumers to connect Bellissimo the premium brand, with other premium brands and events, such as associations with corporates, cultural institutes and universities. Long-term strategies focus on attacking the competition and capturing market share by capitalizing on the brand’s strength of packaging and enhancing it to give it a more premium appeal and, brand extension to incorporate more premium flavors. Ultimately, for all brands, the core component of success is not the extent to which it is communicated to the consumer. It is the value that the brand offers and how the value relates to the consumer’s perception. This deliverability of values requires constant understanding of consumer perception, behavior and

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trend projections which, aligned with the strategies proposed, will hopefully ensure the brand deliverables of Bellissimo Premium Ice Cream are brought to fruition.

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1. INTRODUCTION

1.1 Overview 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 a BDT 500 crore industry. Increasing income and consequently living standar ds, along with prolonged exposure to global influences have fueled growth and developed a huge consumer base. This has also led to an emergence of a lot of market players who continue to offer competitive product offerings and engage in marketing efforts. Bellissimo Premium Ice Cream was launched in 2013 as an industry disruption. Premium 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 weak brand equity as the ice cream industry is yet to fully adapt to a premium offering for regular customers. However, Bellissimo’s entrance also caused retaliation among other industry players with Igloo launching its own  premium range, Mi Amore. This shows that Bellissimo has a competitive market offering which has followed some disoriented marketing and branding strategies so far. The report aims to explore these activities and provide insight into more cohesive strategies to build brand equity for Bellissimo Premium Ice Cream.

1.2 Objectives 1.2.1 Broad objective The broad objective of the report is to extensively analyze the current brand positioning of Bellissimo Premium Ice Cream and identify strategies and opportunities to build and leverage brand equity.

1.2.2 Specific objectives The specific objectives include: •

Analysis of market offering of Bellissimo in terms of the four Ps

•

Consumer survey and identification of perception of the Bellissimo brand

•

Identification of gaps in branding

•

Proposals and strategies for bridging gap to build brand equity

1.3 Rationale Given the sheer size of the ice cream industry of Bangladesh, companies enjoy a financially feasible standing in the market. However, in spite of extensive marketing efforts from Bellissimo since its inception, the brand struggles to gain sufficient equity in return for marketing investment. As a result, the report seeks to identify the gaps in marketing and propose solutions to help Bellissimo match its marketing efforts with subsequent gains in equity.

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1.4 Methodology The report has been developed from both primary and secondary sources, along with consumer surveys for better insight. Primary sources include interviews from Bellissimo representati ves involved in Brand Development and Marketing along with company reports. Secondary sources include published reports on Bellissimo’s brand position, studies of global premium ice cream brands like Häagen-Dazs and market studies to analyze the market and gain an understanding of the Bellissimo brand.

1.5 Scope The scope of this report pertains to Dhaka based citizens as consumer surveys and insight were developed based on those. Furthermore, given the sheer consumption of ice cream heavily centralized around Dhaka, branding proposals and suggestions cater mostly to Dhaka and other urban areas in the country.

1.6 Limitations In spite of efforts to provide comprehensive coverage, the report could not cover an adequate consumer  base for the survey. Perhaps a bigger sample size could have yielded a more accurate consumer insight.

2. LITERATURE REVIEW

The food sector in Bangladesh has transformed drastically in the last few years. A market that was  primarily dominated by a few national brands is now an open field for both new national and international brands. The highly competitive market has made it necessary for brand building to strengthen the company’s position in the market. Improved socioeconomic conditions, foreign influence and changing tastes have all allowed premium brands to emerge in this sector. In the race to build a  brand many companies overlook the core concepts related to what a brand is and what makes a successful brand. Many even confuse between branding and marketing. James Heaton, President and Creative Director of Tronvig Group, says, “ Marketing unearths and activates buyers. Branding makes loyal customers, advocates, even evangelists out of those who buy .”1  He also mentions that the fundamental difference lie in how the two operate. As per his article “The Difference between Marketing and Branding”, marketing employs a push strategy while branding uses a pull strategy. In order for successful branding one must understand what a brand is. According to the American Marketing Association a brand is a name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. On the other

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hand, a successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely (Chernatony and McDonald, 1998).2 In his book “Strategic Brand Management” Kevin Keller identifies the different elements that make up a brand. Among these the most prominent ones are the names, URLs, logos, symbols, characters, packaging, and slogans. In addition he identifies memorability, meaningfulness, likability, transferability, adaptability and protect-ability as the six important criteria for choosing brand elements. 3 It is important to pay attention while choosing brand elements because each element in some way is a representation of the brand, and it is important that each make a positive contribution to the brand equity. Brand equity is defined as the value that consumers associate with a  brand (Aaker 1991). 4 It is the consumers’ perception of the overall superiority of a product carrying that  brand name when compared to other brands. Therefore a brand must be perceived as different in order to win market share (Romaniuk et al., 2007). 5 Undifferentiated new entrants are supposed to be most likely to fail because no customers should be motivated to buy them (Davidson, 1976). 6 In order to be a premium brand one must be positioned as such. Strong brands start with differentiation, understanding and building how it is they are different from the competition. Phau and Prendergast (2000) suggest that luxury brands are those that imply exclusivity, have a strong brand identity, have high brand awareness, and are perceived to be high quality. 7 Others have defined luxury products as those which ratio of functionality to price is low but which ratio of intangible and situational utility to price is high (Nueno and Quelch 1998). 8 Although  premium signifies high end or luxury, the ways to develop premium produ cts are not clearly articulated anywhere. One description of luxury products is as those providing extra pleasure and flattering all senses at once (Kapferer, 1997) 9, for which psychological benefits, rather than functional benefits, are the main factor (Vigneron and Johnson, 2004). 10 Looking at it this way it is clear that motivation for  buying luxury products differs from person to person. ‘Luxury’ has become a more truly global market hitherto showing strong growth in 2010 and is poised for further expansion (Bain & Company, 2011). 11 If we look at luxury or premium branding around the world we find that successful branding involves many dimensions. Brands are not products and should therefore be treated differently. 12 The brand helps to give identity to the product and this identity is the  base on which perceptions and associations are formed in the minds of the consumers. Looking at the case of Rolls Royce it is easy to see that although everyone is familiar with the brand and what it does there are only a few that can say they own one. Looking at other brands around the world we see that over time brands have not only maintained their exclusivity but they have grown with the market and managed themselves so as to create sustainable brand equity. Atwal & Williams (2009) insists that in case of luxury branding it is not communication that we are looking for but connection with the customers that is our main goal. 13 It is this connection, backed up by the delivery of the brand promise that has helped brands transform from just another name into a name that signifies true luxury.

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In Bangladesh brand labels has always been a factor in consumer buying patterns. From clothing to furnishings brands have played a big role in the past and still continue to do so today.

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 In case of food

 products premium branding involves a lot more than just premium prices. Research on branding in food sector showed that “food quality is a matter of consumer perception, or more specifically consumer acceptance" (Cardello, 1995). 15  The consumer perceives quality as a combination of experiences, specially the first impression when being in contact with the product. In the food industry perceptions about the quality of a product can only be formed after tasting the product. 16 Take into account how the  palette of people differ and it is clear that branding food products is more challenging than many others. A research on instant foods undertaken in Bangladesh it was found that in case of food products consumers give value taste, quality, packaging, advertisement and price in order. 17 So we can see that simply pricing products as premium is not going to work. The price in fact, has to be backed up by superior taste, quality as well as packaging.

3. INDUSTRY OVERVIEW 3.1 Background of the Ice Cream Industry of Bangladesh Globally, ice cream ranks among the top 10 treats or snacks to consume, for people of all ages and walks of life. In 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”. Full-fledged operations were incepted by West Pakistan based K. Rahman & Company, which acquired business licenses for the 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 acquired ownership of both Coca-Co la and Igloo Ice Cream. Given the nascent nature of the government and administrative failures, the ventures failed.

In 1982, Abdul Monem Ltd won the government tender as the highest bidder and subsequen tly acquired Igloo Ice Cream. The main factory was established in Comilla. After years of enjoying market benefits as a monopoly, the early 90’s so the emergence of Polar, an ice cream brand from Dhaka Beverage Industries. With their superior quality, innovation and effective marketing strategy, Polar soon took over as the market leader with Igloo trailing. To compete with Polar, Igloo stopped its antique packaging and started Pearl BOPP packaging like that of Polar. The brand wars between Ig loo and Polar continued, with Polar introducing products such as: Crunch, Penguin and Rocks. Igloo countered them by introducing Macho and Mega and later, Single Sundae.

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Igloo came out as the winner of the brand war and Polar started experiencing a significant drop in market share. In 2006, the brand ‘Polar’ was pulled out of the market and new players like Kwality emerged. But Igloo remained dominant and brand grew tremendo usly. Other brands like Kwality, Savoy etc. were present in the market but had been able to capture a very insignificant amoun t of market share. Only the market for Igloo significantly expanded. In 2009, the brand ‘Polar’ reemerged under the umbrella of Urban Development. Alongside, some multinational ice cream brands like Mövenpick, Baskin Robbins and Cream & Fudge introduced ice cream parlors in Bangladesh. With this, a new dimension in the local ice cream industry was created called Bo utique ice cream shops. These ice cream  parlors targeted the upper-middle class and tried to cater to the emotional appeal of the cons umers who up until then could not find any foreign ice cream brands in Bangladesh.

In January 2013, another new player named Bellissimo Premium Ice cream emerged in this alreadycompetitive industry. Bellissimo 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 (DITF) 2013. The emergence of Bellissimo created a disruption in the industry as earlier, ice cream flavors and varities in the market were limited to generic variants. Premium ice cream with flavors and ingredients like dark chocolate, hazel nuts etc. were available at Boutique Parlors from foreign brands. Bellissimo introduced premium quality ice creams available in general servings, following the business models of Häagen-Dazs. This created a new market segment for premium ice cream with Igloo following up with Mi Amore, its own range of premium ice cream. Furthermore, Bellissimo and Mi Amore opened up their own boutique ice cream parlors to compete with international ice cream parlors.

In the upcoming year, the industry will see a few new players like: Pran, Golden Harvest, Cold Stone Creamery etc. Needless to say, the industry has been growing and is currently estimated at BDT 500 crore. Given the product line diversification, the emergence of more players and stiff competition, it is only projected to grow further.

3.2 Market horizon The ice cream industry comprises the following major brands: Igloo, Polar, Kwality, Bellissimo, Savoy and Mi Amore. The respective market shares of these companies include:

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Market share Others Bellissimo 5% 6%

Kwality 14%

Igloo 41%

Polar 34%

Igloo

Polar

Kwality

Bellissimo

Others

Figure 1 Market shares of ice cream companies

Table 1 Market shares of ice cream companies

Brand

Market Share (In BDT.)

Market Share (In Percentage)

Igloo

205 crores

41 %

Polar

170 crores

34 %

Kwality

70 crores

14 %

Bellissimo

28 crores

5.6 %

Others

27 crores

5.4%

Total

500 crores

100 %

There are also upcoming ice cream brands from Golden Harvest, Pran, Nestle and Cold Stone Creamery.

4. BELLISSIMO PREMIUM ICE CREAM – THE COMPANY 4.1 Background: Introducing premium ice cream in regular offerings After the introduction of boutique ice-cream parlors all over Bangladesh, the top management of Kazi Food Industries Ltd started thinking about introducing a premium ice cream brand that would cater to the upper-middle (SEC A) and upper class (SEC A++) consumers. The logic behind this was that if the

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consumers can afford the expensive ice cream parlors, they would also be interested in premium quality ice cream brands only if the brand was able to deliver international quality product, which would rival the expensive ice creams of the boutique ice cream parlors. Based on this idea, Bellissimo Ice cream was launched in early 2013. It is the first brand to produce premium quality ice cream in Bangladesh and was first launched at the Dhaka International Trade Fair (DITF) 2013 with great success.

4.2 Company overview: Delivering a premium offering The primary objective of Bellissimo ice cream is to deliver ice cream products of international standard. It strives to produce dense, rich, creamy and flavorful ice cream using real milk fat, natural ingredients and fruit particles. Bellissimo uses different flavors and textures, making it the only local brand with so many varieties to offer its customers. The company strictly follows the international standard of ice cream production with natural flavors and no additional colors. Raw materials and machines of highest quality are used for production.

The most important criteria for an ice cream of international standard is for it to have minimum 10% milk fat/milk cream/ butter fat. Bellissimo is the only local ice cream producer to bring real ice cream to its consumers with 10% milk fat and more at an affordable price.

Initially, Bellissimo introduced 4 categories of ice cream in the form of cups, cones, bars and ice cream sandwiches. The 100ml cups are available in ten flavors and 500ml tubs in six flavors. The cones are called Perfetto and come in three different flavors. Ther e are two types of ice cream bars called Supremo and Primo. Supremo comes in three different flavors while the Primo is available in one flavor only. The most unique product of Bellissimo is the ice cream sandwich called Biscotto, which comes in two flavors – vanilla and chocolate. Bellissimo is the first company to introduce ice cream sandwich in the local market.

The target consumers of Bellissimo are from the upper and upper-middle class society who are regular consumers of ice cream and are willing to pay a premium price for a premium product.

These

consumers mostly live in urban metropolitan locales of Dhaka, Chittagong, Comilla, Sylhet, Khulna, Bogra and shop from superstores or A-category departmental stores.

With a 5%-6% market share already by the first year in the ice cream industry, Bellissimo can only go further with its quality product and effective business strategy.

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4.3 Core values and objectives 4.3.1 Corporate Mission - To be the leading ice cream brand in Bangladesh

4.3.2 Vision - To provide international quality ice cream products to the consumers with a wide range

of new and exciting flavors

4.3.3 Core values – The core values of the Bellissimo brand include: •

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

•

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

4.3.4 Core responsibility •

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

•

Create brand awareness and top of the mind recall

•

Maintain premium positioning of the brand through communications & activities

5. BELLISSIMO PREMIUM ICE CREAM – THE BRAND 5.1 Brand analysis using the Four Ps 5.1.1 Product range and Pricing Bellissimo has an extensive product range, which can be categorized in terms of the serving packages:

i. 100 ml cups: Category- 1 (Taka 40)

Category-2 (Taka-50)

Premium Chocolate

Mint Chocolate Chip

Premium Vanilla

Cherry Chocolate Chip

Premium Strawberry

 Nutty Almond

Premium Mango

 Nutty Pistachio Butter Chocolate Almond Banana Chocolate Walnut

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ii. 500 ml tubs Category- 1 (Taka-150)

Category-2 (Taka-175)

Premium Chocolate

Mint Chocolate Chip

Premium Vanilla

Cherry Chocolate Chip

Premium Strawberry

 Nutty Almond

Premium Mango

 Nutty Pistachio Butter Chocolate Almond Banana Chocolate Walnut

iii. 1 liter tubs: Category-1 (Taka-295)

Category-2 (Taka-345)

Premium Chocolate

 Nutty Pistachio

Premium Vanilla Premium Strawberry Premium Mango

iv. Ice cream Bar with stick: Category-1 (Taka- 70)

Category-2 (Taka- 35)

Category-3 (Taka 50-)

Supremo (102 ml)

Primo (70 ml)

Supremo Nano (45 ml)

- Strawberry

- Vanilla

- Vanilla

- Chocolate

-Chocolate

- Vanilla

-Strawberry

- Almond

v. Cone: Cone- (Taka-70)

Perfetto (121 ml) - Chocolate - Strawberry - Vanilla

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vi. Ice cream sandwich: Sandwich-(Taka-30)

Biscotto (54 ml) - Chocolate -Vanilla -Mint -Strawberry

Bellissimo plans to launch more products to extend its Supremo and Biscotto range. They are as follows: 1) Supremo – new white chocolate coating 2) Chocoholic Biscotto – chocolate biscuit with chocolate ice cream 3) 500ml tubs – new flavors 4) 1000ml tubs – new flavors 5) Ice Cream Cake 6) Log Ice Cream 7) Sorbet

5.1.2 Place – production, sales and distribution channels Bellissimo ice creams are now available in all retail outlets, departmental stores, small-scale stores and all outlets with available freezers. Quantities are set as per market study, consumer segmentation and forecasting.

5.1.2.1 Production

The ice cream production plant of Bellissimo has a capacity of between 28000 and 30000 liters, while it actually produces 4000 to 5000 liters. This indicates underutilization of the plant. In order to fully utilize the plant capacity, Kazi Farms is launching officially another brand of ice cream called Za n’ Zee very soon.

5.1.2.2 Distribution

The organizational hierarchy of Bellissimo Sales department is given below:

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Head of Sales  National Sales Manager 

Regional Sales Manager 

Area Sales Manager 

Area Sales Executive

Distributors/Dealers/Sales Representatives Figure 2. Sales department hierarchy of Bellissimo

In the case of distribution, Bellissimo has 6 depots for 6 regions in the whole country to ensure nationwide distribution. These are in Dhaka, Chittagong, Comilla, Sylhet, Bogra and Khulna. Depending on the size, each region is divided into several areas. There is a Regional Sales Manager (RSM) in each region and under the supervision of each RSM there is an Area Sales Managers (ASM) assigned in each area. Again for each ASM, there are Area Sales Executives (ASE) who directly monitor the sales and distribution. For distribution, Bellissimo follows the indirect system which is essentially area based. Hence, a number of Petty dealers work under each ASE for the supply of ice cream to retail stores. They are small area dealers. They are given 2 ice cream carrier vans and 2-3 freezes assuring the storage of 1200 liters in an average.

The payment system and delivery is fluent and easy to track. Firstly, the distributo r pays the due amount to the bank. Getting confirmation from the bank, ASE informs to the depot to deliver the ordered quantity of ice cream to the distributor. ASE delivers ice creams to a distributor in following alternate days i.e. either Saturday and Tuesday or Sunday and Wednesday or Monday and Thursday.

Via a nationwide distribution network, Bellissimo has covered the major districts of Bangladesh. Current area coverage by Bellissimo are- Dhaka, Chittagong, Sylhet, Comilla, Bogra, Rajshahi, Dinajpur, Rangpur, Barisal, Khulna, Jessore. Also they have done extremely well in terms of freezer  placement. Currently, there are approximately 3300 freezers in the market and the target is to install 6000 freezers by May 2014.

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However, it has been seen that the larger cities have been more welcoming of Bellissimo products. In Dhaka and Chittagong, there are super stores, chain shops and restaurants who are also the company’s major consumers such as Agora, Meenabazaar, Swapno, Lavender, CSD, Dhali etc.

5.1.3 Promotion – existing marketing activities The Bellissimo brand, since its inception has been heavily involved in promotion and marketing activities, albeit the efforts do not justify the frailing brand equity. These existing activities include:

i. Event engagements and sponsorships: •

Grand launch of Bellissimo Ice Cream at DITF 2013

Figure 3. Bellissimo at DITF 2013

•

Premium ice cream partner at the Durga Puja Festival on Banani Field in 2013 and 2014

•

Official ice cream partner of the Sahara Cup Bangladesh-New Zealand Bilateral Cricket Series in 2013 where it had exclusive ice cream selling rights within the stadium premises

Figure 4. Sahara Cup Bangladesh vs New Zealand 2013 •

Title Sponsor of “Very Graphic” – a graphic art exhibition held at Bengal Art Gallery

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•

Platinum Sponsor and exclusive ice cream partner of Hay Festival 2013 and 2014

Figure 5. Bellissimo Promotion for Hay Festival 2014

•

Platinum Sponsor and ice cream partner at Digital Marketing Summit 2015 organized by Bangladesh Brand Forum

•

Premium Sponsor and Ice Cream Partner at 7TEEN Futsal Dugout 2014, 7TEEN Interuniversity Futsal Tournament, MUSICON 2013

•

Exclusive ice cream partner at Bengal Classical Music Festival 2014

Figure 6. Event banner for Bengal Classical Music Festival Bangladesh 2014

•

Exclusive Ice Cream Partner for Rocknation I, II and III

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•

Sponsor of artist Nitandya Gain’s Printmaking exhibition at Alliance Fraincaise de Dacca

Figure 7. Event banner for Printmaking Exhibition

ii. Activation: •

University ice cream outlets during events such as North South University Career Fair 2013, 2014, East West University, IBA, DU during annual Fresherz and graduation events

•

Exclusive ice cream partner of IBA, DU Graduation 2014 and 2015

•

Exclusive ice cream partner of UNYSAB Model United Nations Program 2014

iii. Sales promotion and advertising: •

DITF 2013 with its extensive outlet, stands, print media outlets

•

Billboards and point-of-sales materials: !

Approximately 12 billboards strategically located in prime locations in Dhaka  and 2 billboards in Chittagong

!

POS materials include Roman banners, X-stands, product cut-outs, logo stickers, retail posters, leaflets and flyers

•

An integrated marketing communications approach launched in June 2014 with a press release followed by billboards, radio commercials and POSM

•

TVCs launched in December 2013

•

A dedicated and fully informative and functional website

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Figure 8. Bellissimo website

•

Strong presence in social media since inception with an active Facebook page along with frequent seasonal online contests such as Mother’s Day contests

Figure 9. Social media activities for Bangladesh win over Pakistan in 2015

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Figure 10. Social media activities for Mother’s Day 2015 by Bellissimo

5.2 Brand elements and Equity Analysis of the Bellissimo brand requires understanding and subsequent analysis of the individual components, which make up the brand. These include: i. Logo:

The logo is simple, minimalistic and elegant  which is in line with the Bellisimo’s positioning as a premium ice cream brand.

In terms of the color scheme, the logo is also elegant and perfectly devised with two-tone multiple gradient color

schemes which reflects the basic color scheme of ice cream (biscuit colored cone with a delicious exquisite chocolate).

Figure 11. Bellissimo Logo

ii. Tagline:  The brand has no particular tagline which is acceptable for consumer food products,

 particularly ice cream, as the unique selling proposition of ice cream is always the combination of taste, packaging, visual delight and a complete 5-senses experience of vision, touch, taste, smell and sound. It requires no direct highlighting via a tagline as to what the product has to offer.

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iii. Packaging:

In terms of packaging, Bellissimo introduced slightly differentiated packaging for tubs or litre boxes to add to the premium appeal of the brand. It replicated designs from Movenpick and HaagenDazs. Furthermore, regular sized portions such as ice cream bars have elegant typography and color schemes to leverage the premium brand association.

Figure 12. Bellissimo Product Packaging

iii. Endorsement: Bellisimo has no celebrity endorsements as of that. This is a relatively positive

approach as the brand is yet to establish itself in the market properly. Investing in a celebrity endorsement at such an early stage, that too for a product which is highly experience centric, is not feasible.

iv. Brand equity: In terms of brand equity, Bellissimo’s market position is frail. Although, it has

heavily engaged in all the right communication channels, customer retention in terms of sales is poor as the brand is yet to successfully leverage its premium offering. However, the brand’s emergence has been a market disruption. Given that there was no other local premium ice cream brand in the market, the brand was set to enjoy a monopolistic position in this market sub-segment of ice cream, i.e. premium ice cream in regular offerings. However, local customers are unaware of this segment

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and are yet to generate value. Yet still, defensive strategies from Igloo with its own premium subbrand Mi Amore, shows the sheer potential of Bellissimo as a premium ice cream brand.

v. SWOT Analysis of the Brand: Strengths

Weakness

1. Bellissimo can provide the highest quality of

1. Some consumer segments perceive the products

ice cream products available in the local market.

as overpriced. Some of the target customers still  prefer Igloo as a more “value for money” product.

2. The number of varieties of ice cream flavors that Bellissimo can is unmatched and currently,

2. Certain amount of negative feedback.

no other local brands are unable to do so. 3. Slow movement of some star products like: 3. Superstore leadership has already been

Supremo.

achieved.

4. Attractive and standout promotional activity such as: billboards and banners.

5. Biscotto has been very well accepted in most areas and can be perceived as the flagship  product.

Opportunities

Threats

1. The ice cream industry is growing because of

1. More competitors: local and foreign brands

high demand and increasing buying power of

alike such as: Golden Harvest, Pran etc. are

consumers.

entering in an already high-competitive market.

2. The upcoming new products can further help

2. Existing competitors such as: Igloo are trying

Bellissimo to capture more market share.

to tap into the premium segment and compete directly with Bellissimo.

3. Expansion of sales and distribution network such as: injection of retail freezers, Café

3. Product price may be a cause for concern if

Bellissimo outlet etc. should help Bellissimo to

other brands try to capture the premium segment

further firmly establishes itself in the industry.

with relatively lower price.

18

4. Innovative and exciting trade and consumer  promotions as w ell as event activities in educational institutions and entertainment venues should be excellent for consumer awareness.

5. Digital promotion over Facebook should help Bellissimo to comfortably stay in its target consumers’ minds.

5.3 Consumer behavior and analysis 5.3.1 Existing market segmentation i. Geographic Segmentation •

People living in urban metropolitan locales of Dhaka, Chittagong, Comilla, Sylhet, Khulna, Bogra.

ii. Demographic Segmentation •

The ideal consumer of the brand Bellissimo is a young adult of the upper and upper-middle class family.

•

Even

though

highly

targeted

age-specific

products

have

not

yet

been

designed,

school/college/university students are generally the ideal customers for the impulse products (sticks, cones, sandwiches and 100ml cups). •

A slightly elderly group is a better target for the home consumption products such as tubs and liters.

iii. Behavioral Segmentation •

People shopping from superstores or A-category departmental stores.

•

Regular consumer of ice cream and other indulgent products and is willing to pay a premium to satiate his/her needs.

•

Generally active on the Internet and avid users of Facebook and other popular social media such as twitter, YouTube etc.

•

Subscribers of lifestyle magazines and mostly users of the Internet to gather information about  products.

•

Reliance on peer reviews for purchase decisions.

19

•

The lifestyle of the target consumers also reflect their aspiration sides – visiting malls regu larly, travelling, watching movies at high quality movie theatres, using smart phones, celebrating various special occasions with aplomb etc.

iv. Income Segmentation •

The average family income of these consumers generally starts from Tk. 50,000 per month.

5.3.2 Consumer perception about the Bellissimo Brand In spite of increasing marketing efforts in the right communication channels, Bellissimo is yet to establish itself in the market. A survey conducted on the brand’s perception among the consumers (a sample size of 82 respondents based in Dhaka city) yielded the following results: i.

Brand familiarity and awareness: 94% of the respondents claimed that they knew the Bellissimo brand. When asked as to how they gained knowledge of the brand’s existence,

they indicated the following sources: Table 2. Survey responses for knowledge on Bellissimo Brand

Sources

2% 3% 1%

Billboards and print media

18%

TVC Word of mouth

44%

Retail outlets Event activation 32%

Other 

Sources Billboards and print media

2.80%

TVC

1.20%

Word of mouth

18%

Retail outlets

32%

Event activation

44%

Other

2%

20

The above trend indicates that most of the brand’s efforts have been through its countless event activations. However, given the wide variety of events (starting from classical music events, art exhibitions and conferences, to national cricket tournaments and university level events), the brand’s identity has been massively diluted.

ii.

Bellissimo offering (taste, appeal, value for money): Only 26% of respond ents claimed that they tasted ice creams from Bellissimo. Out of these 26%,  a mere 32% claimed that they wanted to try the ice cream again. This indicates a relatively weak strength of

the brand in terms of its flavor. A 5-point rating scale was developed with 5 being excellent and 1 being poor to assess the following factors and the scores were then averaged to yield:

Table 3. Survey responses rating factors of Bellissimo products in general

Score Taste

3.1

Appeal (packaging)

3.9

Variety

4.4

Price

2.7

Value for money

3.0

The above factors indicate that consumers experience relatively high dissatisfaction in terms of the overall price of Bellissimo products and their tastes. Most consumers often describe Bellissimo ice creams as bland and lacking flavor and they do not find justification of a premium price for a premium offering with mediocre taste and experience. The strengths, however, are the brand’s visual and sensory appeal in terms of packaging.

5.4 Brand analysis using theoretical models and Consumer-based Brand Equity analysis 5.4.1 Brand DNA Analysis The brand DNA of Bellissimo consists of the following components: •

A high-value, high-quality offering

•

High-quality ingredient sourcing (with greater milk percentage than any other brand)

•

A premium offering that justifies paying a premium

•

A strategic fit between consumer value and price

5.4.2 Brand value analysis using Philip Kotler’s Concept of Brand Value As per theoretical implications from marketing guru Philip Kotler, a brand’s value can be calculated as follows:

21

!"#$% '#()* +

!*$*,-. /01.

Benefit consists of the following components: •

Functional benefit (product attributes, features, taste, smell and other tangibles)

•

Emotional benefit (intangible gains from product consumption)

Costs consist of the following components: •

•

Monetary costs (pricing)  Non-monetary costs (time, risk and effort)

Value addition opportunities lie in reducing non-monetary costs and increasing emotional benefits. In the case of Bellissimo, the following opportunities for value addition exist: •

Functional benefit – improve product taste, enhance flavor content, introduce varieties

•

Emotional benefit – currently product packaging provides a premium appeal but enhancing  packaging in line with flavor and taste and add to greater emotional benefit

•

Monetary cost – align functional benefits with existing pricing strategies to ensure strategic fit in value addition

•

 Non-monetary cost – increase product availability in retail outlets

5.4.3 Consumer-based brand equity analysis of Bellissimo Premium Ice Cream

Resonance

Judgments | Feelings

Performance | Imagery

Salience

22

i. Brand identity – Salience: •

Given the extensive market coverage through its event sponsorships and marketing communications via billboards and TVCs, consumers are aware that Bellissimo is a premium ice cream brand

ii. Brand Meaning – Performance, Imagery: •

Performance – Bellissimo’s bland tasting products lead to its weak equity. As a result, customers fail to justify the higher price and associate the value derived from a supposed  premium offering.

•

Imagery – As supplemented by consumer survey results, the visual appeal of Bellissimo  products is strong and the packaging adds to the premium appeal and the aesthetic aspect of consumer-based brand equity

iii. Brand response – Judgments, Feelings: •

Judgments – consumers judge Bellissimo as “just another ice cream brand with a relatively higher price.” This is a significantly negative brand association, which results in the brand’s

weak equity. •

Feelings – like the judgment aspect, consumers are yet to feel the experience of consuming a local premium product like Bellissimo.

iv. Relationships – Resonance: •

Given Bellissimo’s diluted brand presence as just another ice cream brand in an already saturated market, it fails to miss the mark on its premium offering. As a result, consumers associate the brand as having been an event sponsor as the brand readily sponsors almost each and every event.

6. COMPETITORS’ LANDSCAPE

6.1 Ice cream market segmentation The ice cream market in Bangladesh can be subdivided into the following categories: •

Regular offerings –   cone, cup and box offerings for regular consumption. Brands competing

include Igloo, Polar, Kwality etc. •

Premium ice cream –   slightly higher priced ice cream with premium flavors and offerings.

Bellissimo competes in this bracket against Mi Amore and foreign brands like Movenpick.

23

Ice cream parlors – These include designated outlets with seating arrangements, offering

•

 premium ice cream and complementary products like cold beverages and baked items. Bellissimo Café was established as a new entrant in this segment along with the likes of Movenpick and Mi Amore Parlor.

6.2 Competition matrix The following matrix identifies Bellissimo’s competition along with its shortcomings and points of difference: Table 4. Competitor Matrix in the Ice Cream Industry

Brand

Industry standard (Points of

Brand offering

Parity)

(Strength and Points of

Shortcomings

Difference) Igloo

•

•

Health inspection

which automatically

flavors (Hazelnut,

food testing

leads to consumers

Fruit and nut

authorities

associating ice cream

variants, Caramel)

Standard packaging

with Igloo

flavors •

disposables Common flavors

Lack of product

•

Strong and consistent

•

Standard stick and wrapper for cone and

•

Lack of modern

•

 pass from BSTI and

in plastic polymer •

High brand equity

•

•

innovation Lack of packaging

•

Unique flavor of

innovation

Cornelli

(packaging graphics

Unique ice cream cake

feature age old cartoons)

(Vanilla, Chocolate, Fruit, Nut)

Polar •

•

•

Relatively strong brand

Cone ice cream

equity due to

variant

 prolonged presence

Chocolate coated bar

•

ice cream variant •

•

Lack of product innovation

•

Lack of

Unique cone ice cream

 packaging

with flavor intensity

innovation

Brand ambassador in Shakib Al Hasan

•

Official ice cream sponsorship contract with BCB for one year

Kwality

•

Weakest in terms of equity in urban

•

Lack

of

market

 presence

markets but prolonged

24

 presence over team

Bellissimo

•

Lack of product and

strengthens equity in

 packaging

rural markets

innovation

•

Unique market

•

 products

segment creation (premium ice

•

•

Bland taste of

•

Improper use of

cream in regular

communication

offerings)

channels to

Unique flavor

communicate brand

offerings

message and appeal

Unique product

of premium

offerings (ice

concept

cream sandwich)

•

The above table analysis provides a few pointers for Bellissimo: •

The brand requires strong focus on the premium offering concept in order to cater to a targeted group of consumers who can afford and connect to the affordable premium concept

•

The brand needs to use appropriate communication channels and develop an appropriate integrated marketing communications program to uphold its affordable premium message

7. BRIDGING THE GAP BETWEEN CURRENT AND EXPECTED EQUITY 7.1 Gap analysis 7.1.1 Current brand equity Bellissimo currently has weak brand equity because of the following reasons: •

Bland product taste

•

Disoriented marketing communications which fail to successfully position the brand as a premium offering in an affordable manner

•

The product is currently being positioned in an already saturated market of regular purchase ice cream using the same communication channels that the other brands use, i.e., it does not leverage on a point of difference. Currently, like all other ice cream brands, Bellissimo

follows the same trade promotion strategies, ATL strategies (billboards and TVCs) and BTL

25

strategies (various event sponsorships) like all other brands in general which does not provide it any unique brand position or equity.

7.1.2 Projected brand equity Given the brand’s premium offering, Bellissimo expects the following as a brand: •

Strong consumer perception in terms of a premium experience at near-affordable prices

•

Value creation from offering

•

Unique market position as first mover and creator of locally manufactured premium ice cream

7.2 Strategy implementation Based on the above gaps identified, the following strategies are proposed:

i. Short-term (1 to 3 years) – Defend and consolidate brand position and leverage brand equity

In the short term, the brand needs to defend its existing market share, which is driven primarily by the volume of sales and weather concerns, and not purely because of Bellissimo’s preference by customers in the market. As a result, it needs to focus on the following: •

Shift focus towards targeted marketing communications programs

•

Capitalize on the premium offering of the brand

In order to do the above, the following strategies are proposed: a. Targeted promotional activities and sponsorships:

Currently, Bellissimo has been sponsoring a wide range of events starting from classical music and art exhibitions to university fairs and underground football tournaments. All of that dilutes the

 brand’s image. As a result, to uphold its premium image, Bellissimo should focus on the following types of events for promotion:

•

Strategic partnership with Bengal Institute for sponsorship of art and musical exhibitions of the company: This will attune the premium image of Bellissimo with the nation’s premium private art and culture curating entity, Bengal Institute. Furthermore, given that cultural

events in Dhaka are gradually attracting a young and culturally enthusiastic target audience, they will be more inclined to consume ice cream, which will in turn be mutually beneficial for Bellissimo. !

Cost involved: Title rights estimated at BDT 1,200,000 (as approximated by existing

 partnership agreements of Bengal Institute) and event sponsorship costs will vary depending on the type and scale of event

26

!

Risk: cultural events occurring in winter will not be beneficial for sales of Bellissimo

at the event outlets. Furthermore, ice cream consumption may not be favorable and may not match with the cultural set up.

•

Extended

partnership

of

University

events

such

as

career

fairs,

graduation

ceremonies/convocations and business competitions: This will help associate Bellissimo as

a mature brand catering to a sensible and solid target consumer base. Also, the sheer volume of  potential customers in such events makes the brand’s exposure more prominent. !

Cost involved – depending on the type of event but usually in the 6 to 7 digit mark 

!

Risk – event sponsorships do not necessarily drive sales and consumers may not be

willing to have ice cream during such events and rather wait for proper dinner or lunch meals

•

Seasonal event sponsorships and endorsements of focus groups to promote product variant – Proposals include: o

Bangladesh Diabetic Association can be sponsored by Bellissimo to promote its sugar-free diabetic ice cream.

o

The Yoghurt ice cream by Bellissimo may be launched and promoted at Pohela Boishakh and equivalent traditional festivals !

Cost involved - depending on the type of event but usually in the 6 to 7 digit

mark  !

Risk – event sponsorships do not necessarily drive sales and consumers may

not be willing to have ice cream during such events and rather wait for proper dinner or lunch meals

b. Trimming down on excessive and unreasonable promotion: A survey by Nielsen Bangladesh in

2014 concluded that TVCs launched by emerging snacks brands, particularly chips and ice creams, strengthened the brand equity of already existing brands and drove their sales instead of those of the  brand broadcasting the TVC. The survey yielded that particularly in the case of Bellissimo, TVCs launched by Bellissimo drove sales of Igloo and Polar by 9.6% and 4.2% respectively in 2015 while leaving no impact on the sales of Bellissimo ice cream. As a result, it is proposed that Bellissimo not engage in future creation of TVCs or radio commercials as they are expensive and rather diminish brand equity.

27

c. Modify brand message and develop integrated marketing communications to promote premium image:

The core strength of Bellissimo is in its premium offering, which customers face dissonance in distinguishing. As a result, the following short-term campaign is proposed:

Campaign Title – Bellissimo, Made from the best, for the best Campaign objectives: !

Identify and highlight the high quality ingredients used in Bellissimo products

!

Draw comparisons of normal ice cream with Bellissimo Premium Ice Cream

!

Connect customers with achieving a premium experience by consuming Bellissimo

!

Draw price comparisons to regular ice cream to justify premium

Communication tools: billboards, print media, and social media

Figure 13. Sample billboard design

Cost involved in campaign: BDT 1,600,000 approximately including billboard launching in strategic

locations, social media presence and other associated expenses Risk: regular consumers may not be well attuned to reception of brand message and premium effect in

English language based communication

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ii. Long-term – Attack market players, extend brand and brand elements and capture market

In the long term, the brand needs to adopt an attack strategy to target its competitors. This is where it needs to work on its shortcomings of bland taste and capitalize on its core strength of packaging and visual appeal. As a result the following strategies are proposed:

a.

Brand extension and product enhancement- introduced premium quality flavors like

Hazelnut, Coffee, exotic nuts, caramel, black forest etc. to provide market variety. This will be a long-term strategic benefit, as regular purchase ice cream brands like Igloo have not launched such products in its prolonged presence in the market. Furthermore, research and development towards taste enhancement will automatically drive modifications of the products by strengthening the taste. b. Packaging upgrade to enhance visual appeal –   Packaging modifications can be made to

enhance the visual appeal and the already existing equity of the brand in terms of appearance. Following are some sample packaging designs:

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Figure 14. Sample packaging design

8. CONCLUSION Bellissimo Premium Ice Cream launched in Bangladesh with a view to develop a new market segment for locally manufactured premium ice cream in regular servings. Its packaging and product design were  planned and implemented accordingly. However, the brand compromised on its taste to attune with competing brands and also engaged in all sorts of promotional activities, which did not reflect on the  brand DNA. As a result, the brand’s equity was a consequence of volume driven sales only and consumers developed a weak association of a good looking, high priced and bland tasting ice cream  brand. After identification of these shortcomings, short-term and long-term strategies were proposed to trim down and consolidate the brand’s marketing communications by targeted advertising and  promotion in the short term, and to work towards expansion, product development and market development in the long-term. Ultimately, for all brands, the core component of success is not the extent to which it is communicated to the consumer. It is the value that the brand offers and how the value relates to the consumer’s perception. This deliverability of values requires constant understanding of consumer perception, behavior and trend projections which, aligned with the strategies proposed, will hopefully ensure the brand deliverables of Bellissimo Premium Ice Cream are brought to fruition.

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