North South University (NSU)
MKT 202, Section 18
Course Title: Introduction to Marketing
Course Initiator: Shadman Sahir Ahmed (SSA1)
Date of submission: 28/05/2024
GROUP B
Name
ID
Asma Ulfat Shoshi
2414172030
Faizaah Fairooz
2413670630
Mirza Nawal Seeha
2413372630
Afroza Haque Orthy
2413675630
Riazul Hasan Shanto
2323962630
Jayed Hasan Abir
2321916630
1
To,
Shadman Sahir Ahmed
Lecturer,
Department of Marketing and International Business,
North South University
Dear sir,
Here is the report that was assigned to us as part of the MKT202 course. The report has been completed
by the knowledge that we have gained throughout the course. We have prepared a report on Savoy after
analyzing their market plan and company strategies. The purpose of this report is to understand and
acknowledge the whole marketing procedure of a company and to gather experience to be skillful enough
in future. We will be happy if you read the report carefully and provide us your valuable feedback.
We tried our best to complete this report correctly and professionally as much as possible.
Sincerely,
Asma Ulfat Shoshi
On behalf of Team-B
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Table of Contents
Contents
Section 1
• 1.1 The Company Background
• 1.2 SWOT Analysis
• 1.3 Competitor Analysis
• 1.4 Logo & Tagline
• 1.5 Mission Statement
Section 2
• 2.1 Product
• 2.2 Price (a)
•
(b)
•
(c)
• 2.3 Promotions
• 2.4 Place/ Distribution
Section 3
• 3.1 Type of product
• 3.2 Type of consumer buying
behavior
Section 4
• 4.1 Target Customers
• 4.2 Market Segmentation
• 4.3 Market Targeting
• 4.4 Differentiation
• 4.5 Positioning
Contribution
Page Number
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Section 1
1.1 The Company Background
Delivering the best of Ice Creams since 1950, Savoy has been keeping pace with the changing
lifestyle and taste buds of Bangladesh for decades. During the early days, the company used to
produce bakery and confectionery items for the British officers and expatriates only.
Later on, Army Welfare Trust took over the responsibility of this organization and indulged into
the delicious world of chocolates and ice cream for the first time.
In 2014, Golden Group acquired the ownership of the company from Senakalyan Sangstha and
started rejuvenating the company by establishing a new state-of-the-art factory along with a
wide range of ice cream varieties.
The company is now more focused than ever to ensure that our proud and loyal customers get
to taste the delight of savoy with every lick and bite. Our three exciting range of product i.e.
Regular, Premium and Natural will surely give a new taste and a long lasting experience.
1.2 SWOT Analysis
1.3 Competitor Analysis:
Savoy was established in Bangladesh in the 1950s. There was a lack of promotions and branding
for many years. For this reason, Savoy is facing tough competition in the ice cream industry as
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other brands like Igloo, Polar, and Lovello have been using effective promotional activities
throughout the years and have created a loyal customer group.
Igloo: Igloo is a leading ice cream brand in Bangladesh, known for its high-quality products and
wide range of flavors. With over 20,000 retail outlets, the brand has a strong presence
nationwide. To compete effectively, Savoy should consider increasing production and
expanding distribution while implementing a marketing strategy to match the competition.
Polar: Polar is a leading ice cream brand in Bangladesh with a strong supply chain in suburban
and rural areas. Savoy should follow their strategy, focusing on budget-friendly pricing and
expanding into the outside market. Polar has diverse promotional strategies, including
collaborations and BOGO deals. Savoy lags behind in promotions and product availability
compared to Polar.
1.4 Logo and tagline
Tagline: Naturally Good
1.5 Mission statement
To provide the best of nature in ice creams.
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Section 2
2.1 & 2.2(a) Product & Price
Product Name
Product Price
Stick
Ekdom Aam Sorbet
BDT.50
Ice Lolly Lemon/Orange
BDT.20
Shell & Core
BDT.25
Chocobar
BDT.35
Crunchie Bar
BDT.45
Ikone
BDT.50
Cone
Vanilla/Chocolate/Strawberry
Cup
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Vanilla/Strawberry/Mango/Choc
BDT.35
olate
Kheer Malai/Caramel Choco
Crunch/Doi/Coffee/Mawa Kulfi
BDT.75
Butterscotch/Chocolate Fudge
BDT.85
Shahi Kheer-100
BDT.100
Strawberry/Mango/Coffee Ripple
BDT.45
Regular Tub(1000ml)
BDT.280
Litre Containers
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Premium Tub(1000ml)
BDT.500
Double Sundae(1000ml)
BDT.350
2.2 (b) Pricing Strategy
Savoy mainly uses a cost-based pricing strategy. Ensures all production costs, including
ingredients, labor, and overhead, are covered. They can quickly set prices without extensive
market research by adding a markup to the production cost. This profit-oriented approach
ensures production costs are covered and target profits are achieved while simplifying the
pricing process.
2.2 (c) Does the pricing strategy need any revisions for the segment the company is targeting?
The cost-based pricing strategy is an appropriate strategy for an ice cream company whose
ultimate goal is to maximize profits. But, if Savoy wants to compete with other marketdominating companies like Igloo or Polar, it could also resort to a competition-based pricing
strategy to maintain its current market share or capture a larger market share.
2.3 Promotions
Facebook: The most widely social site in existence today is Facebook. In Bangladesh,59.2 million
individuals frequently use Facebook. That's why, Savoy uses Facebook for its maximum
advertising initiatives and promotional activities. As a result, it makes a strategy to engage and
communicate with both present and future potential customers. With 129,000 followers, Savoy's
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Facebook page is the most popular platform among its followers. Savoy offers unique discounts
and incentives to its consumers on certain occasions.
Savoy hosted a contest during the Cricket World Cup in 2023.
They offered a 20% discount on Women's Day,2024, and a 50% discount on Valentine's Day 2024.
During the time of Ramadan, they gave free home delivery service.
Website: Savoy proactively promotes its products and company
through
its
website,
informing
customers
about
new
products/flavors and attractive offers through their newsletter. The
website also delivers extensive details about Savoy's history, its
founder, the company's vision, mission, values and objectives, and its
hotline number.
Instagram: Since there isn't a substitute for Instagram for brand
promotion, Savoy strongly markets its brand by sharing eye-catching
images and inventive advertisements. Their ‘@savoy.bd’ Instagram
profile currently has around 6900 followers and that number is rising
day by day. They are giving PR to many Instagram influencers and
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sharing the reviews given by their current customers on their Instagram stories and highlights.
New promotional tactics Savoy can adapt: Bangladesh's ice cream market is expanding but is
not yet overcrowded. As there is fierce competition in this sector, Savoy must therefore position
itself by implementing promotional techniques that none of its competitors use.
Event Sponsorship: By hosting various events at schools and universities, Savoy can draw in
young people and enhance brand visibility. They can hold enjoyable events on campuses and
distribute free presents, which will improve their brand's visibility and popularity.
Influencer marketing: Savoy has previously employed this marketing strategy. For example, they
used popular YouTuber "Salman Muqtadir" and actress "Mumtaheena Chowdhury Toya" to
promote their brand. We would suggest them to choose any food vlogger. We would like to
recommend "Petuk Couple," a duo of food vloggers and digital video creators, Rasif Shafique and
Ridhima Khan Ipsha. They have 194,000 Instagram followers, 895,000 YouTube subscribers, and
1.8 million active Facebook fans.
Buzz marketing: The Petuk Couple are opinion leaders with a vast following that they can easily
influence. They have knowledge, a distinct perspective, and expertise on food as they are food
vloggers. Using Petuk Couple as their brand ambassador would make it simple for Savoy to use
social media to create popularity for their products.
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Promotional method (except advertising) Savoy can use
•
Sales promotion: At present, Savoy isn't running any sales campaigns. It can provide
temporary incentives, such as discounts, coupons, and offers, to boost sales. For instance,
Savoy can offer a free scoop of ice cream to customers who purchase two scoops at once.
•
Personal selling: Savoy may distribute pamphlets featuring eye-catching images of its
distinctively flavored ice cream varieties outside of multiple organizations and workplaces
to generate interaction and collect feedback from clients of different segments.
•
Public relation: Savoy has sponsored a few public events,
including "Let's Vibe Dhaka with Anuv Jain" and "A Symphony
of Love," a special musical night event for Valentine's Day.
However, to draw in the target audience, they still need to
host a few more public events at different malls, and
prestigious institutions, or sponsor multiple events.
•
Direct marketing: Customers can easily purchase any goods
from Savoy by using the hotline number that is currently listed
on their website. However, some customers may find using
their hotline number to order items to be inconvenient. By
developing their app, they could facilitate access to their web services. Customers may
use that app to make use of their online delivery services, and it also allows them to get
feedback from users to improve their offerings.
2.4 Place/ DistributionSavoy uses an Intensive
Distribution strategy as they have made their ice
creams available in many places, from small
convenience stores to their exclusive ice cream
galleries, such as in Chef’s Table (Gulshan-2 &
Dhanmondi). In addition, their ice creams can be
purchased directly through their hotline ordering
system and delivered to the customer’s doorstep.
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Section 3
3.1 Type of Product
Savoy products are considered convenience goods,
because Savoy doesn't have a strong brand preference and
is purchased frequently, swiftly, and with little effort in
comparison shopping. Savoy's customer base is extremely
sensitive to price, and their merchandise isn’t particularly
inexpensive. It uses a widespread distribution strategy and
carefully targets the mass market to conduct its
promotions.
3.2 Type of consumer buying behavior
Savoy's customers demonstrate variety-seeking buying
behavior, often influenced by low consumer involvement
and significant brand differentiations. In these cases,
consumers frequently switch between brands, choosing
Savoy initially but then exploring other brands in search of
novelty or new experiences. This behavior stems from a
desire for variety rather than dissatisfaction.
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Section 4
4.1 Target Customers
Savoy targets the mass market by offering products in grocery stores, super shops, and in their
exclusive outlet called ‘Savoy Gallery’. They’ve chosen an ‘undifferentiated’ market strategy for
their healthy and natural frozen treats. Savoy’s delicious creations are crafted to tantalize the
taste buds of people of all ages. Their smooth, creamy, and delightful flavors are designed for
people of all ages and lifestyles. Savoy ice cream is full of probiotic goodness, real fruit chunks,
and natural sweeteners that are free of harmful sugars and synthetic colors. Savoy wants ‘True
Friends,’ who are both loyal and high in profitability, as their preferred customer base.
4.2 Market Segmentation
1. Geographic Segmentation: Branded ice cream remains an urban product.
Geographically, branded ice cream has not reached urban and semi-urban areas. Savoy
currently provides ice cream in Dhaka, Chittagong, Jashore, Comilla, and Tangail. In
addition, their products can be ordered online through their hotline number and
delivered to the customer’s doorstep. This home-delivery facility is, however only
available in Dhaka currently.
2. Demographic Segmentation:
•
Age and Life Cycle: Savoy’s main target customer groups are millennials and Gen-Zs.
They do this by doing various captivating advertisements on social media, like using
social media influencers for buzz marketing who are popular among millennials and
Gen-Zs. They also run sales promotion campaigns in schools, colleges, and universities,
to attract youngsters.
•
Income: Savoy ice cream targets middle-income and higher-income groups. The price of
Savoy ice cream is comparatively higher than other brands and has managed to grab
urban and suburban customer groups with standard prices.
3. Psychographic Segmentation:
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•
Social Class: Savoy targets different customer groups in terms of social class. Savoy
offers unique and exotic flavors that are comparatively higher-priced in their outlets in
Gulshan-2 and Madani Avenue. On the other, their budget-friendly ice creams can be
found in the smaller local convenience stores and super shops.
•
Life Style: Customers who want a taste of natural and organic ice cream can purchase
Savoy as they promise naturally sourced quality ice creams. Moreover, Savoy’s diverse
and convenient menu serves people who are health-conscious and look for a great taste
experience as they promise joyful taste along with nutritional health benefits.
4.3 Market Targeting
Savoy focuses on undifferentiated or mass marketing for their products. Their focus is on the
taste of the consumer. Their delicious ice cream is designed to satisfy the taste buds of people
of all ages, while also providing sufficient health benefits. Even when they're closely monitoring
their caloric intake, they can still indulge in their smooth, creamy, and delightful flavors, which
are designed for people of all ages and lifestyles. Since Bangladesh is a growing economy, Savoy
considers most of its citizens as potential consumers and designs its products and
advertisements with mass marketing in mind. For example, all of Savoy’s ice creams have one
thing in common: their organic and natural flavors, which attract most of the masses.
4.4 Differentiation:
Product Differentiation: All of Savoy’s ice creams are easily distinguishable from its
competitors. For example, one of Savoy’s signature ice creams is ‘Carrot Delight.’ Savoy claims
that this is the first ice cream in Bangladesh that’s been made with carefully selected 100%
fresh carrots. ‘Anjeer Honey’, another one of Savoy’s signature ice creams, is also claimed to be
the first-ever ice cream in Bangladesh with authentic and natural honey flavor.
Service Differentiation: Savoy differentiates itself from its competitors by its services as well, as
Savoy provides free delivery services in the areas in which it has super shops or Savoy Gallery. It
also offers night deliveries, whereas its competitors do not.
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Image Differentiation: A company’s image should convey the product's distinctive benefits and
positioning and must be supported by everything the company says or does. Savoy is no
different as people see Savoy as an authentic and natural ice cream brand. Every advertisement
of Savoy further confirms that.
4.5 Positioning
Savoy is using a "More-for-More" value proposition. This is because they are providing ice
creams with high-quality, natural ingredients and unique flavors like mango sorbet, jalpai with
ripple at a higher price point. The brand elevates its image through upscale packaging,
innovative product lines, and exclusive retail stores, attracting customers willing to pay more
for superior quality and a premium experience.
Contributions
Asma Ulfat Shoshi
Section-2
Afroza Haque Orthy
Section-4
Faizaah Fairooz
Section-3
Jayed Abir
Section-4
Riazul Hasan Shanto
Section-1
Seeha Nawal
Section-2
Thank You!
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