Indian Ice-Cream Industry Analysis
Team Name: Group 10
1st Round 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
 Sourcing/procurement
 Taxes, custom duties, currency fluctuations
 Seasonal ingredients
 High price fluctuations
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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
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Capacity & Utilization
 Minimizing excess
capacity
 Merge another
manufacturing facility
with ‘Just Bake’
 Rent out part of
manufacturing facility
Olivia Fahnestock
 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
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Short Term Focus
Jason 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
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Long Term Focus
Jason 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
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Analysis
Policy
Target Service Level
Grace Dong
Average weekly Average de-seasonalized
profits
weekly profit
784.1
983.19
Scaled Stocking Level
1020.92
952.43
Common Service Level
1087.62
892.28
Target Level for Top 3
margin
807.66
634.71
Target Level for Top 2
margin
919.16
831.91
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Analysis
Target Scaled
Service Stocking
Level
Level
450
Common Top 3
Top 2
Service Margin Margin
Level
Grace Dong
Target
Service
Level
400
350
Units
300
Expected Demand
250
Stocked Levels
200
Total Sales
150
100
50
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55
Week
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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
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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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