Ice Cystals Shave Ice

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According to reports, premium ice cream and frozen yogurt products are losing market share to mid-priced and other frozen dessert products. Based on this information, it is anticipated that the frozen dessert market can be divided into two customer segments. The first segment prefers premium ice cream and frozen yogurt products. The other segment obviously includes those that prefer frozen ice products. Shave ice products are ideal for today's health-conscious consumers. They boast no fat, no cholesterol, and are relatively low in calories.

Ice Crystals will target all segments of Karachi's population: children, teenagers, and adults. The young population will be of special interest since it comprises 65% of Karachi's total population. This population will be targeted with Mexican flavored syrups and juices.

4.2 Target Market Segment Strategy

Ice Crystals will target the low- to mid-to-high income consumers who want to have a high quality dessert for moderate prices. Ice Dream's shave ice meets the quality required by these customers since it will also cater to the large population in Karachi with its Mexican flavored syrups.

4.3 Industry Analysis

One of the best known shave ice businesses is SnoCupz Shave Ice. SnoCupz have demonstrated the success and feasibility of selling shave ice. The SnoCupz dealership has been in existence for the last couple of years with 2 individual dealerships throughout the karachi. SnoCupz syrups products are also sold in Wal Marts throughout the country. While no SnoCupz dealership currently exists in Pakistan, SnoCupz products are sold at Dolmen Mall, outside supemarkets with great success. The potential success for selling shave ice is attributed to the following:

- Compared to other food service products, Ice Crystals will be a relatively simple business to operate.

- Shave ice has a low food cost and is easy to prepare, which keeps speed-of-service at optimum levels to keep up with high-traffic volumes.

- Ice Crystals will be easy to maintain and clean.

- Shave ice is a product that has yielded a considerable profit in terms of cost to produce at Rs. 50

- Shave ice is an ideal product for the health-conscious consumer.

4.3.1 Competition and Buying Patterns

The shave ice business will be new to Karachi. Competitors in this type of business primarily sell sno-cones and do not focus on the shave ice market. One major competitor is the "SnoCupz " located in Dolmen Mall. SnoCupz sells sno-cones through a small display with limited choices of syrups. Other competitors sell sno-cones through small kiosk in karachiwhich also have limited syrup selections and do not necessarily focus on the health issues and quality ingredients, and mi-to-high market segment of shave ice industry as their primary objective.

The keys to success will definitely focus on selling shave ice and not sno-cones made with coarse ice and selling high quality syrups. Prices will also be competitive with those of the competition.

4.3.2 Main Competitors

Main competitors include the SnoCupz , Garcia's Market, and Wal-Mart. The following are strengths and weaknesses of each.

- SnoCupz

- Strengths: The main strength of SnoCupz is that it is the only business in Karachi that caters to the sno-cone market. It also has very reasonable prices.

- Weaknesses: The primary weakness of SnoCupz is that it does not sell shave ice but rather sno-cones made from very coarse ice. Syrups are also not of good quality.

- Local Sno-cones

- Strengths: Main strength of sno-cones sold by local sno-cones is the convenience to the shopper and low price.

- Weaknesses: Loca sno-cones weakness is that they do not sell quality syrups. Also, the sno-cone business is not their primary focus or product.

4.3.3 Industry Participants

The shaved ice industry in Karachi, Pakistan currently has no key players since no other business of this type currently exists.

Strategy and Implementation Summary

Ice Crystals is planning for slow growth by expanding flavors available from 20 to 30 in year two of operation. Also, an additional product to be sold in year two will include ice cream in flavors of vanilla and chocolate.

5.1 Marketing Strategy

Ice Crystals' overall marketing strategy will be to create an image of offering the highest quality shave ice in the city. The business will be located in a high traffic area of Karachi. Customers will be reached through advertisements such as fliers, newspaper ads, and through its grand opening ceremonies.

A special marketing program will also be incorporated by offering special coupon prices for nearby restaurants, motels, offices and the gas station to customers who purchase any product at Ice Crystals.

5.1.1 Promotion Strategy

Ice Crystals will promote shave ice to customers by:

- Flier distribution to consumers' homes within a five-mile radius.

- Billboard advertisements will be purchased during the first three months of business until a clientele is built.

- Ice Crystals will offer discounts to recreational groups such as children clubs (M.A.D, Playhouse Childcare, Mud-Pie ceramics art studio) which resides in nearby area.

- Promoting products for an introductory price at its Grand Opening.

- Ice Crystals will "adopt a school" and provide shave ice to individuals who are selected for having excellent attendance, good grades, and good citizenship. Other incentives will include sponsoring a good attendance program by purchasing a bike and raffling it to students with the best attendance. This will be a promotional strategy to encourage business.

5.1.2 Distribution Strategy

Major marketing will be conducted through social networking sites and local flier distribution during the first three months of operation. Total costs will be