Indian Ice-Cream Industry Analysis

Team Name: Group 101st Round Room: RAWLS 3095

Grace DongOlivia Fahnestock

Jason MillerAlex Johnson

GSCMI 2013 Case Competition 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

GSCMI 2013 Case Competition 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

GSCMI 2013 Case Competition 4

Capacity & Utilization Olivia 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

GSCMI 2013 Case Competition 5

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

GSCMI 2013 Case Competition 6

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

GSCMI 2013 Case Competition 7

Analysis Grace Dong

PolicyAverage weekly profits

Average de-seasonalized weekly profit

Target Service Level 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

GSCMI 2013 Case Competition 8

Analysis Grace Dong

1 5 9 13 17 21 25 29 33 37 41 45 49 530

50

100

150

200

250

300

350

400

450

Expected DemandStocked LevelsTotal Sales

Week

Uni

tsTarget Service Level

Scaled Stocking Level

Common Service Level

Top 3 Margin

Top 2 Margin

Target Service Level

GSCMI 2013 Case Competition 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

GSCMI 2013 Case Competition 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