Case: KAPS Ice Cream: Should it enter the Premium Segment?

Memorandum

Case: KAPS Ice Cream: Should it enter the Premium Segment?

Name: ABC

Date: April 16, 2018

KEY ISSUE

KAPS Ice cream is looking to increase its product portfolio through Premiumization, as it can help to increase revenue streams and profitability in the competitive Indian ice-cream market. Currently, due to the current portfolio in the market, the company is struggling to compete in the competitive Indian market. Different competitors are looking for increases product segments to target different customers in the market. Thus, accordingly, the premium segment is a counter strategy.

RECOMMENDATION

1. The premium pricing strategy can be enhanced by this company for new product categories in the Indian market. Beyond the current portfolio, the company must develop new products to get the attention of people
2. The premium segment of this company can also be expanded in different regions, as expansion only in metropolitan cities is not a good idea for the management, especially when operating in this competitive market.
3. The premium segment must be enhanced by the company management through opening some exclusive stores, and these stories must be compatible with the current market and selling strategies

RATIONALE

In the competitive ice-cream market, it has been revealed that the company exists with some low-cost segments. Thus, the premium segment is a good option for the company to integrate with the perception of premium customers. These customers are willing to pay the premium, due to the perception, created by the company.

PROS AND CONS

Regard