1. Kwality Ice Cream with Chocolate Chips Presented By Rachel Freidenreich, Chrisso Mallouris, and Andrea Rossi Aim and Objectives n The aim of the Kwality Ice Cream product development team is to increase consumer awareness of ethnic ice cream products n To develop a new market in ethnic ice cream and expand the market to include our unique flavors n To develop new ice cream flavors from different ethnicities and sell in Pathmark supermarkets in New Jersey n To increase total sales and go nationwide with this new ethnic ice cream Partnership with Kwality Ice Cream Kwality Ice Cream is owned and operated by Dr. Kanti Parekh. The company was created in 2001 and has grown dramatically over this short period. In April of 2003 Kwality Ice cream became available in Pathmark stores in the tri-state area. Parekh uses high quality, authentic ingredients to create a premium, ethnic ice cream in more than 25 delicious flavors. Cooperation between Kwality Ice Cream and the Rutgers Product Development Team has resulted in the creation of a new prototype for Kwality Ice Cream with Chocolate Chips. This flavor was found acceptable to both parties and the scale-up process is underway. Market Analysis n 90% of households eat ice cream, of which 3.5% eat superpremium n Mint chocolate chip ice cream comprises 3.1% of market n Ice cream sales grossed over $11.5 billion in 1999 n Kwality Ice Cream approximately 15% of superpremium ice cream n $11.5 billion x.035 x.031 x.15 = $1.9 million n Total market potential: $1.9 million through Kwality Ice Cream with chocolate chips. Prototype Development The team members came up with 19 ideas of possible new products. Using various elimination techniques and the input from the owner of the company, the team decided to produce single serving Kwality Ice Cream sundaes to attract busy consumers who want chocolate in their ice cream. The ice cream sundaes would consist of Kwality Ice Cream in any flavor with chocolate chip and/or a hard chocolate topping. There would be 4-4oz containers per box, which would be sold for $4.50. After researching costs of production, the product development team found that the boxes needed to package the ice cream would be much more costly than expected. Since the Ciao- bella facility also hand-packs the ice cream, packaging in small amounts would take much longer than expected and labor costs would increase. In addition, the 4oz container was too small to be sold at the price originally estimated. Since Kwality Ice Cream is new to the market and it has no loyal customers at this time, introducing a high priced product so soon may discourage customers. These expenses added up to be too high for the company at this time. Therefore the team decided to continue producing ice cream in the gallon and pint sizes, however it will add chocolate chips to some flavors for a larger variety. This new line of flavors is similar to ice cream currently on the market, chocolate chip, mint chocolate chip, mocca chip… This new line of ice cream flavors will be more acceptable to consumers. Planned Production Output n Ice cream freezers are quoted in nominal gal/hour assuming 100% overrun n For premium ice creams with lower overrun, the capacity of the freezer is reduced from the 300gal/hour under 100% over run conditions n For example, a 20% overrun system would result in 180 gal/hour The Process Quality Control Plan n The ingredients should be stored properly and not for extended periods of time. n Pasteurization is a critical control point, since it is a step at which a hazard can be reduced, the microbial spoilage organisms. This can be monitored by simply measuring the temperature of the milk to make sure that it reaches the desired temperature and to time it to make sure it stays at this temperature for the correct amount of time, if it does not reach this temperature it is fed back to the batch to be reprocessed. n The machinery used to make the ice cream should be clean and sanitized n The ice cream should be shipped properly and if it is allowed to melt it should not be refrozen. This ice cream would need to be disposed of. n The ice cream must be transported in refrigerated trucks, as well as the milk that originally was brought to the plant. The trucks also must be clean and sanitized. n Dairy products are tested for contamination to insure their safety Plant Ciao Bella:Plant-5000 sq. ft.; Wearhouse Space-150000 sq. ft.; Freezer Storage 10000 sq. ft. $3.3 Million Dollars Upper Level:Marketing Department Lower Level:Storage and Processing Departments Packaging