Gearing up to increase its penetration in nepali market

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Reference no: EM132216932

Please help me summarize this article with a critique statement. Also explain why it should think about ethics and culture for running the business.

Baskin-Robbins, a global chain of ice cream parlours, is gearing up to increase its penetration in the Nepali market.

Sun International, local franchise owner of the brand, is planning to open five new outlets in the valley and seven outside. Currently, the company operates ice cream parlours at Durbar Marg, Uttar Dhoka and Thamel in Kathmandu. Besides, the brand’s products are available in 25 eateries and supermarkets across the valley.

Baskin-Robbins is one of the world’s largest ice cream franchises, with over 5,800 outlets across the world. Headquartered in Massachusetts, US, the company has its presence in over 30 countries.

The new Baskin-Robbins ice-cream parlours in Nepal, according to Sun International, will feature world class infrastructure and top-level service. Each and every detailing of the parlour will be carried out as per the Baskin-Robbins guidelines, it said.

“The market for ice cream in the Kathmandu valley is growing massively. Demand is soaring in other places as well. The new outlets are being opened to capitalise on the growing market,” said Rabi Rajkarnikar, managing director of Sun International.

According to Rajkarnikar, the new outlets will be opened in two phases. In the first phase, stores will be opened in Patan, Bhaisepati, Kalimati, Maharajgunj and Bouddha within Kathmandu. “The first phase will end within December, while the second phase will complete within March, 2013,” Rajkarnikar said.

Outside Kathmandu, Sun International planes to open outlets in Pokhara, Narayanghat, Butwal, Lumbini, Dharan, Biratnagar and Bhairawa. Each store will have an area of 150-300 sqft.

Rajkarnikar is confident about the success of the company’s expansion plans. “Quality is our major strength and we never compromise on quality. I am sure the new parlours will become a success,” he said, adding that the expansion might also help them reduce price and become more competitive. “If the new stores report good sales, this move will help us keep prices lower,” said Rajkarnikar.

Baskin-Robbins ice cream parlours in the valley sell around 100-150 litters of ice cream a day on an average during summer. All the products available in the domestic market are imported from India.

The new ice-cream parlours will have separate franchise owners, but will operate under Sun International. “We will provide all the support to franchise owners and monitor their operation,” said Rajkarnikar. “We will also make sure that the parlors consistently maintain quality.”

Rajkarnikar added that the parlors will be built with a minimum investment of Rs 2-3.5 million. In a bid to fortify its expansion plans, Sun International is also looking for a partner.

Apart from new outlets, the company is also planning to introduce new ice cream flavors. The company is introducing ice cream cakes within the next month. Baskin-Robins offers 34 of ice-cream flavors in Nepal

Reference no: EM132216932

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