There are about 41 ice cream varieties which are divided into two separate brands according to the target market. CCS offers IMORICH branded ice-cream to the premium customers and Elephant House branded ice-creams to the regular customers. Number of ice cream varieties offered by CCS currently is shown below,
Figure 2- No. of ice cream varieties
Elephant House’s range of take-home products varies in terms of volume and variety from the 500 ml to 4 L ice-cream tubs of Vanilla, Strawberry, Chocolate, Fruit and Nut, karuthakolamban, Pani Cadju and Hakuru mix etc. The premium range of ice creams includes the extraordinary flavours such as Coffee, Very berry, French vanilla, Cookie cream, Rocky road and Strawberry seduction. CCS offers single serve ice-creams too. Some of the popular ranges of single serve ice-creams are wonder cone, wonder bar, wonder bite, wonder lite etc (super brands, 2015)
The reason for price to become more important than the rest of the elements of the marketing mix is that price is a source which generates income and profits while other elements of the company are cost generators such as cost of production, the cost of distribution, and the cost of promotion. (Martin, 2014) Pricing, helps CCS to manage all the above costs.
CCS uses competitive pricing strategy to price its product by referring to the price of its competitor (Muthumala, 2012).When comparing the prices of Elephant House soft drinks with other competitors such as Coca-Cola, Pepsi, red bull etc. in soft drinks market, the prices of soft drinks are similar to its competitor’s price.
CCS uses premium pricing strategy to price its premium range of ice cream brand IMORICH.ref 5.Elephant House branded ice creams are a bit expensive when compared to its competitors such as Highland, Cargill’s, Kotmale, Alerics and Pelwatte etc, this is due to quality reasons. This can be clearly understood by a market map of Ice creams in Sri Lanka.