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its justification. Alternative Evaluation Basis Butwal Nepalgunj Company and Product Aspects
It has hot climate in summer season and temperature may drop to 6 degree Celsius in winter season. Its population density and area is less than Butwal. Nepalgunj is famous for Ravadi which may affect the ice-cream market.
Remarks
Demand for ice-cream is high in hot climatic condition thus, Nepalgunj is suitable. Larger the population, higher is the demand. Thus, Butwal is suitable Immense opportunity to exploit increasing demand in Butwal and threat of existing substitute in Nepalgunj. Hence, Butwal is suitable Expanding in Butwal is efficient in comparison to Nepalgunj Market.
It is one of the top ten largest cities of Nepal. Butwals ice-cream market is unsaturated and in infant phase with high demand for ice-cream and no much competition. Expansion cost includes searching for convenient location, establishing new branch, etc.
Cost
Expansion cost is relatively high due to extra cost of feasibility study of market, life style, marketing cost (Promotion, Location selection, ), competition with well-established icecream parlors and substitutes like Ravadi(milk item)
Decision: From the analysis, Butwal ice-cream factory should currently add capacity in Butwal. He can do it by following such things: Widen the scope of business by adding catering services to their onsite offerings in some of the events such as anniversaries, birthdays, and business meetings, casual Fridays, company celebrations, etc. Offer more flavors in delicious ice-cream and be creative in decorating ice-cream parlors to attract more customers Establish one-self as renowned brand by offering consistently better quality , this would assist in brand recognition and word of mouth promotion i.e. assisting in further expansion in other markets. His business plan should include building his competence to expand ice-cream parlor in Nepalgunj too because of supportive climatic conditions for ice-cream products, and to achieve his aim of becoming a tycoon in ice-cream industry, he should step out from his local and comfort market zone slowly.