Professional Documents
Culture Documents
December 2008
Executive Summary
– Estimated worth USD 209 mn in 2008, expected to grow to USD 240 mn in 2009
Market – North and west account for 70% of total sales
– High profit margins ranging between 30-50%
20%
South
Source: The Economic Times “Showers upset regional sales targets of marketers”, May 2007; IBEF “FMCG companies target consumers
in summer”, March 2008; India Environment Portal “Is our ice cream natural or synthetic?, August 2007; The Financial Express “Fire & Ice”,
June 2008; 51Rainbow company website
• Market Overview
• Advertising Trends
• Competition
• Factors – External & Internal
• Key Developments
Ice Cream Industry
Key Competitors in Ice Cream Category
• Mother Dairy
– Key Strengths
• Popular ( Delhi)
• Ideal in milk ice creams
• Popular for variety of product offerings : Milk, Curd, Butter
• Trust and reputation
• Kwality Walls
– Key Strengths
• Premium Imagery – Offerings in Ice Formats
• Popular
• TV ads • Black grape jelly : In
• Trust and reputation black current
Varieties in chocolate ice creams
• • Twister Zing : Raspberry
• Attractive packaging
and Mango
• Benefit Beat the heat
• Others in milk base are :
Litchi Zap and Mango
Zap priced @ 25
Key Competitors
Vadilal
•
–
Key Strengths
Low pricing
Offerings in Ice Formats
• Easy availability
•
• Juice Candies
• Flavors Kachi kerri, Black
Current , Mango, Orange, Kala
khatta, Jaljeera and Tiranga ice
candy
• Price @ 10
• Benefit Quenches thirst and
offers refreshment
Key Competitors
• Amul
– Key Strengths
• Popular
• TV ads
• Trust and reputation
• Varieties in milk ice creams
• Creambell
– Key Strengths
• For masses
• Availability
• Economical
Trend
Benefits derived from falling sFranchises and strategic
costs partnerships to enhance
distribution
Large-scale advertising geared towards brand building
and sales promotion
Advertising on Television: Jan-Apr 2008 Share of TV advertising
• Grew by 15% rise in 2008 compared to 2007
• Average number of ads per day increased by 45%
• The top 3 ice cream brands advertised 9% Hatsun Agro
Kwality Walls
– Kwality Walls Almond Praline 78% 4% Metro Daily Ltd
– Kwality Walls Paddle Pop
•(HUL) 2%
7% Karnataka Milk
Source: exchange4media.com “Snapshot of advertising by Ice Cream category in Print during Jan-Apr’ 08”; Indiatelevision.com “Snapshot of
advertising by Ice Cream category in January-April 2008”, June 2008
Product diversification to target specific segments
Capitalizing on
• Naturally flavoured ice cream i.e. without any artificial or demand from a
synthetic flavour has been introduced for the premium segment niche markets
Source: Financial Express “Ice cream war begins as HUL, Amul oil plans”, February 2008
Enhancing network through franchises and strategic partnerships
Strengthens marketing, sales and distribution.
Company Projects
HUL Kiosks - Swirls
GCMMF Increase Amul Parlours from 1,800 to 3,000 in 2008 and 10,000 by 2009, Cyber stores in 100
cities, Cyber clubs in 125 cities
Franchising
Hatsun Agro Premium ice cream outlet – Arun Ice Cream Unlimited
Milkway Express 1000 outlets in southern and central India by 2009, counters at corporate campuses
Movenpick Rhapsody Foods & Beverages Re-launch brand in Mumbai, Delhi, Bangalore,
Hyderabad, Kolkata and Chennai
Source: FnBnews “Coops, the mainstay of India's dairy model”, October 2008; Business Standard “Ice-cream makers add
healthy flavours”, April 2008; FoodIndustryIndia “Gelato ice creams is a hit at AAHAR”, March 2008
• Market Overview
• Advertising Trends
• Competition
• Factors – External & Internal
• Key Developments
16%
Market
Major Players Market share
• Fiercely competitive due to attractive
economics with profit margins ranging
between 30-50% 55%
Unorganized
• Organized sector comprises GCMMF’s
Amul, HUL’s Kwality Walls, Mother
Diary, Baskin Robbins and a number of
regional brands
• Amul is the market leader and is at the Organized
45%
forefront of targeting the rural market
• For most national players viz. GCMMF, Vadilal
Challenges
Low quality products and
competitive pricing from
unorganized sector
Drivers
Low consumption levels Lack of cold chain facilities
Developing institutional
channel
External Factors
ECONOMIC FACTOR - Low consumption
ml levels
Source: Economic Times “Vanilla prices shoot up on short supply”, October 2008; Business Today “The Branded Ice-Cream Tango
Begins”, July 2000; Rediff “The ice-cream war hots up”, March 2004; Vadilal Annual Reports; Hindu “The Ice-cream Punch”, June 2004
External Factors
SOCIETAL FACTOR - Low quality products and competitive pricing in
the unorganized sector