MARKET ANALYSIS REPORT ON ICE CREAM INDUSTRY
SUBMITTED BY KANISHKA MEHROTRA CLASS XII – E
CONTENTS
S. No. Title 1
Ice cream industry overview
2
Market & key competitions Analysis
3
Product selection and attributes
4
Product range, features, USP, tag line
5
Government & regulatory compliances
6
Product manufacture, logo, label, packing
7
Product, transportation, storage, distribution
8
Marketing plan, pricing, product placement
9
Product promotion, wholesalers, retailer
10
Cost effective marketing schemes & strategies
11
Conclusion
12
Reference
Ice Cream Industry Profile in India:
Page No.
The ice cream industry in India is in many ways, reflective of the overall population distribution. The country’s population is primarily rural with approximately 65% of the population living in villages with a population of less than 5,000; this means there are well over 150,000 villages with a combined population in excess of 650 million. This has contributed to a highly fragmented industry that by many estimates has over 70,000 ice cream entities. Many of these are single family operations where the product is made either in the home or in very small factories and sold on the streets. The 350 million remaining people are concentrated in the cities where the industry is reasonably concentrated in the hands of a few international and domestic firms. It is estimated that only 30% of the entire market is “organized” and the industry meets the classic definition of a fragmented industry, that is, one where there is an absence of market leaders with the power to shape industry events. Ice cream or ice-cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavourings and colorings are used in addition to (or in replacement of) the natural ingredients. This mixture is stirred slowly while cooling to prevent large ice crystals from forming; the result is a smoothly textured ice cream.
Organized Ice cream Industry in India When looked at closely, about half the organized market is dominated by dairy giants like Amul (ice cream biz contributes only 5% to its turnover) & Mother dairy, adding another 22% for the regional players. Between Vadilal, Kwality walls, Cream bell and a handful of premium brands there’s about 40% of the cone. Our organized ice-cream industry is worth about only Rs. 1800 crores in India & is growing at 15%.
Market competitions shares: One of the top reasons for Amul (38% market share) being market leader is that distribution/reach defines sales. It is an area of work for pure play ice cream companies. India’s largest FMCG company, HUL, Kwality Walls (14%) cannot hide behind the reach and therefore is 2nd largest player followed by Vadilal (12%), Mother Dairy (8%) & Cream Bell (6%)
Market SWOT Analysis:
(Strength, Weakness, Opportunities &
Threats) An ice cream is a refrigerated product and therefore has limited shelf life Orange bar, Mango Dolly, Choco bar, Kesar kulfi, Cornetto, Feast, Cassata are 90% of the time a consumer asks for these flavors. Ice cream majors however have been focusing on reach, pricing & impulse buy only In the last 15 years not much has been done to create brands or promote new offerings Kwality Walls Parent Company
HUL
Category
Food Product
Sector
Food Products
Tagline/ Slogan
A treat for every occasion
USP
Lots of varieties like Cornetto, Feast STP
Segment
Quality conscious children and adults
Target Group
Kids and youth
Positioning
An ice-cream to celebrate happy moments in life SWOT Analysis 1. Strong brand name
Strength
2.Excellent advertising and visibility 3.Good product distribution and availability 4.Lots of flavors and varieties available
Weakness Opportunity
1. Food products have a limited shelf life 1.Better and newer flavors
Threats
1.Threat from existing ice-cream brands 2.Local Kulfis Amul Ice Cream
Parent Company
Amul
Category
Ice Cream
Sector
Food Products
Tagline/ Slogan
Real Milk Real Ice-cream
USP
Premium Ice Cream made in various varieties and flavors with dry fruits and nuts STP
Segment
Quality conscious children and adults
Target Group
Kids and youth
Positioning
India's No.1 Ice cream SWOT Analysis 1. Good product range include various flavors, party packs, sticks, cones etc 2. Good quality and packaging, and good advertising
Strength
3. Amul is one of the most respected top-of-themind brands 4. Also launched probiotic and sugarfree icecreams 5. Offers over 200 products across India
Weakness
1. Growing competition form international and other brands means limited market share 2. Limited international presence as compared to leading global brands 1. High End ice-cream to tap the higher income group also
Opportunity
2. Tie-up with food chains, restaurants 3. Mobile vans for better visibility 1. Kulfi in rural markets
Threats
2. Local ice creams and sweet dishes 3. Health conscious people refraining from sweets
Vadilal Icecream Parent Company
Vadilal
Category
Food processing and products
Sector
Food and Beverages
Tagline/ Slogan
Happiness kaSwaad Purely vegetarian with many options for the customers
USP
STP Segment Target Group
Icecream for Quality conscious kids and adults Kids and youth from the urban middle and upper middle class
Positioning
A purely vegetarian dessert
Strength
Weakness
Opportunity
Threats
SWOT Analysis 1. It has world class manufacturing facilities providing excellent quality 2. Huge brand name locally in Gujarat providing a good base to expand 3. Has good reputation and experience for being in the industry for over 40 years 4. Huge variety in flavors of ice creams and candies 5. Good brand recall and a lot of variety to choose from 1. Less visibility and market share across the country because of major players in the industry 2.Stronger competition stifling its growth 3. Brand visibility lower than other major players 1. Improve distribution network across India and gain market share 2. Venture into other dairy products so as to compete with other brands 1. Threat from the existing competitors as well as local ice cream brands 2.Most people are not really brand conscious, so loyalty might be an issue
My product features, attributes, range & USP As a new entrant, we have to create new innovative products to differentiate from conventional markets
Branded Products for Market leadership Niche brands for identification and demand creation of every flavour India having highest number of diabetic patients, we shall make diabetic friendly ice creams We shall make smoother & fat free ice creams, cholesterol free and trans fats free for healthy heart. We shall make purely vegetarian products to capture all markets
Products for all age groups and demographic areas
We shall make over 50 flavors for children rather than conventional orange, mango, choco, strawberry flavors. Our display board shall be as follows:
Low Cholesterol and fat free products for adults and seniors Mass Brand Products for rural as well as urban markets
Great USP for product range Since our products would be designed for all age groups, for both rural as well as urban markets and also being fat free and low on cholesterol, we shall have a typical USP for our products that will associate it with these attributes. Our USP shall be TASTY BHI…..HEALTHY BHI….SABKE LIYE…ICE CREAM !!! Our slogan shall be
I scream, you scream, we all scream for ice cream! Come to your very own customized ice cream parlor
Various Stages Involved in Product Marketing Product Conceptulization
Product storage & distribution
Product marketing & sale
Market Survey & Customer Needs
Product Development
Product Packing, Transportation
Market feedback
Product Manufacture
Product Development
Government, regulatory & voluntary compliances standards There are certain specific regulatory compliances for manufacture and marketing of any product These pertain to license as well as certifications Key requirements consist of Approved plan lay out for manufacturing, testing, packaging, transportation, storage & distribution Government approved location, construction, plant machinery and equipments Compliance to international food grade certifications during each of the above steps Stringent quality control and environment like HACCP (Hazard analysis and critical control points)
Total Productivity Management (TPM)& ISO (International Organization for Standardization) certifications, ISO 14001 (Environmental Management), ISO 18001 OHSAS ( The Occupational Health and Safety Advisory Services)
Product manufacture, logo, label, packing
Our ice creams shall boast of world class standards in area of product quality. Every batch of ingredient goes through a stringent quality control before taken for production. The quality standards are in consonance with international norms, and no effort is spared to ensure world class product reaches the hands of the end users. Our Plants are ISO 9001:2008 & ISO 22000:2005 and HACCP Certified. Our packaging shall be as per ISI and FDA standards for best hygiene
Yo Yo Ice Cream Manufacturing Plant
Ice Cream Logo
Key Products & Packaging Designs
Yo Yo Cornetto
Yo Yo Ice Cream Cup
Yo Yo Chocolate Cup Vending
Yo Yo Ice Cream Candy
Yo Yo Yogurt Cup
Yo Yo Ice Cream
Yo Yo Strawberry
Yo Yo Choco Yogurt
Marketing Plans
Marketing shall be done thru whole sellers as well as retailers Whole sellers shall be appointed for each district who will supply to small retailers Exclusive Ice cream parlors shall be opened in large shopping complexes On the outskirts of towns, vending machines shall be installed similar to bank ATMs Each sale outlet shall have product display with prices and product weight In urban cities, exclusive store shall be opened with proper seating plan where ice creams shall be served on the table
Yo Yo Ice Cream Parlor Display
Yo Yo Product
Yo Yo Ice Creams - Exclusive Store with proper seating plan Product Promotion
Free scoops shall be given to customers for tasting and decision making. Free replacement when children dropped their ice-cream. Children under 13, registered with the school ID will receive free ice creams on their birthdays. Promotional campaign shall be run on television every alternate month for 1 year Company will Associate with social causes by holding an Annual ‘free scoop night’ A tie up with a market leader in soft drinks or fast food chain can also be considered Created positive image of the company as socially responsible organization. All packaging shall be food grade suitable for children of all ages Free home deliveries shall be opened up after 6 months of product launch Online order booking web store shall be opened after 1 year. Orders for a minimum of Rs 200 shall be delivered free of delivery charge
Product Pricing The products shall be fairly priced with complete transparency to business associates like Customers Whole seller
Retailer Franchisee Profits shall be shared with business associates and surplus if any shall be used for new product development and their test marketing 1% of profit shall be shared with a recognized charitable institution of repute
Product transportation & storage Ice creams being frozen food product, have to be invariably manufactured at freezing temperatures, this also applies to product transportation in refrigerated vehicles and stored under refrigerated conditions until finally sold. All operations related to product handling must conform to food grade standards like ISI (Indian Standard) or FDA (Food & Drug Administration – USA)
Conclusion:
Ice cream markets in India are quite different than western world. Not much focus has been made on rigorous marketing & sales promotion. There have been deficiencies in branding – there are no super brands in this segment. The product having short shelf life needs extensive care during manufacture, packing, transportation under refrigeration, storage and quick turnover being a food product.
References: ISO Standards HACCP Standards OHSAS Standards
