BUSINESS ORIENTATION

PROJECT

PRESENTED BY: SHRUTI GUPTA

(Under the guidance of Mentor: Mr. Shubhendra Parihar)

MBA 2021-23

JAIPURIA INSTITUTE OF MANAGEMENT

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 ACKNOWLEDGEMENT

In preparation of my assignment, I had to take the help and guidance of some respected
persons, who deserve my deepest gratitude. As the completion of this assignment gave
me much pleasure, I would like to show my gratitude to my mentor Shubhendra
Parihar giving me a good guidelines for assignment throughout numerous
consultations. I would also like to expand my gratitude to all those who have directly and
indirectly guided me in writing this assignment.

In addition, a thank you to Professor Himanshu Mishra, who guided me in one of

sessions. I also thank Hindustan Unilever Limited for consent to include copyrighted
pictures as a part of my paper.

Many people, especially my classmates have made valuable comment suggestions on

my paper which gave me an inspiration to improve the quality of the assignment.

I would also like to thank Mr. Usman Mohmmad, Who is distributor of Kwality Wall’s
Lucknow. He helped me in collecting data.

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 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ………………………………………….4

2. COMPANY’S DESCRIPTION……………………………………..6
3. INDUSTRY OVERVIEW …………………………………...............
4. MARKET ANALYSIS ………………………………………………
5. MARKETING MIX…………………………………………............
 PRODUCT …………………………………………………...
 PRICE ………………………………………………………..
 PLACE ……...………………………………………………..
 PROMOTION ………………………………………………..
 PACKAGING ……………………………………..
 LABELING ………………………………………..

6. FINANCIAL PLAN ……………………………………………….....

7. SWOT ANALYSIS …………………………………………………..
 STRENGTHS ………………………………………………...
 WEAKNESSES ………………………………………………
 OPPORTUNITIES …………………………………………...
 THREATS ……………………………………………………
8. PHOTOS OF SOME PRODUCTS…………………………………
9. REFERENCE ………………………………………………………...
ANNEXURE …………………………………………………………

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 EXECUTIVE SUMMARY

Kwality walls was launched in 1995 as Hindustan Unilever Ltd. Master brand for ice
cream. With in-depth knowledge of the Indian market & Unilever state-of-the-art
technology. Kwality walls has been delivering superior quality product under its
international brands. Hindustan Unilever started by merging 6 existing ice cream brands
in the country & then launched kwality walls range of ice-cream & frozen desserts. The
kwality company is dedicated to the notion that people need to eat healthy, better
tasting foods. And by making our ice cream ,kwality uses only the fresh & delicious milk.
Companys mission is to add vitality to life. We meet everyday needs to nutritions,
hygiene & personal core that help the people feel good, look good & get more out of life.
Small scale growth & franchising strategy: The mission of the company( to
achieveprofitability, increase value to shareholders & create career opportunities) is
implemented through kwality walls strategy for small-scale business growth. It has
maximized profitability by initially starting small & slowly building an ice-cream business
over time.Ultimately, the success at the small scale required the company to shift its
corporate strategy toward the establishment of several franchised scoop shop
throughout the nations. As of 2008,there was approximately 598 scoop shop in India.
Brand loyalty: Developing brand loyalty is another strategic move to strengthen
competitiveadvantage. Kwality walls has made substantial effort to gain a favorable
reputation & image with buyers throughits frequent promotional campaigns (i.e. free
cone Days) donation to social causes & the use of eco friendly products. This strategy
has proven successful regarding buyer perception of cooperate reputability ranked
kwality walls first in the Social responsibility category. Pricing Strategy: Our pricing
strategy is to introduce the new products in the market at lowerprices. So as to create
the huge demand in the market & to compete with other competitors .As we come up in
the demand we will increase our prices & will provide more efficient affordable & tastier
icecreams. Cost cutting Strategy: Kwality walls eliminated several stock keeping units,
rationalized manufacturing infrastructure & brought it focus down to six mainline cities
only, where 60% of the ice cream market exists.. Market analysis: Ice cream is a
reasonable proxy for the universal food product. Its appeal is neither gender nor age
specific. It satisfies hunger, tastes good, makes the consumer feel good, and its fun to
eat. Consumers purchase ice cream for a variety of reasons. On festive or special
occasions it represents a special treat. Super premium ice cream, especially a foreign
brand, is akin to a status symbol that allows the purchaser to feel good about what
he/she has accomplished in life. When packaged in individual servings it is a convenient
way to respond to impulses and provides instant gratification. In many economically
developed societies the concept of a comfort food has taken root and grown. Comfort

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foods are those foods that one consumes because it makes the consumer feel good.
Culturally, the concept of comfort foods is a learned behavior. For example, in the US
when a child is hurt often times the parent will give the child a food product, generally a
sweet, to ease the discomfort. In western societies the number one comfort food for
both men and women is ice cream. After ice cream comfort foods become more gender
specific; in the US chocolate is number two for women while pizza is number two for
men. The concept of comfort foods in India is very much in an embryonic stage.
Economically, for many, food is still in short supply and nutrition is far more important
than feeling good about what is consumed.

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 COMPANY’S DESCRIPTION
Kwality Wall's is a company of Hindustan Unilever, the arm of Unilever in India. It is an
amalgamated brand name created out of two previously separate independent
companies that Unilever took over: Kwality of India and Wall's of Great Britain.

 Kwality, the original Indian company, was founded in 1956, and was the first in
the region to import machinery for the mass production and sale of ice cream on
a commercial scale. In 1995, in view of the growth potential of the frozen
confections market, Kwality entered into an agreement with Lever, and has since
been known by its current umbrella name. At the same time, other brands
acquired by Hindustan Unilever, such as Gaylord-Milkfood, were phased out in
favour of promoting the Kwality Wall's brand. This arrangement allows for local
production and sale of Wall's products that are popular in its home market, such
as the Cornetto cone, and to create local variations on others, such as the Feast
Jaljeera Blast. Kwality Wall's was ranked 464th among India's most trusted
brands according to the Brand Trust Report 2012, a study conducted by Trust
Research Advisory. In the Brand Trust Report 2013, Kwality Wall's was ranked
632nd among India's most trusted brands and subsequently, according to the
Brand Trust Report 2014, Kwality Wall's was ranked 382nd among India's most
trusted brands.

About product;
 ALL FORMATS
o Chocobar
o Cornetto
o Delights in a cup
o Delights on a stick
o Family packs
o Feast
o Fruit fun
o Kulfi
o Novelties
o Feast
o Fruit fun
o Kulfi
o Novelties
o Paddle pop
o Party packs
o Tubs

 ALL TYPES

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o Gluten free
o Indulgence
o Responsibly delicious
o Suitable for kids
o Vegan

 ALL FLAVOURS

o Butterscotch
o Chocolate
o Fruit
o Kulfi
o Other flavours
o vanilla

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 MARKET ANALYSIS
Originally known as iced cream, ice cream can be defined as a mixture of milk, cream, sugar
and other ingredients, that has been frozen into a soft, creamy delight  using special
techniques. It generally contains stabilizers like gluten which give the mixture a consistent
texture. Ice cream today represents one of the fastest growing food segments in India. A
recently released report by IMARC Group, titled  “Ice Cream Market in India: Industry
Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026”,  critically examines
the Indian ice cream market. The report finds that the market exhibited strong growth during
2015-2020. The healthy growth of the market can be attributed to numerous forces.
Population growth, rising disposable incomes, urbanisation rates, changing consumer
preferences, improved cold supply chain and growing deep freezer penetration are some of
the factors that are broadening the growth aspects of the market. Looking forward, IMARC
Group expects the ice cream market in India to grow at a CAGR of 17.3% during 2021-2026.

Market Breakup by Type

 Impulse Ice Cream

 Take-Home Ice Cream
 Artisanal Ice Cream

Market Breakup by Flavor

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  Chocolate
 Fruit
 Vanilla
 Others

 Market Breakup by Format

 Cup
 Stick
 Cone
 Brick
 Others

Market Breakup by End-User

 Retail
 Institutional

Market Breakup by Retail Distribution Channel

 General Trade
 Supermarkets/Hypermarkets
 Ice cream Parlors
 Convenience Stores
 Online
 Others

Performance by Regions:

 Maharashtra
 Uttar Pradesh
 Andhra Pradesh
 Tamil Nadu
 Gujarat
 Rajasthan
 Karnataka
 Madhya Pradesh
 West Bengal
 Bihar
 Delhi
 Kerala
 Punjab
 Odisha
 Haryana

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For each of the states, the report provides a thorough analysis of the current and
historical value and volume trends, market share of key players and market
forecast. Currently, Maharashtra represents the largest market, accounting for
nearly 14% of the market share. It is followed by Uttar Pradesh and Gujarat. The
competitive landscape of the Indian ice cream market has also been covered in
this report. Some of the prominent players operating in the market include
GCMMF, Kwality Walls, Vadilal, Mother Dairy, Hatsun and Cream Bell.

The study gives an in-depth analysis of the ice cream market landscape in India,
covering the current, historical and future trends for ice cream production along
with its prices. The report also offers SWOT, Value Chain and Porter’s Five
Forces analysis of the Indian ice cream market along with breakup by segment,
region, and an analysis of the competitive landscape. The study is based on both
desk research and multiple waves of qualitative primary research. This report is a
must-read for entrepreneurs, investors, researchers, consultants, business
strategists, and all those who have any kind of stake or are planning to foray into
the Indian ice cream industry in any manner.

The ice cream market was valued at USD 62.40 billion in 2020, and it is projected to
register a CAGR of 2.87% during the forecast period, 2021-2026.

The ice cream industry had suffered during COVID-19 due to supply chain disruptions
that impacted the ice cream sales. Also, a lot of people were avoiding ice cream as they
felt it may make them susceptible to COVID-19.

Further, due to the rising health concerns with regards to ice cream consumption,
consumers are now preferring ice cream products that are GMO-free, hormone-free,
additive- and preservative-free, dairy-free, low in calories, and organic and fat-free in
nature.

There is a rise in demand for premium ice creams, which will be one of the primary
factors driving the market growth. Premium ice creams have become a popular product
among health-conscious consumers due to the presence of high-quality ingredients and
a lower amount of aeration compared to regular ice creams.

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 ORGANIZATION & MANAGEMENT

This is the most important aspect of an organization.  It helps in Achieving Group Goals,
it arranges the factors of production, assembles and organizes the resources, integrates
the resources in effective manner. It directs group efforts towards achievement of pre-
determined goals. A good organizational structure will support a company’s mission,
and it will attempt to meet the needs of various customers. A business cannot survive
without management because management is its means of support. Organization and
management is concerned with acquiring maximum prosperity with minimum efforts. It
is essential wherever group efforts are required to be directed towards achievements of
common goals. 

Authority responsibility relationships are very important can be fruitful only when there is
a formal relationship between the two. For smooth running of an organization, the co-
ordination between authority- responsibility is very important. There should be co-
ordination between different relationships. Clarity should be made for having an ultimate
responsibility attached to every authority. Organizational structure is a network of
relationships in which the work is divided into units and departments. This division of
work is helping in bringing specialization in various activities of concern.

Therefore ‘kwality Wall’s’ have five departments, which are listed below

MARKETING
The Marketing Department plays a vital role in promoting the business and mission of
an organization. Market department has to be upto date to promote their product or
services, Nowadays best way to promote the product is online promotion.

SALES
The sales department helps in knowing the needs of retailers of the company and
customer, they go to field to know the actual siuation of the market.

FINANCE
Finance is important to an organisation as the firm has to know how viable it is and it
also helps in balancing the profit with costs. It is duty of finance department to maintain
enough funds for operations.

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OPERATIONS
Operations management is concerned with converting materials and labor into goods
and services as efficiently as possible to maximize the profit of an organization.

IT
IT department will basically work on the website and will handle all sorts of technical
glitch.

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 INDUSTRY OVERVIEW
Globally, ice cream is the most popular dessert. Since the industry is marginally capital
intensive, it is very competitive. In 2014. On the basis of product, the global ice cream
market can be segmented into impulse ice cream, take-home ice cream and artisanal
ice cream.

Indian ice cream industry is one of the fastest growing segments of the dairy or food
processing industry. India has a low per capita ice cream consumption of ice cream at
400 ml as compared with per capita consumption of ice cream of 22,000 ml in the
United States and 3,000 ml in China. With the improving cold chain infrastructure in the
country coupled with increasing disposable income and the changing lifestyle, the
sector has great potential for growth.

The ice cream industry in India generated revenue of more than USD 1.5 billion in 2016
and is projected to generate revenue of approximately USD 3.4 billion by 2021. Lately,
frozen desserts which are made out of vegetable oils have been eating into the market
share of ice cream. Key pIn India the ice cream industry is mostly regional and there is
a multitude of brands focusing on only one or two districts or in some case only one
state. There are very few national brands and the major reason behind slow growth of
the smaller players is the high perishability of ice cream products.layers offering frozen
desserts in India are Kwality Walls, Vadilal, and Cream Bell.

In India the ice cream industry is mostly regional and there is a multitude of brands
focusing on only one or two districts or in some case only one state. There are very few
national brands and the major reason behind slow growth of the smaller players is the
high perishability of ice cream products.

The report ‘A Study of India's Ice Cream Market 2018’ highlights key dynamics of the
global and India’s ice cream market. The growing opportunity in the sector has been
investigated along with the market drivers. The initiatives and performance of key
players including Amul (Gujarat Cooperative Milk Marketing Federation), Vadilal
Industries Ltd, Hindustan Unilever, Mother Dairy, Nestle and General Mills along with
the current market scenario has also been studied. The report contains latest industry
leader’s opinion.

Led by India and Thailand, Asia-Pacific is forecasted to see an increase of CAGR of

4.1% by 2022, specifically due to an expanding middle-income socioeconomic class
and a large youth population who enjoy and seek out novelties, especially Western-like.

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Specifically, the Indian market is expected to register the overall value growth of over 50
% from 2019 to 2022.

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 COVID-19

PROBLEM
Sudhir Sitapati, ED & V-P, foods and refreshment, Kwality Wall’s (Hindustan Lever),
and chairman, CII national committee on food processing, said the ice cream industry
was worst hit among the food industry as the whole year was a washout. The Covid
crisis has show us the weakness in our category and the need to change perception,
said Sitapati. Consumer confidence in the product is fragile and the industry would have
to come together to dispel the Covid myths, he said. The street vendors, who sold ice
cream on tricycles, were on the verge of starvation and needed assistance from the
company for survival, he pointed out. The challenge was to be able to keep them in
business through this difficult year, Sitapati said. Despite the high double-digit rate of
growth, the per capita consumption in India was low, he said at the CII Ice-Cream
Industry Conclave.

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The ice cream industry in India was projected to generate revenues of around $3.4
billion by 2021. But these targets look impossible in a post-Covid world. Industry players
say it was a washout year for them and there are no chances of any recovery this year.
Ice cream consumption has fallen between 60-80% in the country.
Brands that are largely dependent on the ice cream parlours to reach customers are the
most hit. Some recovery was seen in the retail store segment in June. But, ice cream
consumed at home cannot make up for the lost market as 60-65% of ice cream in the
country is consumed out of home. Also 50-60% of the ice cream is consumed is after 5
pm which has got affected with shops shutting down early across the country. The silver
lining for the ice cream industry has been the opening up of the e-commerce channel
and home delivery of ice cream.

SOLUTION
Kwality Wall’s started home delivery system post lock down by collaborating with
Swiggy and Zomato to increase their sale.

Amid lockdown 2021 E-Commerce contribute 20%-25% business base of year 2019,
reason behind the E-commerce sale is customer FOS ( feet on street) is very low, sales
trend is getting changed from offline to online.

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 SWOT ANALYSIS
The SWOT analysis provides us with an excellent opportunity to examine and evaluate
the internal strengths and weaknesses of ‘Kwality Wall’s’. It also allows us to focus on
the external opportunities presented by the business environment as well as potential
threats. Next sections explain major strengths, weaknesses, opportunities, and threats
that ‘Kwality Wall’s’ should be aware of.

STRENGTHS: -
‘Kwality Wall’s’ has a valuable inventory of strengths that would help it to be successful.
These strengths include: -

 Clear vision of market needs. We are truly aware of the customers’ needs. We
are completely familiar with the latest technology.
 Adequate availability of raw materials
 Strong brand name
 Excellent advertising and visibility
 Good product distribution and availability
 Lots of flavors and varieties available
 High consumer retention rate

WEAKNESSES: -
Strengths are valuable, but it is useful to realize the weaknesses. We have identified
some of our weaknesses: -

 Food products have a limited shelf life

 Comparatively costly
 Seasonal availability of food which required as raw material

OPPORTUNITES: -
Kwality Wall’s strengths and the awareness of its weaknesses will help it capitalize on
emerging opportunities. These opportunities include: -

 Changing trends
 Better and newer flavors
 Participation with a growing industry
 Wellness awareness amongst consumer
 Proper utilization of available resources to decrease the per unit cost

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THREATS: -
Threats that ‘Kwality Wall’s’ should be aware of include: -

 Changes in the business environment that might reduce sales.

 Consumer’s behavior changes due to economic downturn.
 Cut throat competition- A number of hard core competitors are present in the
market(like Amul , Metro, Verka , Nestle, Motherdairy, etc It is concern for the
company as there are wide array of brand of competitors
 Global warming: By which normal temperature increases gradually, its leads to
problem that product become melt very quickly when it served
 Scarcity of raw material

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 MARKETING MIX

Marketing Mix of Kwality Walls analyses the brand/company which covers 4Ps (Product,
Price, Place, Promotion) and explains the Kwality Walls marketing strategy. There are
several marketing strategies like product/service innovation, marketing investment,
customer experience etc. which have helped the brand grow.
Marketing strategy helps companies achieve business goals & objectives, and
marketing mix (4Ps) is the widely used framework to define the strategies. This article
elaborates the product, pricing, advertising & distribution strategies used by Kwality
Walls.

 Product Strategy
Kwality Walls is a popular ice-cream manufactured by HUL in India. Kwality Walls
is known for offering a wide array of frozen desserts in its marketing mix such as
Ice creams and Kulfi. Kwality Walls also sells such popular brands such as
Cornetto, Feast, Fruttare, Paddle Pop, Kulfeez, Cassata, Carte Dor, Creamy
Delights and Magnum. Its ice creams offer delicious fruity and sweet flavours to
suit the ever-evolving Indian taste pallete. Some of Kwality Walls’ entry level ice
creams include the kulfeez, which has a distinct creamy flavour resembling that
of the very India ‘kulfi’. Kwality Walls Cornetto is a cone ice cream with a solid
block of chocolate at the bottom and a crusty top with almonds and other nuts.
Kwality Walls Magnum being its flagship ice cream offers a Belgium flavour to its
chocolate.
Some pictures of product are shoen below:-

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 Price/Pricing Strategy
Kwality Walls is a leader in the Indian segment but still faces stiff competition.
The 200 crore ice cream brand continues to thrive in the market despite strict
competition from Mother Dairy and Amul is because of its aggressive pricing strategy in
its marketing mix. Kwality Walls caters to a wide range of customers with varied pocket
sizes. At an entry level its kulfi and small chocobar help it derive the volumes required
for sustenance. While at the top of the frozen desserts line sits the Kwality Walls
Magnum which is a distinct Belgian and truffle taste and therefore commands a premium
in the market. Its ice creams start at a modest Rs 15 all the way upto Rs 80 for the
discerning upmarket customer. The Kwality Walls Cornetto sits in the middle of the
desserts range priced between Rs 20 and Rs 40. This enables it to capture a wide range
of audience and dominate every market category they are present.

 Place & Distribution Strategy

Kwality Walls produces and sells frozen desserts & ice-creams all over India as
well as Bhutan, Nepal, Malaysia and Brunei. Kwality Walls benefits from its very
widespread retail and distribution network. This helps it penetrate the Indian
subcontinent with an ease none of its competitors can. Kwality Walls’ wide
distribution also helps it achieve economies of scale, thereby reducing costs of
each ice cream sold through a reduction it logistics costs. Also its dealer margins
are greater for remote and far flung places than in cities, providing an opportunity
for even further expansion and penetration

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Kwality Walls ice-creams are available through a well established distribution
system of HUL, and can easily be bought at grocery stores, supermarkets,
restaurants, hotels etc.

Other than that they sell icecream on cycles so they can reach every corner of
city.

Some of the pictures of cycles are shown below:

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  Promotion & Advertising Strategy
Walls uses all media like billboards, online, print media and TV commercials to create
brand awareness. Kwality Walls has tied up with coupon companies online and gives out
free or discount coupons for increased sales Kwality Walls has and continues to use
creative marketing and promotional strategies to further the brand name and message.
As a part of its marketing mix strategy to advertise its brand, Kwality and promotion. By
utilizing the popular appeal of actors such as Kareena Kapoor and by aggressively
launching other ad campaigns over social media, Kwality Walls has ensured that its
name continues to be synonymous with ice creams in India. By removing the word ‘ice
cream’ from its ad campaigns, as directed by Hindustan Unilever’s marketing experts it
wants to been seen more as a cold desserts manufacturer than an out and out ice cream
company, thereby making the selling umbrella broader and making space for the
accommodation of new products in the coming years. Hence, this shows the marketing
mix of Kwality Walls ice cream brand from HUL. Promoting the brand will help us in
different ways listed below: -

 Increase brand awareness

 Provide appropriate information
 Increase Customer Traffic
 Build sales and profits

Not only these but promotions will also help the company to introduce products easily in
the ever-so-competitive market. Therefore, we really need to analyze perfect channels
for the promotion of our brand. This will include social media (social media influencers
will be a predominant part of this).

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PACKAGING: -

This aspect is as important as the product itself. Packaging of the product

communicates many things, from what the product can do for their customers to your
company’s values, because it's a crucial marketing and communication tool for the
business.

Packaging should serve the following basic functions: -

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 FUNCTIONS OF PACKAGING

PROVIDE
CUSTOMER
PROTECT CONVENIENCE PROMOTE
THE THE
PRODUCT PRODUCT

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1. PROTECT THE PRODUCT: -

The basic function of packaging is to protect the contents from

damage,leakage, ,watering and so on. Packaging helps in the protection of the
contents of the products. Seasonal fluctuations in demand may be smoothed out
through packaging. Kwality Wall’s has bags which can save icecream from
melting for more than one or two hours.

Pictures are shown below of bag:-

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PHOTO’S OF SOME PRODUCTS

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