MARKET ANALYSIS REPORT

ON
ICE CREAM INDUSTRY

SUBMITTED BY
KANISHKA
MEHROTRA CLASS XII
–E
CONTENTS
S. No. Title Page No.
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:

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 2 nd 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
2.Excellent advertising and visibility
Strength
3.Good product distribution and availability
4.Lots of flavors and varieties available
Weakness 1. Food products have a limited shelf life
Opportunity 1.Better and newer flavors
 1.Threat from existing ice-cream brands
Threats
2.Local Kulfis

Amul Ice Cream

Parent Company Amul

Category Ice Cream

Sector Food Products

Tagline/ Slogan Real Milk Real Ice-cream

Premium Ice Cream made in various varieties and
USP 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
3. Amul is one of the most respected top-of-the-
Strength
mind brands
4. Also launched probiotic and sugarfree
icecreams

5. Offers over 200 products across India

1. Growing competition form international and
other brands means limited market share
Weakness
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
USP customers
STP
Segment Icecream for Quality conscious kids and adults
Kids and youth from the urban middle and upper
Target Group middle class
Positioning A purely vegetarian dessert
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
Strength 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
Weakness
2.Stronger competition stifling its growth

3. Brand visibility lower than other major players

1. Improve distribution network across India and
gain market share
Opportunity
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
Threats
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
Market Survey & Customer Needs Product Development
Product
Conceptulization

Product
Product storage & distribution Product Packing, Transportation
Manufacture

Market feedback Product Development

Product marketing
& sale

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
(InternationalOrganizationforStandardization)
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 Candy

Yo Yo Ice Cream Cup Yo Yo Yogurt Cup

Yo Yo Chocolate Cup Yo Yo Ice

Cream Vending
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 Yo Yo

Product Display
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