This action might not be possible to undo. Are you sure you want to continue?
companies producing ice cream in big factories to some single family which are producing ice creams in small factories. For example, in India, people used to eat big brands of ice creams and also eat road side ice creams which are made only from ice. It is analyzed that from the total Indian ice cream market only 30% of the market is organized and this shows the fragmented behaviour of the Indian market. There is no monopoly of one company which is deciding the moves of all the market, but there are many international and domestic firms with their respective market share. Ben & Jerry has analysed the Indian ice cream industry in the pattern of porter five forces model given by Michael Porter (Appendix-1). The five factors are: Threat of new entrants: In ice cream industry firms compete each other on the basis of product differentiation by offering it¶s products to masses as well as to premium segment. With ice cream product, the switching cost of consumer is low. The threat from new players in the market is high because the manufacturing process is simple and not more costly. Powers of buyers: For ice cream manufacturing companies, the main supply chain members are retailers, which buy in large quantities and pushes the products to end consumer. There is high power of channel members and in case of individual consumers power of buyers will also be high as they can go for different ice cream brands. Power of suppliers: Quality is the supreme factor. In India, the agri -business is still not fully developed and is in developing stage. The concern for dairy producers which are now going for ice cream manufacturing is very less. So, the power of suppliers is low. Availability of substitutes: To make the tongue sweeter there are many alternative products like different sweets, Kulfi and Faludah. Kulfi is a traditional desert which is prepared by using cre am and Faludah is having rice noodle with flavours and are low in price so there is high pressure on ice creams as consumer can go for substitutes. Competitive Rivalry: There are some big companies in Indian ice cream market with many emerging companies and new companies trying to come in the Indian market making high competitive rivalry. Several multinational companies like New Zealand natural ice creams are started serving in Indian market. There are domestic players also which are emerging in this sector like Saras ice creams in Jaipur and Nirula¶s ice cream in Northern region of India. Advertising expenses also have increased as companies are advertising more to increase their market share (Elong et al, 2005). After analyzing the Indian ice cream market , with the help of porter model, it is clear that the ice cream market is having features of monopolistic market. Amul with it¶s ice cream product has to compete in this monopolistic type of market. Following are the features of monopolistic market that also justifies that amul ice creams are in monopolistic market. Many sellers and buyers: In monopolistic market there are large number of buyers and sellers. No individual seller can set the price of the total market. In india the consumers of ice creams are also very large. In Indian ice cream industry there are many players like Amul on the top with 38%, Unilever with 9% of the total
I suggest that amul should follow the following growth strategy in southern India. Amul sets up different ice cream parlours in the country. Arun ice cream came up with exclusive franchise parlours which were selling ice creams of Arun only.(Amul. 2008). Baskin Robbins. Amul is now adopting the aggressive strategy in their marketing and trying to make more direct relationships with the customers. Advertising plays important role for companies in this market. New firms also can easily enter the market as manufacturing of ice cream is not much costly and there are no government regulations. According to R.market. states that the company uses pure and fresh milk to produce ice creams. According to current strategy. designed by FCB-ulka.S. Amul do not spend more on advertising for their ice creams in southern India. metro dairy. hatsun agro in south India. Amul also have to open more of ice cream parlours in southern India as they have in northern India (Hatsun. Amul is also increasing it¶s number of ice cream parlours from 800 to 3000 and also increase in amul ice cream retail outlets from 60000 to 70000 (financial express.2007). The firms which are not gaining normal profits in the market can easi ly go out. Current Strategies of Amul ice cream: . There are large su permarkets and grocery stores which purchases the ice cream in huge quantity from these companies to sell to individual end consumer. Non Price differentiation: In monopolistic market.5 billion dollar figure. Amul always comes up with different flavours and sizes in it¶s ice cream. Freedom of entry and exit for firms: In ice cream industry. Amul can come up with more of ice creams like different variants of faludas. 2007 ). Future strategies: As a management consultant. as it is in northern India and should target to increase the reach in South India by the year 2010. (rediff news. the established firm can easily enter in the market with the new product using it¶s existing channel distribution. Amul had never spent more than one percent of the total received revenues on advertising and marketing (Deccan herald. Like south Indians take coconut chutney in their meals. Amul should introduce more of it¶s .2007 ). Currently. Amul¶s strength lies in consistent good quality. and to compete in the market companies have to innovate their product as the demand otherwise will decline. Arun ice cream do not target a particular consumer segment but. Sodhi who is chief general manager in GCMMF. so to compete with arun ice creams. to increase the preference of consumers towards Amul. amul can introduce some coconut flavour ice cream. Other companies are vadilal. South Indians mostly like rice in their meals so. By the year of 2010. amul is not that popular. In South India Hatsun Agro¶s Arun ic e cream gives a very strong competition to Amul. so there is an opportunity of more advertising and public relationship to get the maximum reach and grab more market. 2009). For success in Southern India. Considering only south India.Amul launched it¶s ice cream with a punch line µreal milk real ice cream¶. as a firm sets prices of their products according to the market. Downward sloping demand curve: In ice cream industry as for all ice cream products the basic raw material is milk. Amul¶s target is to open 10000 ice cream parlours and to achieve 2. trust and relevance in their products. The firms compete with each other by giving offers and pack discounts to their customers. Amul will soon launch campaigns based on mass media advertising.
Conclusion: In the end. United States based companies like Blue Bunny pulled out from market as of high excise duties and low demand. New Zealand natural ice cream has opened it¶s outlets in Haryana.2007). They are Frolic foods company. Emerging player in this field is µSaras¶ ice cream based in Jaipur (Rajasthan). But.2007) (Appendix-1). Amul can go for growth by external expansion like.existing sugar free range of ice creams and fitness candies in south India to target health conscious consumers as south Indian people prefer more of nutritious level in their eating habit (cultural india. When introduced in Delhi market in 2003. On point of price amul always followed low pricing strategies for it¶s ice creams and giving best quality. (Das. New player in India which is vastly spreading it¶s reach is New Zealand natural ice cream. as discussed earlier. 2008). Maharashtra. product of National Dairy Development Board gave a strong competition and also Hatsun¶s. For manufacturing of all these products amul has to set up more factories in Southern India. it has already build a strong image in Indian market. P. so. And Baskin Robbins also first reduced it¶s outlets and also tried reducing prices. The following companies are emerging in Indi an and in international market. which was already prevailing in flavour of Mother Dairy ice cream. Today. merger with raw material suppliers at initial level to establish market and then giving contract to retail stores and supermarkets to reach to individual customer. Amul ice cream can increase market share and by the year 2010. which is renowned in the world a nd now spreading it¶s reach in India. Now. There are very few big players and rest all are small players which makes the total market share. all are Indian based companies which manufactures ice cream in basic flavours and rich flavours(Indian industry 2008). by above discussed report it can be analy zed that amul is in a monopolistic market and by the proposed strategy amul ice cream can be on top in southern India too by the year end 2010. to reduce transportation cost. then comes vadilal with 7% and Mother dairy acquires 7% (livemint. Amul adopted the market penetration strategy. Market position and Market developments: To beat Mother dairy ice cream in Delhi and Northern Capital Region. Arun ice -cream available in south India. Hindu business line . nothing worked and today the number of outlets is very low (Roy. As.2009). Punjab. By. the above proposed strategy.2004). Rediff Money. . vertical integration ie. Rupin¶s company. having milk products with ice crea m parlours and Nirula¶s is primarily a regional player based in Northern India and µtop n town¶ ice creams and µAll Naturale parlours mainly in central India. there will be many MNC¶s and other big players. Amul has to retain it¶s top position in the market. Market share: The Gujarat Cooperative Milk Marketing Federation states that all Amul range of ice creams builds 36% of market share following by 8% of Hindustan Unilever¶s kwality walls.D. Hatsun Ago with it¶s product Arun and Baskin Robbins both forms 4% of the market each and 3% is contributed by Kolkata based Metro Dairy . comes to some companies which melted in Indian ice cream industry. the Indian ice cream industry is highly fragmented. Rajasthan and West Bengal (New Zealand Natural. the fierce competitor of Amul is Hindustan Unilever¶s kwality walls. Feroze Foods &Flavours and MTR foods. Competitors In the race. By.In Indian ice cream industry which is in growing stage. these strategies Amul as well as whole Indian ice cream industry will be in profit. amul mission is to cater best quality ice cream.
Amul is also targeting modern trade channels to promote their brands even during the winter (Srinivasan L. India today. And Mahurkar U. Financial Express. µINSIGHT¶ in May-June 2002 .800 to 3. All Amul products sales turnover for 2006-07 is Rs. To gain a competitive edge.D. . 52554 million with growth of 22.9 percent (Amul . In the fiscal year 2005-06.2001). All plants of Amul ice cream got ISO 9000 -HACCP certificate and soon will get ISO 22000 certification for it¶s plants .cream. Amul is also marketing ice cream mix which Hindustan Unilever does not.2008).210 -crore and in 2006 -07 company achieved the volume of 42 million litres making turnover of Rs.which resulted in 35 percent of market share worth of Rs. (Goyal M.(Amul ice cream .1 award in quality by a monthly consumer magazine.Amul Ice cream has reached to about 34 million litres of ice cream which made the company¶s value Rs. 2008).2008). Amul ice cream got No.000 and kiosks in 2008. hence gaining first mover advantage. Amul is planning to extend the number of µAmul Parlours¶ from 1.2007).. (Amul ice cream. Market development: Amul was first to launched the sugar free ice cream to make Indian society healthy .2008). Hindu business line.450 crore in period of four years.270 crore in ice cream segment with an aim of getting turnover of 200 million litres by 2010 (Das.. also by providing party packs.tri cones in which a cone is having three flavours and µstamina¶ candy which is India¶s first fitness ice . 42778 million and for year 2007-08 it was Rs.
Appendix-1 market share amul 36% kwality walls 8% 31% 36% vadilal 7% mother dairy 7% 4% 4% 7% 3% 8% 7% hatsun agro product 4% baskin robbins 4% metro dairy 3% all other small players 31% .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.