Executive summary: Kwality Walls , a major player in the Ice Cream market the world over started its

Indian operations in the year 1995. With few competitors in the organised market it maintained a healthy market share and remained highly profitable through the 90s. With rising incomes , changing tastes , rejunivated emerging competitors Kwality walls started losing its monopoly starting early 2002. However it remains a major player in the urban market. Competitors like Amul ,Vadialal and Scoops followed different strategies to increase their market shares. While amul focussed in distribution ,visibility and low prices Vadilal focussed on providing variety to the consumer. Scoops was the first to gauge the rising popularity of Speciality ice cream parlours and established a chain of stores called as “Temptations”. The net effect was Kwality Walls being relegated to a market share of just 14% compared to the market leader Amul 35%. In order to revitalise the brand Kwality Walls needs to concentrate on increasing its POS in the urban markets and look to stamp its presence in the rural markets where its presence is negligible. Overtime KW has been losing its connect with children and it mostly emerged as an adult brand. It needs to reconnect with this important segment. In addition to cater to the increasing popularity of parlours and speciality stores KW should increase the presence of its Swirl stores. Major surveys indicate only 20% of the people are aware of these parlours.KW also needs to position itself as an alternative to sweets which forms a major dessert in the country. By doing so it would not only capture market share it could also gain new markets. It also should look to increase its portfolio of flavours and introduce low end versions at a lower cost in the rural markets. In addition the company can also look to introduce sugar free and stamina versions as this is emerging as a major market. In sum the company is looking to increase its share in the market to atleast 25% in the next two years apart from establishing new markets and positioning itself as an alternative to dessert rather than a secondary dessert.

in the branded ice cream market. followed by Kwality Walls at 14%. On the basis of flavours the market today has a . In 2008-09. The branded market at present is 100 million litres per annum valued at Rs.Current Market Situation: In 2009. growing at a rate of approximately 12%.6 billion in terms of retail value or 15 billion litres in terms of volume. The ice cream market growth picked up after dereservation of the sector in 1997.000 crores. Amul held the number one spot. Vadilal at 12% and Mother Diary at 8% Indian Ice Cream market can be segmented in three different ways. Coming to India. 2. The grey market consists of small local players and cottage industry players. with a market share or 38%. the global market of ice creams was pegged at $61. Of this. Ice-cream market in India: The ice cream market in India can be divided into: the branded market and the grey market.128 million litres in terms of volume. the Asia-Pacific ice cream market was worth $13 billion in terms of retail value and 5. namely on the basis of flavours. the Indian ice cream industry is currently estimated to be worth Rs. on the basis of stock keeping units / packaging and on the basis of consumer segments. 800 crores.

which together account for more than 70% of the market followed by butterscotch and other fruit flavours. Channels such as Mobile Vending Units have been increasing year on year to reach out to a larger set of consumers. a significant part of the revenue comes from corporate sales. most brands have small regional operations with production facilities located near major markets. Kaju. mango. The rest comes in from retail and exports\ . wholesaler and retailer.Pista. consumers also have the choice of trying out varied product offerings from different brands to keep them excited.Draksh etc. dry fruit flavours traditional flavours like Kesar. Strawberry and chocolate. Besides selling their products through kiosks. followed by 30% in the north and 20% in the south. The market for organized sector is restricted to large metropolitan cities. The ice cream industry has traditionally grown at a healthy rate of 12% year-onyear. About 55% of the business is contributed by exclusive ice cream parlours and kiosks while 30% is from corporate or food service sales. In small towns and villages. kulfis / ice creams made by small / cottage industry are popular. In rural areas. chocolate. Almost 40% of the ice creams sold in the country are consumed in the western region with Mumbai being the main market. strawberry. Besides. The growth in Ice cream industry has been primarily due to strengthening of distribution network and cold chain infrastructure. National brands may opt for cold-storage facilities in major consumption centers or acquire smaller production facilities close to the retail outlets. butterscotch a number of fruit flavours. Ice cream distribution in India usually involves a distributor.number of flavours like vanilla. The market is totally dominated by Vanilla. there are thousands of small players who produce icecreams / kulfis in their home backyard and cater to the local market. parlours and push carts. Because of chinks in the cold storage chain.

Price sensitive customers are lost here. ➢ Has a wide network of exclusive parlours catering to ice creams and other Amul products in off season thereby sustaining itself in those periods. .COMPETITOR ANALYSIS: Amul : ➢ Currently the market leader holding a share of 38%. Sample is given below. ➢ The only major player in the industry to have a home delivery option. ➢ Rebranded itself in the early 2000s and emerged as a major competitor to Kwality walls. ➢ Has a wide variety of choice in flavours and the type of ice cream. ➢ Has an extensive distribution network spanning the length and breadth of the country in cohesion with other Amul products. ➢ Priced marginally lower in most markets. ➢ The only player to have a sugar free version of its products.

Although not a major success it gained a lot of visibility in terms of television and media reports as well as word of mouth. . ➢ In addition has a total of 74 varieties of Ice creams. ➢ Also has a version of Ice cream called probiotic Ice cream catering to the health conscious.➢ Research indicates a marginally better performance of Amul with regards to availability and taste in major flavours. they introduce new flavours for different segments of customers throughout the year. ➢ Also started the first ever fitness candy in India. However Kwality Walls performs better in speciality and premium ice creams. ➢ Has a major presence in rural India unlike Kwality walls. ➢ Has an emotional connect with most Indians as an Indian brand. ➢ Has plans to open 20000 new outlets across india with a major chunk being in north east which is still a relatively untapped market. This is a major differentiator. Vadilal: ➢ Have a market share of 18% across India. ➢ Have a chain of ice cream parlours called ‘Happiness parlours’ where customers can relish their complete range under one roof. ➢ Offer the widest range of ice creams in the country with 120 plus flavours. This attracts people in the age groups of 30-60. ➢ To meet with the consumer demand on regular basis.

The following are some of the strategies suggested. ➢ As major surveys indicate rural consumers are extremely price sensitive hence look to have a de centralised pricing policy and if required introduce lower variants of the present products. display sign boards and other promotional activities that helps in boosting business. Sponsoring events and print media. ➢ Review the price points of products where there has been a decline in the sales. As such there is a need to revisit the price points as far as Kwality walls is concerned.At the same time the share of Amul has risen by 20%. Marketing Strategies: Price: Traditionally Kwality walls has always demanded a price which is slightly higher than its major competitors.➢ Have a Cold Chain network compromising three manufacturing plants. Consider for example Cornetto which is one of the major selling ice creams charges a price of 35 rupees. This worked well until early 2000s when Kwality Walls was the single most prominent player. Functions. ➢ Have a strong sales network team which generates sales through retail outlets. However the trend has been changing with the entry of other players and the rejunivation of other players such as Amul and Vadilal. Hotels & restaurants. Gauge the impact and then decide on the future course of action for the other products as well. . ➢ Promote their brand through various ways such as Advertisement.Most ice cream consumers are price sensitive which would result in a loss of sales which was seen in the case of Cornetto where its share has fallen from 60% to 42%. A similar ice cream can be bought for 22-25 in Amul . As shown in the competitor analysis they have come out with major changes and in most cases completely rebranded themselves.000 retailers. ➢ Follow the given distribution network: Plant . institutions.C&F – Distributor – Dealers – Consumers ➢ Provides distributors with deep freezers for storage of ice creams. more than 500 distributors and over 40.

Amul currently has 70000 retail outlets across the country compared to 35000 of Kwality Walls. Increasing availability in urban areas is something KW must seriously look into. Kwality Walls need to revisit the the idea and ensure success as this has become a major lifestyle trend. Another factor here is that Amul is spread across the country wheras Kwality Walls only has presence in the major 23 Towns and Cities in the country apart from a negligible presence in the rural sector. . Baskin Robbins had similar problems but they stayed on and are now experiencing huge profitability. However it has not been able to translate it to its advantage because of certain reasons. Kwality Walls did toy with the idea of similar retail stores in India as well. This would result in a lot savings .A major change that has taken palce in the market in the last decade has been the opening up of speciality stores and parlours. Amul takes advantage of its extensive network while KW has not been able to.Its major competitor Amul too has a chain of parlours across the country. part of which could be transferred to the customers.Kwality walls should look to leverage on the extensive distribution network of HUL which it currently is not using to the fullest extent possible. Swirl though successful in major areas hasn’t been taken up on a more extensive basis by Kwality walls. It is now a major player in the south which was earlier its lowest market. Most major surveys indicate a 65% initial recall for Kwality walls compared to meagre amounts for its competitors. It is now expanding similar stores in the west starting with Mumbai. For example Scoops Ice cream which had a market share of 15% in the early 2000s was the first one to gauge these changes and established a chain of speciality ice cream parlours named “ Temptations”. Most of the premium catergory sales take place in the Urban areas and this is the major market for Kwality walls. It catered to the at that time newly emerging ultra premium segment and also the premium segment. Ice cream is mostly an impulsive buy in most cases and as such the distribution and availability plays a huge role in such buys. Railway stations are a major source of sales which KW has been ignoring thus far. Place: Kwality walls is one of the most visible brands in the ice cream industry.➢ If cost cutting is not possible in the present scenario . Scoops now sees the fruits of that investment.In addition to Temptations there is also the presence of baskin Robbins . There are only 85 Swirl Outlets in the country .Italian Gelato and Nirula which is adding to the woes of Kwality Walls. It started a chain of parlours called as “Swirl” which has been successful in other countries but not in India wheras other similar kind of parlours have been successful. It isn’t available as extensively as other competitors. In the survey that we have conducted and normal research KW isn’t available as extensively as Amul is.

The users can log on to Amul website and get the ice cream of their choice delivered at their door step free of cost. .Another feature Kwality walls should seriously consider is the option of Home delivery which has been successfully implemented by Amul.

Advertising has been the mainstay of its promotions most of which is through Television Ads. . Both the campaigns did well with the youth. All its ads and campaigns have been aligned towards them. Kwality Walls has always focussed on the Youth as its main target segment. They have used Cornetto to heavily connect to the segment. Advertisements in print media and on hoardings come a close second. The blind date campaign gave the consumers a chance to go on a date with celebrities and the latter awarded cash points that could be redeemed for gifts or articles.Promotion: Kwality Walls has been a heavy spender on advertising throughout since it entered the Indian market in 1995. Campaigns such as Cornetto Blind Date and their association of Cornetto with Oxigen are such examples of the same.

Walls can have dedicated online events and contests that would increase awareness among consumers. in rural locations the company faces a identity crisis. Cashing in on the growing . Hence Kwality Walls needs to target them using exclusive tie ups with schools. Hence. Walls needs to promote to negate this belief and assure the consumers of it being health friendly given that urban people are increasingly becoming health conscious. Kwality Walls firstly now needs to focus on the kids segment. The new generation is tech savy and spends a major part of their time on Social Networking sites such as Facebook and Orkut. Holi. Ganesh Chaturthi and others could work well in the favour of the company which would be seen as a company that understands local flavour and sentiment. While Kwality Walls has a good visibility in the urban areas. Uploading periodic product launches and details on the website would help the product to reach to greater number of people. This pattern needs to be changed. colleges and having sales promotions at malls. Not only would consumers’ apprehensions reduce but also walls would gain the first mover advantage. Supplying ice creams on major occasions such as Diwali.Ads should be made portraying it as a all season delicacy which can be had anytime. etc where in consumers could be made aware about the same will work in their favour. People here prefer to go for Amul or Vadilal rather than Walls. theatres. Ice creams till now have been thought to be a delicacy that is eaten normally as a desert or in summer time. theatres and parks where most kids are expected to visit. Major consumers of ice cream form a part of the urban market. Coming up with sugarfree alternatives would be a good option. Hence. Either people are not aware of the brand or it is perceived to be too costly. stations. Setting up live kiosks at airports. 50 % of the sales are on impulse and can be attributed to kids and youth while family sales contribute 35% and parlours manage a 15% share. Walls needs to produce some special products for these areas and come up with Below the Line activities to increase consumer awareness in rural locations.Ice Cream has traditionally been thought of as a item that is heavy on calories. malls.

This sector is led by Amul and other local dealers. Lower versions of present products might also work. Hence. Amul has successfully launched its sugar free version and has been clocking impressive sales figures. This will have a huge impact on the overall share in the market in the long run. By entering the rural markets as well KW can gauge the performance of its new products and also steadily increase its share in the market in the long run. Amul with its tag like is perceived to be the taste of India. Vodafone did it successfully with ZooZoo. this is too large a market to be ignored. Even Amul has over 100 varieties of Ice creams. Just like Amitabh Bachchan worked wonders for Cadbury. We all are aware that kids are fond of cartoons and somewhere inside adults also connect to them. Unlike most other FMCG products Kwality Walls has hardly had any prolific Brand Ambassador. KW on the other hand has only around 50 varieties of Ice creams.In places like Gujarat havmour has an impressive share because it caters to the local tastes which is not he case with KW. Kids and youth emulate icons and hence this would prove to be a plus for the company. For example family packs which are usually sold around 1 litre can be sold at 200 ml and 500 ml packs. This presents a huge opportunity for KW if they can introduce new varieties of ice cream catering to the local preferences and at competitive prices. It also introduced an energy ice cream called Stamina primarily targeting the athletes and health conscious people.KW should seriously consider targeting this segment and in addition it can also launch a Diet-Ice cream as was seen by . Most unorganised players are found in the rural markets. Also as evinced previously KW has negligible presence in the rural markets. It is hard to find any other product from KW which commands the same sort of market. Product: Kwality Walls has always been synonymous with Cornetto and it is no wonder that it is the single most biggest seller from kwality walls. It may work well for Walls too. Walls using an Indian icon may be able to prove its Indian connect and touch to its customers.popularity of Youtube there can be some video contests asking people to describe why they like a particular Kwality walls product. Walls could make use of a fictional character to differentiate itself from the competition. Thought most of these varieties are not sold in huge quantities the company stands to lose customers if a particular flavour or kind of ice cream of a particular consumer are not available. Amul is currently the only brand in India which caters to the sugar free versions. Alternatively it could also use a character or cartoon to portray itself. With almost 50% of the diabetic population in the world present in India. a good Ambassador might do the trick for Kwality Walls.Vadilal which has been increasing its market share steadily has around 100 flavours and kinds of ice creams to choose from.

Financial Projections: Considering a total of 23 major markets in the country. We get a margin of 50% in it. The above calculations are a best case scenario for KW where the parlours gain immediate support and are successful.00.90.00.000( Rental and running cost per year) On an average Ice creams have a margin of 50% in the speciality versions.Ice creams have always found it difficult to replace them as the primary dessert.This combination of Ice cream with a sweet is extremely popular among south Indians. Net revenue= 106.00.80.000. Considering a case where they are moderately successful and assuming a footfall of 50% of the above calculations it would still generate a margin of around 53 crore. In a country like ours where there is a huge selection of sweets available as desserts . In tier 2 cities the set up cost would be 3 lakhs and a running cost of 50 thousand.00.00. .92. Total entailment is 10*20*5.000= 4. Though initially tragetted at health conscious people it eventually became a lifestyle statement. The selection of ice creams available and flavours can be substantially increased to cater to the changing tastes.10 of them tier 1 cities and 13 tier 2 and 3 cities we are looking to set up 20 parlours in each tier 1 and 10 parlours in tier 2 cities.000+13*10*3. ( Set up cost) 10*20*100000*12+13*10*50000*12= 19.Coke when it launched Diet Coke.000. KW can tap this by launching a product which combines sweet with an Ice Cream. Assuming each store operates for 12 hours with more customers coming in the evening there are an expected 360 customers everyday. Considering each tier 1 city would entail a set up cost of 5 lakhs and a running cost of 1 lakh per month.00. In addition there is an increased interest towards speciality Icecreams which can be catered to in the swirl stores. Increasingly Ice cream is being had in addition to a sweet.84. Assuming an average of 50 Rs per person this would generate a revenue of 360 persons*50 rupees*30 days*330 parlours* 12 months= 213.000.

31. Vanilla. The net effect would be an increase in the market share to 23% at the minimum.In addition KW is also looking to improve its reach to more 35000 retail stores with a majority of them in the rural areas. ➢ Establish Ice cream as a popular alternative dessert to sweets rather than a secondary replacement. Ranbir Kapoor would be an ideal choice for such a scenario and going by his current prices it would entail a cost of 1.25. Assuming we provide a refrigerator to 50% of them costing 15000 this would entail a total cost of 35000*0. Strawberry and Chocolate together constitute approximately 60% of the market. The brand ambassador has to be someone who has a keen following among teens and kids and at the same time the younger generation ie.. KW currently has sales of 14% of the 250 Mn dollar ice cream market in India. ➢ Increase the POS density in tier 1 and tier 2 cities.In addition all the other promotions included would entail a cost of around 5 crore and if successful should result in an increase in market share by atleast 3-4%.5 crore per year. ➢ Establishing Kwality walls as a major player in the rural markets where the majority of the 45% of urorganised market exists. This would result in increased sales by 20%.3 litres per annum. compared to 22 . In addition we also have an additional sales of 106 Crores. After this the total would be around 18% of the market. the age group of 20-28 which has become a major segment for ice creams. The per capita consumption of ice creams in India is just 300 ml per annum.25*15000=1. Challenges and Opportunities: The per capita consumption of ice cream in India is approximately 300 ml. as against the world average of 2. ➢ Increasing the share in the southern states to atleast 30% wher the per capita consumption is the lowest.000. Objectives: ➢ Increase the market share to atleast 22% in the next one year and 25% by the next year.

Having said that the Ice cream sector is witnessing a growth of CAGR of 18% per annum. strawberry and chocolate. especially while expansion. another hurdle is the high rent charged for floor space.litres in the US. Indian cuisine has a huge range of desserts in its mix. Another trend that is witnessing a change is the seasonal nature of the industry. nearly 60% is accounted to by three flavours of vanilla. etc. . This also becomes a problem when companies try to expand. Besides the presence of other players. According to the industry players. juice. coffee. but also from other like foods. is poor infrastructure such lack of cold storage and in case of rural penetration. 18 litres in Australia. Another major problem faced by the industry players. major players tend play around these flavours only. And to be on the safer side. Ice cream always competes against these for attention. Though changing. 14 litres in Sweden. this trend especially holds true for the North and the Western parts of India. regional competition from smaller players is another major issue. Besides desserts. the peak season for ice cream still remains the summer months of April-June and dips in the months of November-February. For big players. This is especially true for big players. There are several challenges that affect the industry adversely. even erratic power supply becomes an issue. Moreover. of the ice cream consumption in India. The variation in sales for Kwality Walls can range from 15–30% from season to off season depending on geography and brand. High tariffs and inefficient distribution systems will continue to bottleneck the import market for the short term. consumers still consider ice cream as a dessert and a side item. ice cream also vies for attention with other like foods for example in summers with cold drinks. Having said that. especially in malls. The industry players not only face competition from their competitors.

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