THEICECREAMINDUSTRY THE ICE CREAM INDUSTRY

PRESENTATIONBY: PRESENTATION BY: NEHAUPADHYAYA091326 NIKHILLALA091327 NIKHILTYAGI091328 G 09 328 PALAKSHARMA091329 PALLAVIGANJU091330

HISTORYOFICECREAM HISTORY OF ICE CREAM

Beforethedevelopmentofmodernrefrigeration,icecreamwasaluxury reservedforspecialoccasions. Icefortheicecreamwascutfromlakesandpondsduringthewinteror g y g , broughtfromsnowymountainsandstoredinholesintheground,orin woodframeorbrickicehouses,insulatedbystraw. 400BCPersianFaloodeh,5th centuryBC ancientGreekssoldsnowcones 400 C i l d h C i G k ld mixedwithhoneyandfruitinthemarketsofAthens. 10th centuryAD Arabspioneeredtoutilizemilkasaningredientinice delicacies.

KingTangs(A.D.61897)recipebroughtfromChinatoEuropebyMarco Polo. 62AD theRomanemperorNerosicecream 1533AD ItalianduchessCatherinedeMedicimarriedtheducdOrlansof Franceandbroughtrecipeswithher Mid1630s StateBanquetandFrenchchefofKingCharlesIofEngland EvolutionoficecreamrecipesinfashionableFrenchandItaliancourts E l ti fi i i f hi bl F h d It li t RecordsofIcecreamrecipesappearin18th centuryEnglandandAmerica 1776Firsticecreamparlour NewYorkCity

Eminent personalitiesBen Franklin, George Washington, and Thomas Jefferson had association with icecream 1832Augustus Jackson, a confectioner from Philadelphia new recipes 1846 Nancy Johnson patented handcranked freezer 1851 Jacob Fussell, Baltimore first largescale commercial ice cream plant 1851 1851 Carlo Gattis Penny Lick Ice cream Gatti s Penny Icecream 1904 St. Louis Worlds Fair Syrian immigrant Ernest y g Hamwis pastry cart chance invention of the ICE CREAM CONE; citizens of American towns of Two Rivers and Evanston invented the Sundae

 1926 Firstcommerciallysuccessfulcontinuousprocess

freezerforicecreaminventedbyClarenceVogt Icecreambecamepopularthroughouttheworldinthe secondhalfofthe20thcentury. Explosionoficecreamstoresandofflavoursandtypes. Vendorsoftencompetedonthebasisofvariety.

GLOBALPLAYERS GLOBAL PLAYERS

PresentScenario $ $59billionicecreamindustry Twoglobalgiants NestleandUnilever Othersignificantcompetitors GeneralMills,Wells DiaryandBaskinRobbins Diar and Baskin Robbins 2.5%annualgrowthrate,forecastedtohit$65 billionby2010

NESTLE
HighestMarketShare 17.5% Hasamultitudeofbrandsinitskitty,suchasDreyers andHaagenDazs Dreyers OperatesinUnitedStates Operates in United States Foundedin1928inOakland GoesbytwonamesDreyersandEdys q y AcquiredbyNestlein2002

Pioneersofanewchurningprocesswhichmakes gp nongrainyicecream Thischurningprocess,calledLowTemperature This churning process, called Low Temperature Extrusionmakesicecreamwhichhastwothirdsthe normalamountofcaloriesandhalfthefat normal amount of calories and half the fat HaagenDazs H D Establishedby PolishimmigrantsReubenandRose Mattusin TheBronx, NewYork,in1961 Startedwithonlythree flavors: Vanilla, Chocolate and Coffee Usesnoemulsifiersorstabilizersotherthaneggyolks Uses no emulsifiers or stabilizers other than egg yolks

UNILEVER
Secondlargestmarketshare 16% Brandsunderitsumbrella BenandJerry s&Walls Ben and Jerrys & Walls BenandJerrys Establishedin1978byBenChenandJerryGreenfield inVermont y y y p g Theymarktheiranniversarybykeepingitafreecone day

Seasonalandlimitedbatchblends Haveamissionstatementthatcoversproduct, economicandsocialdimensions AcquiredbyUnileverin2000 Walls BrandnameofUnileversHeartbrand B d f U il H b d Establishedin1920inUK MergedwithUnileverin1981 BecomesthemarketleaderinUK Becomes the market leader in UK

BASKINROBBINS BASKIN ROBBINS

Foundedby BurtBaskin and IrvRobbins in 1953 Glensdale Known for their 31 flavours, they were the people to Knownfortheir31flavours,theywerethepeopleto introducethephenomenaoftastingtheicecreams be o e buy g o e beforebuyingone Solid growth rate in the last few years Solidgrowthrateinthelastfewyears

INDIANMARKETOVERVIEW
Percapitaconsumption:Verylowat250ml(USA 22Litresperannum,Pakistan 800ml) 22 Litres per annum, Pakistan 800 ml) Penetration rate About15% ProfitMargin 30% P fit M i Peaksales season ApriltoJune 60%oftotalsales. Dominatingflavors: . Vanilla, Strawberry and chocolate(70% market) 1.Vanilla,Strawberryandchocolate(70%market) 2.Butterscotchandotherfruitflavors

MARKETSHARE MARKET SHARE

BYVOLUME:
MarketShare Market Share
Amul MotherDiary KwalityWall's CreamBell Vadilal Others
East 10%

BYREGION:
IceCreamConsumption

23% 38%

South 20%

North 40%

5% 8% West 30% 12% 14%

GujaratCooperativeMilkMarketingFederations AnandMilkUnionLimited(Amul)Brand Anand Milk Union Limited (Amul) Brand MarketShare:38%

MILESTONES TopIcecreamplayerinIndiasince2001 10thMarch,1996 LaunchatAhmadabad 1997 LaunchedinMumbai 1998 EnteredChennai 2002 ComestoKolkataandDelhi ThenervecentreoftheWhiteRevolutioninIndia Availableinnolessthan70,000storesacrossthecountry

RangeofAmulIcecream Range of Amul Ice cream

KwalityWalls
MarketShare:14%
of starting from scratch, it entered the market through acquisitions worth Rs 150 crore. 1993 - acquired D ll i d Dollops i cream f ice from C db ' Cadbury's. 1995 - bought Kwality from Ravi Ghai and Milkfood from Jagatjit g y g j Industries Became the market leader with an over 75 per cent market share
Instead

Focus on the top 30 cities of the country p y

RangeofKwalityWall sIcecream Range of Kwality Walls Ice cream

VADILAL
MarketShare:12%
120 plus flavors, in a variety of more than 250 packs Chain of Happiness Parlours Ice Cream boutiques Plans to raise Rs 50 crore to expand its capacity by 40% and spread out to new geographies

RangeofVadilalIcecreams Range of Vadilal Ice creams

MOTHERDIARY
MarketShare:8%
Supplied across the markets of Delhi/ NCR, Mumbai, Kolkata, Punjab,
Rajasthan, UP & Uttaranchal Developed a strong portfolio of local flavours which could work well in the upcountry markets. Both Vadilal and Mother Dairy with its battery of pushcarts have an eye on the non metro markets. non-metro markets It could give them the first mover's advantage in the cities and towns where K lit W ll i not yet present. h Kwality Walls is t t t

RangeofMotherDiaryIcecream Range of Mother Diary Ice cream

HAVMOR
APunjabirefugeefamily,whichsoldhomemadeicecream fromhandcarts,todayownstheRs110croreHavmorbrand I iti ll Initially,soldfromasmallroadsideparlourinKarachi. ld f ll d id l i K hi FirstwenttoDehradun,thentoIndore D i Duringthe1950s,hemovedtothecity,asAhmedabadiswere h 1950 h d h i Ah d b di knownfortheirloveforeatingout Set up a mechanised plant in Naroda near Ahmedabad in SetupamechanisedplantinNaroda,nearAhmedabad,in 1991of75,000litresoficecreamadaycapacity It has 11 000 dealers across Gujarat Ithas11,000dealersacrossGujarat Publicizedasa100%vegetarianIceCream

RangeofHavmorIcecream Range of Havmor Ice cream

OtherIcecreamPlayers Other Ice cream Players

MARKETING STRATEGIES
APPEAL TO THE IMPULSE BUYING HABITS OF THE BUYERS CREATE AN IMAGE OF ICE CREAM AS A PRODUCT OF DAILY CONSUMPTION INNOVATE NEW FLAVOURS AND SET LUCRATIVE PRICES PEOPLE MUST KNOW WHAT TO BUY

PROBLEMS IN MARKETERING
SOFT SERVE ICE CREAMS OCCUPYING MOST OF THE MARKET SHARE LACK OF INNOVATION RISING HEALTH CONSCIOUSNESS AMONG CONSUMERS TAKE HOME PACKS AND BUDGET BUYS AT SUPERMARKETS REDUCING THE MARGINS

COMPARATIVE STRATEGIES
HINDUSTANUNILIVER 30:70PRINCIPLE ENHANCINGSUPPLYCHAIN INVESTINGEXCLUSIVELYIN ADVERTISING SEGMENTINGMARKETS ANDTARGETING OTHERINDIANPLAYERS BUILDINGHUGE DISTRIBUTIONNETWORK INNOVATINGLOCAL FLAVOURS ICECREAMCARTSAND OUTLETS O S CAPTURINGDIFFICULTTO ACCESSMARKETS

GLOBAL REVOLUTION
SENSITIVE PRICE POINTS POTFOLIO OF LOCAL FLAVOURS SEGMENTING AND TARGETTING THE MARKET SCOOPING PARLOURS DISTRIBUTION CHANNELS GROWTH

THEFUTURE THE FUTURE

Whereisthegrowth: 1.Unorganizedsector 60%oftotalmarketof 1.Unorganized sector60% of total market of Rs2000Cr 2.Nosureshotplanningbylocalandglobal p y playersWorldleaderNestlenotyethere y 3.Verylowpercapitaconsumption250mlper annum 4.Heavilyunderinvestedindustry

THEFUTURE THE FUTURE

5.Droughtconditionsintheregion 6.Extendedsummers moreopportunities 6.Extended summersmore opportunities 7.Healthconsciousnessontherise

THEWAYAHEAD THE WAY AHEAD

1. Investmentininfrastructure Coldchains, g distributionandlogistics 2. Developmentofsugarfreeandprobioticice cream Theyhave50%lessfatthannormal cream They have 50% less fat than normal icecream 3. Penetrationofunexploredmarketwhere localdelicaciesareprevalent local delicacies are prevalent 4. InvestmentinR&Dchangingqualitywith time ti

THEWAYAHEAD THE WAY AHEAD

5.Bankonhappinessfactorstudyshowseating p g aspoonfuloficecreamgivesasmuch pleasureaswinningmoneyorlisteningto favoritemusic favorite music

THANKYOU