Amul Ice Cream

ReRe-launching Exotica
December 5, 2009

Overview
Indian Market Size
300 250 200
148 155

12%
209 182

240

In USD million

150 100 50 0 2005 2006 2007 2008 2009e

Launched in 1996 at Anand, Gujarat Number 1 ice cream brand in India Real Milk, Real Ice Cream Market Share of Major Players India s First Pro-Biotic Wellness Ice cream for the health conscious & Sugar Free Delight for Diabetics

Organized

Unorganized

Amul

HUL

Vadilal

Mother India

Others

28% 45% 55% 8%

38%

12% 14%

5C Analysis
Needs:
Stated, Real, Unstated, Delight, Secret
Significant brand differences
Complex buying behaviour Variety seeking behaviour

Customer

AMUL ice cream

Situations of Use:
Parties, evening walks, after meals

Decision Making Process

Few brand differences

Dissonancereducing buying behaviour

Habitual buying behaviour

High Involvement

Low Involvement

Organised sector

Unorganised sector
Fierce competition from the well established unorganised sector

Competitive advantages
1. 2. 3. Cost leadership First Mover advantage e.g. ProBiotic Brand name advantage

Competitor

Kwality Walls (HUL), Vadilal Industries, Baskin Robbins, regional players viz. Naturals

Suppliers

Distributors & Dealers

1. 2. 3. 70,000 retail outlets 3500 distributors 47 warehouses 1. 2. 3.

Complementors
Hotels Catering houses Corporations

Collaborator

1. 2.

2.12 million farmers 10,411 village level milk collection centres

5C Analysis
Strengths Weaknesses Opportunities Threats

ySuperior Brand Equity yHighest market share of 38% in ice cream market yWide Product portfolio at low price yWell spread cold chain distribution network

yPoor geographical coverage in rural areas yRaw materials and the product itself (ice cream) are perishable items lack of good cold chain in rural areas

yFew players in the premium segment ice cream yLow per-capita ice cream consumption but rising income levels in India

yLow quality competitive pricing from unorganised sector yForeign players in the market targeting high income consumers: Baskin Robbins, Haagen-Dazs

Company

Economic environment

Context

1. 2.

Growing economy Fast growth in households with discretionary spending power

Socio-cultural environment
1. 2. Demographic dividend Change in lifestyle 1.

Political/Legal environment
Economic liberalisation leading to entry of global majors

Segmentation
Zones/Region Psychographic Lifestyle City Personality

Geographic

Rural/Urban

Age & Lifecycle Demographic Income

- High income - Mid income - Low income

Occasions Behavioural Usage rate Benefits sought

Target Market Selection

Aim: To be the brand with highest volume-wise market share globally
Strategy: Product portfolio to cover full market Market
Low Income Mid-Income High Income Launched as direct competitor to Baskin Robbins

Malai Kulfi

Bricks

Exotica
Sugar-free ProBiotic Can Amul eat into Baskin Robbins share? Survey results: 71% surveyed do not associate Amul with premium ice cream

Product

Candy

Cones

Dollies

Cups

ProLife

Branding
Parent Company Ingredients
Amul Milk Amul

Extension
Exotica

Place of Origin

OTHER BRANDS
Milk producers in Gujarat

Anand, Gujarat

PEOPLE

PLACES
Amul parlours

THINGS

Marriages, Parties

Co-operative Movement, White Revolution

Events

Causes

Branding
New Brand Options for re-launching Exotica Sub-brand Endorsed brand

Consumer Based Brand Equity Model (Keller) for Amul Exotica

Brand Resonance

Consumer Feeling

Consumer Judgment

Performance

Image

Salience

Branding
Building Brand Equity for Exotica
Brand Elements
Name: Relates to premium Logo & Slogan: Emotional connect of Amul with consumers
Real Milk, Real Cream, Real Ice Cream

Communication

Engagement with consumers

Promotional events: Malls, colleges Feedback: Periodic feedback from consumers

Advertisements: Television, print and Internet PR Channel: Frequent press releases

Packaging & Design: Attractive packaging Brand Persona: Stylish, Pleasing, sumptuous

4P Analysis
Classification Differentiation
1. 2. 3. Form: Take-away pack Features: Rich taste, less overrun High quality and consistency

Product

Consumer goods category - Impulse good

Product Development
1. Line Extension 1.

Product Packaging
Attractive tubs

Amul Ice Cream Product Portfolio

Swirl
Swirl
(Cheese & Magic, Black Currant)

Sticks
Frostik
(Chocobar)

Cones
Tricone
(Butterscotch, Chococrunch)

Malai Kulfi
Masti Kulfi

Bricks

Cups
Vanilla

Novelties
Cassatta

Exotica

Swirl Magic
(Vanilla Magic Strawberry, Vanilla Magic Chocolate)

Candy
(Lemon & Orange Stamina)

Megabite Almond Kesar

Shahi Pista

Strawberry

Alphonso Mango

Hum Tum

Double Swirl
(Kiwi & Passion Fruit)

Dollies
(Raspberry, Mango)

Chocochips Kesar Pista Royale

Chocolate Kesar Pista Royale

Sweetheart Cake Magic

4P Analysis
Amul ice cream available in Recommendations for Exotica
1. Selected channel partners e.g. supermarkets 2. Scooping parlours 45% of those surveyed preferred purchasing premium ice cream from parlours

Place

1. Amul stores 2. Amul scooping parlours 3. General Stores 4. Push Carts

Key contributor to Amul s success

Pricing Objectives (Amul)
1.Goal of Market Penetration 2.Aim is to be the market leader in all product categories

Pricing Objectives (Exotica)

1.Goal of Market Penetration 2.Pricing to reflect premium status

Pricing Method (Exotica)

Mark-up pricing currently

Recommended Pricing

Pricing

Reason
Price of Amul normal chocolate ice cream (reference) Price Premium for extra creaminess Superior packaging Amul Exotica Premium brand value (after promotion) Amul Exotica Price to cover its normal value

Price
95 25 20 30 Rs 170/- per litre Survey results: 87% surveyed customers willing to buy at prices up to Rs.180/-

4P Analysis
Medium Offers
1. Buy One, Get One free (entire range of family packs) 2. Two Liter Super Saver packs

Other Suggestions for Exotica

1.Scratch cards with minor prizes 2.Free on-the-spot trial scoops

Promotion

1. Hoardings 2. Banners in supermarkets/stores 3. Print

6M s for Marketing Communication Plan for Exotica

Market
- Upper middle income group

Mission
-Creating brand awareness

Message
-Highlight key differentiating factors of Exotica

Money
-Increase advertisement budget for Exotica

Media
-Television commercials -Print -Internet

Measurement
-AIDA model (Awareness, Interest, Desire, Action)

Customer Acquisition & Retention

Value for money
- Competitive pricing - Weak on PQ schema

Entry into new markets

- Entering premium segment to broaden customer base

Media Publicity
- Focused publicity campaign for Exotica

Use of Technology
- Creating awareness about existing option of online ordering

Promotional Offers
-Trade promotion -Scratch cards with minor prizes -Free on-the-spot trial scoops

Special Retail Outlets

- Scooping parlours

Customer Retention -Increased Product Variety -Increased convenience to the customer -Engaging customers

Thank You